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In the United States, money troubles and financial disputes are among the leading causes of divorce. When spouses clash over financial matters, it often signals trouble for the marriage. This is due to two primary reasons, highlighting the importance of financial planning in divorce.
Firstly, being out of sync with your spouse on financial matters can reveal underlying issues in your communication and collaboration skills, which extend beyond just money-related problems. Chances are, if you can engage in constructive conversations about money, you are also more likely to communicate effectively about your children and other crucial aspects of your marriage. In this context, financial planning in divorce can serve as an early warning system, highlighting potential challenges in the overall health of your marriage.
Second, financial discord can be a foreboding sign for your marriage lies in the sheer practicality of what you’re fighting about. If money is a constant concern for your family, it means that fundamental aspects of life – such as food, shelter, clothing, and your children’s education – may not be receiving the attention they deserve. If discussing money is challenging during prosperous economic times, imagine the strain it would put on your marriage during less favorable circumstances.
Handling Divorce When Finances Are a Concern
As previously mentioned, financial stress and anxiety are primary triggers for divorce in the United States. Most married individuals endure a great deal of hardship before making the emotionally and financially taxing decision to proceed with a divorce.
The best divorce attorney would counsel clients that when a marriage’s liabilities begin to outweigh its benefits, it’s time to consider divorce. However, it’s worth noting that very few people rush into divorce for trivial reasons; rather, it’s often the culmination of long-standing marital problems.
If money is the root cause of your marital issues, a significant change in income, such as job loss or reduced earnings, may prompt you or your spouse to contemplate divorce. It’s crucial to carefully assess the situation and formulate a plan before taking any steps toward divorce.
Conduct an Honest Financial Assessment
Start by evaluating your current financial situation. What is the value of your home? Have you been actively saving for retirement? Can you list all your credit cards and the associated debts on each?
This assessment will help you understand your options during and after the divorce process. Will you have enough savings to secure new living arrangements, or is moving in temporarily with family a more realistic option? These are the critical questions to address before embarking on a divorce journey. It’s advisable to have a problem-solving session with the best divorce attorney you can hire to explore your best course of action.
Assess Home Equity
Consider the equity in your home. If the home were to be sold or one spouse bought out of it, would there be equity, or would you owe more on the mortgage than the property’s market value? If both spouses’ names are on the mortgage, refinancing may be necessary to release the departing spouse from future mortgage obligations. However, getting approved for a refinance, especially during economic downturns, can be challenging.
Evaluate Investment Holdings
Financial challenges during tough economic times can impact not only your income and savings but also your investments. The nature of your investments will influence how settlement negotiations unfold. Investments that are less dependent on stock market fluctuations, such as pensions, tend to remain more stable during economic downturns. Effective financial planning in divorce is crucial in understanding how these assets may be divided, ensuring that you are prepared for any financial implications as your divorce progresses.
If your investments are in assets like a 401(k), IRA, or mutual funds, their value may have significantly decreased. While it’s likely that the stock market will recover over time, you may need to postpone your planned retirement date.
Finding the Best Divorce Attorney: Your Advocates in Good and Bad Times
Regardless of whether your family is experiencing prosperity or facing challenging times, having the best divorce attorney who can advocate for your interests in a divorce is crucial. At the Law Office of Bryan Fagan, PLLC, our dedicated attorneys serve clients across southeast Texas, providing representation in court or during negotiations. If you want to learn more about our firm and services, don’t hesitate to reach out to us for a complimentary consultation. We’re here to support you through your divorce journey, regardless of the economic circumstances.
Final Thoughts
In conclusion, navigating divorce amidst financial challenges requires a clear understanding of your financial situation, strategic financial planning in divorce, and professional guidance. By prioritizing essential expenses, seeking support from financial and legal experts, and focusing on long-term stability, you can better manage the economic impacts of divorce. Remember, the goal is to transition into your new phase of life with financial confidence and peace of mind.
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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“
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Law Office of Bryan Fagan, PLLC | Houston, Texas Divorce Lawyers
The Law Office of Bryan Fagan, PLLC, routinely handles matters that affect children and families. If you have questions regarding Divorce, it’s essential to speak with one of our Houston, TX Child Divorce Lawyers right away to protect your rights.
Our Divorce lawyers in Spring, TX, are skilled at listening to your goals during this trying process and developing a strategy to meet those goals. Contact the Law Office of Bryan Fagan, PLLC by calling (281) 810-9760 or submit your contact information in our online form.
