7 Important Ways to Financially Prepare for Your Texas Divorce

I am often asked by clients and potential clients about things that can be done to get financially prepared for a Texas divorce. I have written various articles on this topic before and I will put links to those articles at the bottom of this one. One of my recommendations to those facing divorce is to start trying to separate finances.

It is not uncommon for a divorce to throw those involved into financial turmoil. If a divorce participant is not careful they may be blindsided with bills they are unable to pay, bank accounts that have been emptied, or credit cards that have been maxed out by their spouse.

Taking a small amount of time ahead of time can allow you the breathing room you need to make important decisions during the divorce and not make a bad decision because you are struggling financially.

1. Establish a Separate Bank Account

Establishing a separate bank account is a fundamental step towards financial independence and security during a divorce. This move is vital for ensuring access to funds for basic needs and emergencies, without the risk of interference from your spouse.

It’s advisable to select a reputable bank, open an account in your name, and start channeling a portion of your income or savings into this account. Setting up direct deposits for your salary to this new account can also be a practical step. Over time, this account will become a cornerstone for your financial foundation post-divorce, aiding in a smoother transition to financial independence.

2. Detach from Joint Credit Cards and Loans

Protecting your credit score and limiting your financial liabilities requires the removal of your spouse as an authorized user on joint credit cards and loans. Neglecting this step can lead to significant debt accumulation by your spouse, adversely affecting your financial standing and credit rating.

Contact your creditors to revoke your spouse’s authorization and closely monitor your statements for any unauthorized transactions. For joint debts like mortgages that cannot be easily separated, it’s essential to develop a strategy for managing or resolving these debts, potentially with the help of a financial advisor.

3. Obtain Your Credit Report

Acquiring a personal credit report is crucial for uncovering any undisclosed debts or financial missteps made by your spouse under your name. Utilizing free online services to obtain your report from major credit bureaus is a proactive way to detect any discrepancies or fraudulent activities early in the divorce process. Regular review of your credit report allows you to address issues promptly, safeguarding your credit status.

4. Separate Insurance Policies

Ensuring continuous coverage of health, auto, home, and life insurance during and after the divorce is imperative. Filing for a Temporary Restraining Order at the beginning of the divorce proceedings can prevent your spouse from canceling existing insurance policies.

Additionally, researching and securing individual insurance policies is crucial, especially in cases where there’s a risk of your spouse disregarding court orders. Post-divorce, it’s also important to reassess the beneficiary of your life insurance policies and make necessary updates.

5. Strategize Bill Management

Effectively managing household bills plays a critical and often overlooked role in the divorce process. You should assess which bills need transferring to your name and consider opening new accounts for services such as cell phones or utilities.

Developing a clear payment plan, possibly including setting up automatic payments or creating a budget, ensures timely payments. In some cases, negotiating with service providers for better rates or payment plans can be beneficial, especially when transitioning to a single-income household.

6. Plan Major Purchases Wisely

When you consider a divorce, planning major purchases with foresight becomes crucial. Ideally, make significant acquisitions, such as buying a vehicle or expensive appliances, before you initiate divorce proceedings. This precaution is necessary because many jurisdictions automatically impose standing orders or temporary restraining orders once you file for divorce. The intention behind this measure is to prevent either party from unilaterally depleting marital assets.

7. Invest in Education and Job Training

For individuals anticipating a divorce, especially those who have been financially dependent on their spouse, investing in education and job training is a strategic move towards long-term financial self-reliance. This investment is not only about immediate employment opportunities; it’s about building a sustainable career path that can provide stability and growth in the years following a divorce.

Consider exploring educational programs, vocational training, or certifications that can enhance your employability and earning potential. This may involve returning to college, attending workshops, or engaging in online courses that align with emerging job markets. The key is to identify fields that not only interest you but also offer viable career opportunities.

Final Thoughts

In conclusion, preparing financially for a divorce in Texas involves thoughtful planning and strategic decision-making. From establishing a separate bank account to wisely planning major purchases and investing in your own education and job training, each step is crucial in safeguarding your financial future. These measures not only protect your assets and credit during the divorce process but also lay the groundwork for a stable and independent post-divorce life.

If you want to know more about what you can do, CLICK the button below to get your FREE E-book: “16 Steps to Help You Plan & Prepare for Your Texas Divorce“

If you want to know more about how to prepare, CLICK the button below to get your FREE E-book: “13 Dirty Tricks to Watch Out For in Your Texas Divorce, and How to Counter Them” Today!“

Other Articles you may be interested in:

1. 6 Tips – On How to prepare for a Texas Divorce
2. Roadmap of Basic Divorce Procedure in Texas
3. Child Custody Basics in Texas
4. 6 Mistakes that can Destroy Your Texas Divorce Case
5. 10 Quick Tips About Parental Visitation
6. Does it Matter who Files First in a Texas Divorce?
7. Low Cost and Affordable Divorces, Attorneys, Websites and Divorce Costs in Texas
8. Too Poor to Divorce in Texas?
9. How long can you avoid being served divorce papers?
10. 5 Tips For Dealing With Your Ex After a Divorce
11. Father’s Rights in Texas divorce cases
12. Selling your home during a divorce in Texas
13. Opening Statements in a divorce trial
14. How to Prepare for a Meeting with a Divorce Attorney

Bryan Joseph Fagan( Attorney )

Bryan Fagan, a native of Atascocita, Texas, is a dedicated family law attorney inspired by John Grisham’s “The Pelican Brief.” He is the first lawyer in his family, which includes two adopted brothers. Bryan’s commitment to family is personal and professional; he cared for his grandmother with Alzheimer’s while completing his degree and attended the South Texas College of Law at night.

Married with three children, Bryan’s personal experiences enrich his understanding of family dynamics, which is central to his legal practice. He specializes in family law, offering innovative and efficient legal services. A certified member of the College of the State Bar of Texas, Bryan is part of an elite group of legal professionals committed to ongoing education and high-level expertise.

His legal practice covers divorce, custody disputes, property disputes, adoption, paternity, and mediation. Bryan is also experienced in drafting marital property agreements. He leads a team dedicated to complex family law cases and protecting families from false CPS allegations.

Based in Houston, Bryan is active in the Houston Family Law Sector of the Houston Bar Association and various family law groups in Texas. His deep understanding of family values and his professional dedication make him a compassionate advocate for families navigating Texas family law.