While the emotional aspect of divorce is well known, Austin family lawyers can emphasize that the financial ramifications can be even longer lasting. There are certain things that you should and should not do regarding your finances during the divorce process.
Understand that your standard of living will likely change after your divorce. This is especially true if your household depends on two incomes. Austin family lawyers may emphasize the need to establish a realistic budget so that you can properly plan for the next phase of your life. A financial planner may be able to assess your likely financial situation and ways that you can adjust to help you provide greater stability.
Austin family lawyers will likely advise you to close all joint bank accounts and credit cards. Taking this simple step can help you to protect your assets in the long-term by preventing the other spouse from incurring new charges or debts. Additionally, opening your own accounts can help you to establish your separate credit. Discuss with your attorney the portion of funds that you are entitled to in such accounts.
While it is easy to lose sight of the big picture with immediate needs on the horizon, Austin family lawyers can explain that it is important to think about long-term financial stability. For example, consider retirement and your potential entitlement to a portion of your spouse’s retirement plan. While you may think that you want the family home to raise your children, it may be a better plan to take a bigger lump-sum payment now than to incur potential tax consequences in the future.
Consult with a financial planner to determine various scenarios, advantages and disadvantages of various settlement arrangements. Don’t make financial decisions in isolation. Instead, think about potential losses from investment, inflation, capital gains and taxes in order to devise the best full financial plan for you.
For many couples, the family home is the most valuable asset. One parent may receive more custodial time in the divorce decree. However, this factor does not necessarily mean that the spouse with more custodial time should automatically get the family home. In other cases, the best solution may be to sell the family home and split the proceeds accordingly.
Even if you reach an amicable decision with your spouse, know that you may not be receiving the exact same value as your spouse. Income-generating assets may have the same value as non income-generating assets, but the first group may lead to a greater net value.
Ending a marriage is usually not easy, but mature individuals realize they should try to avoid conflict, especially if children are involved. Ten mistakes that a person makes during a divorce can easily derail these plans and cause serious problems. Couples might avoid these by retaining the services of qualified Austin family lawyers.
If you would like to learn about other financial steps you should take or avoid, contact the experienced Austin Family Lawyers from Nunis & Associates by calling (512) 236-9696.