Divorce: How to avoid financial distress on the way to settlement

 Posted on July 13, 2020 in Uncategorized

If you were to conduct a survey of the financial statuses of Texas residents, you'd be hard pressed to find someone who has not encountered financial challenges at some point in life. In fact, you'd likely be able to relate to one or more stories of having to pinch pennies or cut superfluous spending to make ends meet along the way.

Even if you're in a comfortable financial position at this time, it doesn't necessarily mean you don't worry about money issues. Especially if a specific life event is going to involve new expenses, you'll want to thoroughly review all available options to make well-informed decisions. Divorce is one such issue that can land you in financial distress if you're not careful.

Divorce is not one-size-fits-all

You might have a lot of well-meaning friends and family members, perhaps some who have already navigated divorce, who want to give you financial advice as you prepare to negotiate a settlement. It's okay to listen to advice from people who care about you.

However, it's also important to remember that no two cases are exactly the same, and what worked for your relative or a friend of yours might not be in your own best financial interest in divorce. It's best to speak with someone who can help you protect your interests.

Think about your future budget

Perhaps, you've been living in a dual-income household for most of your marriage. Once you're on your own, your overall financial picture may look quite different than it did when you were married. This is why it pays to think ahead.

When your goal is to come away from divorce in as financially stable a position as possible, it's a good idea to think about your anticipated expenses and liabilities down the line. Such issues may affect the decisions you make during divorce negotiations.

Be as prepared as possible regarding financial documents

In order to negotiate a fair agreement regarding property division, child support or alimony, you first need to be fully aware of your own finances. Compiling paperwork such as pay stubs, bank statements, tax returns or investment information helps strengthen your footing for negotiations and also makes full disclosure for assets and liabilities a lot less stressful.

Avoiding the courtroom can help you save money

Do you know that you can settle a divorce without ever stepping foot inside a courtroom? There are typically several options available to do so, including mediation. To mediate a divorce, you and your spouse must agree to avoid confrontation and to peacefully discuss each matter of importance in order to work together to achieve a fair settlement.

Mediation is often the least expensive means to obtain a divorce. You can learn more about how it works by meeting with an experienced mediator who is well-versed on such issues.