On behalf of The Law Offices of Mary Ann Beaty, PC posted in Divorce on Friday, April 18, 2014.
When marital problems present themselves, major decision-making is required. Married couples in Texas might seek a divorce, if they are not able to work through their issues. Although a split might be their solution, this can also present additional complications. The divorce process can be costly, and finances are often the focal point. This is especially true when it come to property division and splitting marital assets.
While the divorce rate remains around 50%, there is a constant rise in gray divorces. Married couples should always considered that divorce could become a reality in their future. A later in life divorce could significantly affect their finances. This is especially true as the couple nears retirement age.
Given the fact that retirement is more expensive to go through alone than it is with a partner, divorce can also impact the amount of retirement assets an ex-spouse is left with post-divorce. In order to recover from the costs associated with divorce and the division of their marital finances, some older divorcees may have to return to the workforce to afford retirement later on.
Making a plan for divorce is not uncommon these days. This is accomplished by drafting a prenuptial agreement. For many, this ensures separate property remains separate and marital property is properly distributed. Although this legal document could significantly assist the couple, if they divorce, making a financial plan during the divorce process could also accomplish this, so long as they are able to reach agreeable terms.
Even if the soon-to-be ex-spouses are not able to work together, they could independently make a plan. In doing so, it is important that they plan for their future, gather all records, understand their debts, document their household goods, determine what an equitable division would look like, what fees are associated with the dissolution and their social security benefits. Understanding these major topics and addressing them could protect their finances and assist them reach a divorce settlement.
Finances are usually the culprit for avoiding divorce issues or even prolonging the process. Those struggling with property division, retirement assets or reaching a divorce settlement should understand their options. This will not only help sort out their issues but will also protect their interests and rights.
Source: Forbes, “Protecting Your Finances In A Divorce: Essential Dos And Don’ts,” April 8, 2014