How Will a Divorce Affect My Finances?

Nov 8, 2018 | Divorce

divorce can have a significant effect on your personal financial outlook. Texas governs factors like responsibilities are toward your children and your former spouse are considered. Understanding your obligations and rights can help you better prepare for the ways aspects of your life will change.

Legal Costs During Divorce

Your legal costs during a divorce will depend on a number of factors. Amicable divorces tend to be less expensive than those that are contentious. Spouses who are mostly in agreement regarding child custody, a division of assets and other factors may be able to go through mediation instead of court, which significantly cuts costs. If one party is unable to pay for legal counsel, the court can compel the other to make funds available so that each spouse has adequate representation.

Dividing Assets During Divorce

Texas is a community property state. That means that all assets acquired during a marriage are the property of both spouses. Assets can include houses, investments, pensions, and other retirement plans.  This often will not mean a 50/50 division. Instead, factors like age, health, and future earning potential are all taken into account. It may be necessary to sell assets like homes or to divide assets like retirement plans in order to split them equitably between spouses.

Child Support Obligations in Texas

By law, parents are required by law to provide financial support for their children. This will often take the form of a monthly payment from one parent to the other. The specific amount will depend on a number of factors, such as the income of each parent and how much time the children spend in each parent’s custody. A parent who has primary physical custody, for instance, will likely receive a monthly payment from the other even if this parent has a higher income.

Will You Owe Alimony?

Alimony, also known as spousal maintenance, is a payment from one spouse to the other for a period of time during separation and after divorce. In most cases, Texas courts are reluctant to grant spousal support. The exception is when one spouse has been convicted of violence toward the other or the children. Also, if one spouse has significant disabilities that prevent them from working. In most other cases, support is unlikely to be granted. The party petitioning for support will need to look for work and provide documentation of this effort. Then, if they are unable to find adequate support, they will make a petition to the court.

Having a strong understanding of your rights and obligations can help you work toward the best possible outcome during your separation and divorce. Knowledgeable legal counsel is a must. Get in touch today to discuss your case and what you can expect during and after divorce.

More From This Category

Filing for divorce during COVID-19 in Bexar County

Filing for divorce during COVID-19 in Bexar County

My husband and I want a divorce and it will be uncontested. We are in agreement on everything. The courthouse says it is closed, can we file now? And is there an advantage to filing now? Yes, a petition for divorce can be filed now, but it has to be done...

read more
Divorce Mediation Expectations?

Divorce Mediation Expectations?

Many people use mediation to settle their divorce, as it can be less stressful than going to court. It may also be less expensive, but there are some things you should know before you choose that option. If you want mediation to work for you, or if you aren't sure if...

read more

Relationship Status Changes Must-Know Tips For Women

When you marry or divorce, your relationship status changes. But separation can also cause important changes you'll want to be aware of from a legal perspective. Anytime a woman decides to separate from or divorce her husband, or chooses to save her marriage instead,...

read more