FINANCIAL CONCERNS ARE AN UNAVOIDABLE FACTOR IN A DIVORCE
On behalf of The Law Offices of Mary Ann Beaty, PC posted in Divorce on Wednesday, April 5, 2017.
Texans who are under the impression that divorce is an individual issue that occurs of its own due course might be surprised to know that it becomes more prevalent at certain times of the year. Research from the University of Washington found that the number of divorces in their state were consistently at their peak in March and August. Other states have a similar phenomenon. There is a belief that the holidays and their aftermath have an influence on the number of people who choose to move forward with the end of a marriage.
Regardless of the reason for the divorce, one matter that is universal as a concern is finances. There are several factors that must be addressed when divorcing. A person’s credit score can be damaged when there is a divorce. One spouse might not have a credit history or there could be shared accounts. Failing to make payments can negatively impact a credit score. This is especially troublesome if one spouse is supposed to make payments for accounts in the others spouse’s name. Keeping track of the credit score is key.
Shared assets can be complicated. Knowing whether the assets will be divided equally is imperative. Texas is a state in which there are community property laws and the marital property will be shared. This can include lucrative items such as real estate, stocks and retirement accounts. With retirement savings accounts, it is often necessary for there to be a qualified domestic relations order (QDRO) which will decide on how the retirement savings are divided. With these accounts, there can be penalties for withdrawal. In some instances, it might be wise for the account to be rolled into an individual account to have protection from taxes. There are many other issues to consider.
Since divorce can result in numerous issues in dispute, those who are worried about divorce legal issues related to the financial future must understand how to properly prepare. Speaking to an attorney while there is an ongoing marital dispute can help to prepare for the filing and for the inevitable financial issues that will arise.