Texas residents who are planning on divorce might be concerned with the emotional aspects and leaving a situation that was not working for them. With all the overwhelming feelings and changes that can accompany the end of a marriage, they might overlook important financial concerns that will affect their lives afterward for a very long time. However, this is exactly what they need to be focused on when they begin the process of splitting up.
Looking towards the future
One of the first things you should do when preparing to negotiate a divorce settlement is to look towards the future by creating a realistic budget. In fact, you will need to create more than one, as your financial needs will change over the years and the divorce settlement will continue to impact your life. You should focus on both the immediate future and years down the line. Some of the things to keep in mind as you create your budget include:
• Your living expenses over the years
• Health care needs for both your children and you
• Children’s needs such as college education and extracurricular activities
• Insurance to secure alimony and child support payments continue if a problem arises
Consider the true value of your assets
Part of the process you will undertake will be dividing your assets. This can be done amicably or through mediation, or it can go to litigation. Either way, you will need to consider what the true value of each asset is, including tax implications that can significantly change the value. This is the time to ponder if you can really keep the family home, for example, or if it would be too great a burden.
As you deal with these financial concerns, you should also remember to update your documents to reflect your new reality. Update beneficiaries in your policies and your will and remember to establish new powers of attorney.