Experience, Compassion, Connection.

I Will Be There For You.

Financial planning is an important aspect of the divorce journey

On Behalf of | May 29, 2023 | Divorce

Starting over after a divorce can be challenging, and even more so when you are struggling financially. If your Texas marriage has failed, financial planning is important. You should plan before, during and after the divorce since you will be making decisions that will have a long-term impact.

Planning before the divorce

Even before the divorce, you will want to get a comprehensive view of your finances, including assets and debts. You will need to gather supporting documents and perhaps speak with a financial professional who can help you understand your assets, their worth and any legal issues related to their division. Some of the documents you should gather include:

  • Savings and investment account statements
  • Tax returns
  • Pay stubs
  • Property titles
  • Mortgage and other loan information
  • Retirement account information
  • Life insurance information

Planning during the divorce

The divorce process can take a while, particularly if you and your ex do not agree on many things. During the divorce, you should create a financial strategy as you begin to negotiate your settlement. This is the right time to make a realistic budget for the future, anticipating what your income and expenses will be. This should include possible expenses such as children’s extracurricular activities and medical costs. During this time, it is best to avoid making large purchases as you figure out how you will cover your basic expenses in the future.

Planning after the divorce

Once child support and alimony have been ordered, you should focus on the future. Revisit your estate plan to make appropriate changes such as updating life insurance and will beneficiaries.