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How to plan financially for divorce in Texas

It can be hard for Texas couples to imagine their life after divorce – especially couples who have been together a long time. The process of figuring out your finances might be the hardest part of the divorce for many couples.

Some spouses give up their careers to be full-time homemakers and stay-at-home parents. Other times, spouses file for divorce without fully realizing the financial ramifications.

It can be difficult regardless of where you fall on that spectrum. Either way, there are things you can do to make planning for your financial future after divorce easier.

Make a list of your current income, expenses, and assets

To best prepare for your finances post-divorce, you must have a thorough understanding of where your finances are at in the present time. Even if you think you know, making a list can be extremely helpful – for both you and your financial or legal team. For this list, you’ll want to:

• List all of your income sources

• List all of your assets

• List all of your expenses

• List all of your long-term and short-term investments

As you’re listing these items, think about what might change in the divorce. It’s important to note what assets or investments your soon-to-be ex might have a claim to, like cars or retirement accounts.

You’ll also want to think about additional expenses or loss of income. For example, if your spouse works more than you do, you’ll want to account for that loss in income.

Start planning your new budget

It’s a given that your quality of life might drastically change after divorce. If you’re used to lavish vacations or large houses, you might have to sacrifice some things in order to make life work as a newly single person.

With that in mind, you’ll want to think about how to best prepare yourself for the future. You’ll want to work with financial advisors to figure out what assets you absolutely need to keep for yourself and where you’re willing to compromise.

It’s normal to get emotional while figuring this out. Divorce is a big step and it can be scary thinking about what happens after, but being prepared is the first step to making sure you’re financially prepared.