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Coping with common financial challenges after a divorce

On Behalf of | Oct 1, 2019 | Divorce |

Ending a Texas marriage usually results in financial challenges as former spouses rebuild their individual lives. People who once shared incomes and expenses must live off single incomes while sometimes paying debts and new expenses like child support. Careful budgeting and lifestyle adjustments typically help people make the transition, but they must give particular attention to health insurance, tax filing status and building credit.

Health insurance represents a big expense, especially for someone previously covered by a spouse’s health plan. Someone who will lose coverage in a divorce might have it available through an employer. If not, the person might qualify for subsidies when buying insurance through the Affordable Care Act exchange. For people who have health coverage, they should make sure that their plans are no longer covering former spouses unless a divorce settlement requires it.

A divorce could change people’s tax filing status. They should find out what their new filing status would be so that they can adjust withholding. Failing to do so could reduce pay unnecessarily or produce a large tax bill. Sometimes people have very little credit after ending a marriage if they never had any loans on their own. People who have no credit history can begin to establish one by obtaining secured credit cards.

Consultations with an attorney might alert a person to the financial issues that must be addressed during and after a divorce. An attorney might explain how state law determines the division of marital property. An attorney might take action to defend the client’s rights from a former partner’s attempt to deal unfairly or even hide financial assets.