How to Avoid Struggling Financially After Divorce

As family law attorneys who practice in Texas, one of the most common concerns we hear from clients were seeking a divorce is how to make sure that they can get back on track financially. Working with the right attorney can make all the difference in ensuring that your divorce does not devastate your finances. Below, we discuss some of the steps you should take to make sure that you can get back on track after your divorce:

Rework Your Budget & Think About New Financial Goals & Income

First, you will want to make sure that you rework your budget to adjust to new financial situation. This not only means making sure you can cover your expenses with your income, but also taking into account any alimony and child support payments you might have to make. Make these changes as soon as you possibly can so that you do not risk reverting to the old spending habits. Part of this might involve looking for ways to increase your income, such as picking up a side job, or learning new skills, as well as setting new financial goals, such as establishing or adding to emergency or retirement funds.

Debt & Credit

Be as proactive as you can about addressing debt even if that means refinancing that debt. A balance transfer or a personal loan may help you reduce any interest that you might be paying on your debt.

In addition, it is important to build up your credit if you previously did not have any credit cards or loans in your name during your marriage. This will help you with future purchases by having a good credit score. Your attorney should also help ensure that your former spouse’s name has been removed off of any important accounts (if you had joint accounts). This also applies to loans – they should be refinanced in the name of whoever is paying them off.

Tax Status  & Dependents

You should also work with your attorney to change your tax withholding and status. This includes informing your employer about changing your withholding status right away. Also make sure that, if one spouse plans to claim any children as dependents on their tax return, this has been specified in the divorce settlement.

Health Insurance

Health insurance is another important topic that will need to be addressed. If you were previously covered through your spouse’s employment, you will need to look into either getting signed up for a health plan through your work or other options through Obamacare, for example. Conversely, if your former spouse was covered under your policy, make sure that they are taken off.

Contact Our Texas Family Law Attorneys For Help

Finally, don’t forget to ask for help when you need it. There are a number of resources available to you, and your family law attorney can discuss this with you. This includes any programs out there that may help with this transition.

For more information on this and other family law topics, contact our experienced Brownsville family attorneys at Colvin, Saenz, Rodriguez & Kennamer, L.L.P. today.

Resource:

fool.com/the-ascent/banks/articles/struggling-financially-after-divorce-heres-what-to-do/

https://www.rcclaw.com/the-biggest-money-related-reasons-people-seek-out-divorce/