The decision to end your marriage is often one of the biggest decisions you will ever have to make. For some people in Texas, once they have decided to divorce, they may feel a sense of relief and a desire to move forward with their lives. However, there are financial costs associated with a divorce beyond attorney and court fees that people should be aware of, so they can plan accordingly.
First, many people going through a divorce will be moving from a two-income household to a single-income household once the divorce is complete. It is important to develop a budget based on your single income. The budget should not only include living expenses, but also the cost of a new car if you need one and insurance costs, such as auto insurance or homeowner’s insurance, for example. Also, when it comes to the family home, a person should determine if they can afford homeownership on a single income before deciding whether to keep a home during the property division process.
In addition, it is important that the results of the property division process are fair. Couples should consider both tangible and liquid assets when determining their needs post-divorce. Couples should also understand the tax consequences of retaining certain assets. In addition, if possible, shared debt should be paid in full before the divorce is finalized, as any remaining debt will also need to be split between the couple.
These are only some financial considerations those going through a divorce should keep in mind. Sometimes the decision to divorce is best for you and your ex-spouse, but it should be understood that your life will change financially during the divorce process and after the divorce is finalized. With careful planning, it is possible to ensure you stay financially secure post-divorce.