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How divorce impacts a person’s finances

On Behalf of | Dec 12, 2019 | Divorce |

A divorce may cause emotional pain, and for women in Texas, the financial ramifications may be even more significant. This is because the typical woman makes 81% of what a typical man makes in a given year. Furthermore, women are more likely than men to obtain custody of their children. However, there are steps that individuals of either gender can take to ensure that they are as financial secure as possible before, during and after a divorce.

Prior to getting divorced, it can be a good idea to gather bank, credit card and other financial statements. Individuals may also want to open bank accounts that only they know about so that they have money to pay for their divorce. If possible, they close all joint accounts to ensure that the other spouse isn’t able to accumulate new debt that both parties to a marriage could be responsible for.

Individuals who struggle with budgeting or determining their tax bills may want to work with an accountant who may be able to help a person determine the impact a divorce could have on that individual’s tax filing status and income tax rate. Individuals are encouraged to find a health insurance plan to replace the coverage that may have been obtained through a former spouse’s employer.

Those who are facing the end of a marriage may want to discuss their plans with an attorney. This may make it easier to determine how property may be divided or if an individual is entitled to spousal support. An attorney may be able to review a prenuptial agreement to determine if it is still valid. If it is, a divorce may be settled in a timely and more civil manner.