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Divorce impact on finances is one of the most significant challenges couples face—and financial stress is often a leading cause of divorce itself. In recent years, shifting job markets, economic uncertainty, and changes in how and where we work have placed added pressure on families across Texas and the nation. Some individuals have lost jobs entirely, while others have experienced reduced hours or relocated work environments. These changes not only affect your day-to-day life but can also complicate the financial realities of divorce. Understanding the divorce impact on finances is essential as you prepare for how these life changes will influence your future stability.
Many people delay divorce due to financial concerns. You might fear losing your home or your spouse’s income, especially if you’ve been a homemaker or worked part-time. Limited income, job skills, or childcare responsibilities can make the prospect of divorce feel overwhelming.
The attorneys with the Law Office of Bryan Fagan would like to share with you our thoughts about divorce and finances. Not only how your finances play a role in the divorce but the impact of the divorce on your finances moving forward. If you are interested in learning more about our office, your situation, or the law in Texas related to divorce, then I recommend that you contact the Law Office of Bryan Fagan. Our licensed family law attorneys offer free-of-charge consultations six days a week in person, over the phone, and via video. These consultations are a great way for you to learn more about your case and how the laws of Texas related to divorce can impact your family.
Finances impact who you will hire to be your lawyer
Different attorneys charge different amounts to represent you in a divorce. Family law attorneys bill by the hour. That means that our office, the attorney across the street, and the one around the corner from where you work will charge you different rates based on several factors. You would hope that an attorney would charge based on prior successes in the world of divorce, but that does not always happen. Often, you find that the attorney will charge you more based on how expensive it is to rent their office space, how many car payments the lawyer has, and a host of other factors that are not related to you or your family.
Understand your rights and fees before hiring a divorce attorney
One of the reasons why I think it is so important for you to be able to have a free-of-charge consultation with one of our attorneys is that we can walk you through a contract. When you decide to hire a lawyer, you will sign a contract with him or her. That contract defines the nature of the attorney-client relationship between you and the attorney. There are important pieces of information for you to read. Our office wants you to be able to look through a contract with our office and ask us if you have any questions.
For today’s blog post, you must understand what your rights are as far as paying for us to represent you. This is a situation where we understand that you will be paying money to have a lawyer represent you in the divorce that you are about to go through. We know the sort of responsibility that we owe to you as a client. As a result, you must have a good understanding of how we will bill you and what our attorneys charge on an hourly basis to represent clients in a divorce case.
Our team of attorneys represents clients from all backgrounds, walks of life, and situations. We pride ourselves on being able to provide top-notch legal representation to our neighbors here in southeast Texas. We hope that you will investigate the services that our office can provide, and then come on in and talk to one of our attorneys about the possibility of us representing you in your divorce.
Choose the right divorce attorney based on what’s truly at stake in your case
How much money you have, your income, and the stakes of your case will all make a difference in helping you determine who should be representing you in a divorce. If you have very little at stake in the divorce in terms of assets and community property division then you may decide that hiring any attorney out there to represent you in the divorce may make the most sense.
At that point, the cost is the most important factor to you. However, if you have minor children or a lot in the way of community property to divide up then it may make more sense for you to spend more money on a lawyer to gain some experience and know-how when it comes to going through a divorce. Learning the tough lessons of divorce is best done before the case starts. Hiring an inexperienced attorney means that you will be paying that lawyer money to learn about divorce through your case. This may be ideal for the lawyer (to be paid while learning) but it is not exactly the best fit for you.
I would offer to you today that in my opinion, the Law Office of Bryan Fagan offers the best blend of experience, resiliency, practical knowledge, negotiation skills, trial experience, and teaching skills than any other family law attorney in Texas. Bear in mind that our attorneys have the hearts of a teacher. This means that we will spend your case teaching you about what is going on in the case so that you can make better decisions for yourself and your family. If the attorney you are talking to spends more time talking than listening then you may have a potential problem on your hands.
Finances impact the decisions you make regarding your children
One of the most expensive kinds of cases that you can pursue within a divorce relates to conservatorship fights with your spouse. Conservatorship refers to the rights and duties that you and your spouse share about your children. If you and your spouse disagree on who should be named the primary conservator of your children, that conflict can quickly drive up the costs of your case.
Avoid costly court battles by negotiating a fair custody settlement
For starters, people who do not agree on this subject tend to go to temporary order hearings and trials more often than any other kind of divorce. Going to court is expensive. You are paying your attorney to not only go to court with you for a hearing or trial that may last for days but you are also paying him or her to prepare each day for trial or hearing. These are costs that can add up quickly. Rather than going to court, the aim of you and your attorney should be to try and negotiate a fair settlement with your spouse on these issues.
Settling your case is the best way to save money within the case itself. No, you should not try to settle your case just because it will save you money. However, if you can successfully negotiate a settlement to your case, you can avoid the time and money commitments that go into litigation. We also need to mention that you will be missing time at work to attend hearings and/or trials. This hits your bottom line as far as the income side of the equation.
Know your limits before entering a costly custody battle over conservatorship
So, if you do not have the money to pay for a long and drawn-out custody battle with your spouse, then you may not want to dispute conservatorship issues quite as strongly. As a father, for example, you may believe that you are the better-suited parent to become the primary conservator of your children after the divorce. If you are barely able to pay for your attorney now, then your chances of being able to hang on and afford to pay for a long custody battle are slim to none. Unfortunately, this is a situation that happens somewhat frequently in divorce cases, especially when two parents have two different budgets in connection with a divorce.
If you and your spouse disagree on conservatorship, then you may be in for a longer divorce than you would have ordinarily anticipated. The question that we need to ask ourselves is how much time can you spend in your case? What are the issues that are most important to you? Can a trial solve those issues? What are the chances of a judge ordering what you want in the conservatorship area of your case? Ask yourself these questions and then meet with an experienced family law attorney to learn more about them and what your chances are for success in the conservatorship area.
Finances impact how you and your spouse divide community property
Community is, by and large, the property that you and your spouse acquired during your marriage. If you bought property during your marriage, Texas law typically treats it as community property. You need to understand this because the court can divide that property during the divorce. The judge may award it to you or to your spouse, depending on what the court deems fair.
Create a clear plan to divide property fairly and avoid relying on the court
The other option would be to have the property sold and the funds from the sale divided up between the two of you in some form or fashion. This is what happens frequently when it comes to the sale of a home, for example. Exceptions to the general rule stated herein regarding community property relate to property acquired by gift or inheritance during the divorce. If you inherit a boat from your uncle during your marriage, then that boat would be your separate property.
Otherwise, you should plan on most of the property in your life being subject to division in the divorce. This matters because you need a clear, well-thought-out strategy for dividing property during your divorce. Going into this subject matter without a plan is a bad idea. Odds are good that your spouse has been thinking long and hard about how to divide up this property and the better-prepared person tends to get their way often. You and your spouse understand your financial situation far better than a judge does, which means you’re in a stronger position to make long-term decisions about your property. When you combine that insight with the need for fairness, it’s critical that both of you learn how community property works and create a clear plan for dividing it.
Negotiating community property division based on your unique financial needs
The community property laws of Texas do not necessarily pertain to your settlement negotiations. You can indeed use the laws on property division within your negotiations, but you do not have to stick to them. Rather, you can and should consider how you want to see the property divided when negotiating with your spouse. Your financial situation will play into how you negotiate for a division of community property. For example, if you have a substantial amount of separate property and your spouse has virtually no separate property, then a judge may be more likely to award your spouse a disproportionate (greater than 50% share of your community estate) to your spouse to compensate for their lack of separate property.
If you earn a high income, have a strong professional background, and a steady work history, the court may consider awarding your spouse more than half of the community estate—especially if she stayed home to raise children and has limited education or work experience. You may also want to negotiate for more liquid assets in the divorce if you know that you will need an infusion of cash immediately after your divorce comes to an end. Receiving a lot of retirement account money in the divorce may help you in sixty years, but it does not exactly help you now.
Your finances after a divorce
Finally, your finances after the divorce can be acutely impacted by the proceedings of the case itself. If you know that you are going to need a leg up financially after the divorce, then you may seek out spousal maintenance or even contractual alimony through the divorce negotiations. A judge can order spousal maintenance as a form of financial support one spouse pays to the other after divorce.
In most cases, you must stay married for at least 10 years before the court considers spousal maintenance. However, you can request it earlier if you meet certain exceptions. If you’re disabled and can’t work, caring for a disabled child, or your spouse was recently convicted of family violence within the past two years, you have the right to petition the court for spousal maintenance. The judge can then award support during trial based on your specific situation.
Next, you need to be able to consider whether you can afford to remain in the family house after the divorce. Many times, parents will want to keep a family home to provide their children with stability and a sense of consistency during a tumultuous period of change, like a divorce. However, you need to be realistic about your finances to determine whether you can afford to pay a mortgage on the home without the assistance of your spouse. You can make a bad situation worse by agreeing to pay a mortgage that you do not have the income or separate property to pay for. It may be best for you and your spouse to sell the home and then divide the equity in the home according to the factors that we have outlined in today’s blog post.
Conclusion
The divorce impact on finances is unavoidable and often shapes the course of the entire legal process. While financial concerns play a major role in nearly every divorce filed in Texas, your unique circumstances—such as income, debt, property, and employment status—will influence the specific strategies used during and after your case. Understanding how Texas divorce laws apply to your financial situation is key to protecting your assets and planning for a secure future. To gain insight tailored to your needs, speak with one of the experienced family law attorneys at the Law Office of Bryan Fagan.
Questions about the material contained in today’s blog post? Contact the Law Office of Bryan Fagan
If you have any questions about the material contained in today’s blog post, please do not hesitate to contact the Law Office of Bryan Fagan. Our licensed family law attorneys offer free-of-charge consultations six days a week in person, over the phone, and via video. These consultations are a great way for you to learn more about the world of Texas family law as well as about how your family circumstances may be impacted by the filing of a divorce or child custody case.
Other related articles
- How to Handle Divorce Finances: Protecting Your Assets in Texas
- Finances Involved in a Texas Divorce
- How can you protect your finances in a divorce?
- Breaking Bonds, Splitting Debts: How to Manage Family Finances in Texas Divorce
- Mastering Finances: How to Manage Your Credit During a Divorce in Texas
- Questions About Talking to Your Child About Finances and Divorce
- Finances for the New, Post-Divorce You
- Control the Person in Your Mirror and You Can Control Your Finances After a Divorce
- Getting Yourself and Finances Together at the Start of a Divorce
- Credit and Divorce: Get Your Finances in Order by Borrowing Smart
