Being aware of your finances is essential when you are going through a divorce. Setting up a budget enables you to accurately assess all sources of income, assets, and outstanding debts. Dealing with the financial aspect of a divorce can become quite complicated, but a knowledgeable Austin family law attorney will be able to guide you through the process.
Preparing a budget helps determine your family’s standard of living and what your financial needs will be after the divorce. You can create one budget that lists your household expenses during the separation from your spouse and another budget that provides estimates of what your expenses will be after the divorce is finalized. Having a budget that reflects your financial situation during the separation is very important, especially if you are unable to afford certain expenses and need support from your spouse. Calculate your income and living expenses so that any potential spousal support payments can be evaluated. If you have children, you’ll also need to analyze childcare expenses such as private school tuition, daycare or babysitting, recreational activities, and healthcare. An Austin child custody attorney will let you know how the divorce could affect your financial future and any lifestyle adjustments you may need to make with regards to housing, childcare, entertainment, etc. Another benefit of creating a budget is that it lets the court know which spouse is able to handle the responsibility of maintaining major assets. For example, if one spouse makes substantially more money than the other, he or she could be required to continue making mortgage payments or cover the property taxes for the family’s residence. If both spouses have an overwhelming amount of debt and live paycheck to paycheck, they might consider filing for bankruptcy in order to get a fresh start after the divorce.
In some cases, a spouse may under report the amount of money he makes or will attempt to hide certain assets. Fully disclosing information about your finances and providing the necessary documentation to your attorney makes it easier for him or her to spot any discrepancies. When both spouses are honest about their finances, a fair monetary settlement can be reached more effectively.
If you need assistance with a pending divorce or child custody issue, an experienced Austin divorce attorney at Nunis & Associates can evaluate your case. We are dedicated to fighting for the rights of our clients. Call us today at (512) 236-9696 to schedule a confidential consultation.