Texas couples who are seeking a divorce will often face some financial issues that must be resolved. The value of the marital assets may determine the difficulty in coming to an agreement, although protracted battles have occurred over seemingly small amounts of money. The best preparation for dealing with the finances of divorce is to have complete information.
The divorce settlement may contain a number of financial provisions, including alimony and child support. The couple will face the prospects of paying for the maintenance of two homes. Investment for children's educations that were routine before the divorce may become a source of contention. All of a couple's debts, earnings and possessions will need to be divided into those belonging to each party individually and those belonging to the marriage. The property settlement will take this division into account.
Many financial decisions involving a divorce will have particular tax consequences. Deciding which party will pay the mortgage on the house and get the deduction for mortgage interest payments and property taxes is an important decision. If retirement accounts are to be divided, there may be tax penalties for early withdrawal. Spouses may have each other listed as beneficiaries on insurance policies, retirement plans and other savings plans. Each party will want to review these and make appropriate changes.
Divorce is often an emotional experience for both parties. Trying to make financial decisions in such an environment may seem overwhelming. A person who is facing the end of a marriage may want to obtain the assistance of a family law attorney in negotiating a settlement that deals with property division and other applicable divorce legal issues.