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Preventative measures to avoid financial regret after divorce

On Behalf of | Jan 21, 2020 | Divorce |

Texas residents may be surprised to learn that it can take about five years for an individual to recover financially after a divorce. There are some preventative measures that individuals can take in order to speed their recovery if they get a divorce in the future.

From the beginning of a marriage, it is important for each partner to be involved in the family’s finances. Even if one partner pays the bills or makes investments, both individuals should be involved in making big financial decisions and should have access to bank accounts, retirement balances and tax returns. A report by Fidelity Investments revealed that around 80% of respondents who went through a divorce regretted the fact that they were not more involved in their family’s financial affairs.

Communication regarding finances should be important for couples. The same report revealed that about 10% of respondents found hidden assets during their divorce, and 14% found uncovered debt. Transparency and regular discussions about finances can help couples minimize some marital problems or soften the financial blow that they will take during a divorce.

While not all couples feel comfortable signing prenuptial or postnuptial agreements, they should at least be aware of some of the benefits that these documents provide. A prenuptial agreement spells out what each partner owns before marriage and allows them to create a fair plan as to how they will split assets during a future divorce. Postnuptial agreements are made during the marriage and protect assets that the couple acquires together.

If a couple decides to sign a postnuptial agreement, it is best for each individual to have their own attorney. The attorney may answer questions regarding asset division, debt division and retirement assets. The attorney may also help draw up postnuptial agreements or even represent a client in court if it is necessary.