Money is a big source of stress in marriage. Unfortunately, money is also a big hurdle for divorce. Many people in Texas stay in unhappy marriages because they are worried they will not have any financial stability in the future. While anyone can feel this way, the problem tends to affect more women than men.
Buying a house is a significant investment for Texas couples, both financially and emotionally. This can make dividing this property during divorce particularly difficult. For those who are hoping to keep the family home during property division, here are a few things to keep in mind.
In the past, people could deduct any alimony they paid from their taxes. Although recipients were taxed on received alimony, this arrangement generally resulted in less taxes being paid overall, which helped payers afford higher monthly alimony payments. Changes to the tax laws have made it so that people can no longer deduct any alimony payments. This means that a couple going through a divorce may have to look elsewhere to find tax savings.
Saving for retirement is not something that happens overnight. Most people in Texas spend decades putting away money for later in life, but divorce can disrupt even the most carefully planned retirement. Regardless of a person's age when filing for divorce, it is important to be aware of how retirement savings are handled during divorce. Otherwise, protecting future financial security during retirement may be much more difficult.
Married couples usually share most things, like housing, beds and groceries. Some younger adults feel inclined to change up how they do things, which is not necessarily a bad thing. With it easier than ever to simply transfer money to another person, some Texas couples are increasingly choosing to maintain separate bank accounts during marriage. However, this can become a problem during divorce when individuals do not understand the difference between community and separate property.
Losing a job is rarely an easy experience, but it can be especially difficult when a person is laid off in the middle of a significant life transition. Being laid off or fired in the middle of a divorce means that an individual will have to face some unique hurdles during the process. This makes it all the more important for those in Texas who are dealing with such a situation to be aware of how their actions could influence their future and the outcome of their divorces.
Investing might seem like a far-off reality for the average person in Texas. As such, it may come as a surprise for some people to learn that they have already made fairly significant investments in not just real estate, but also their future. Purchasing a home and saving money in a retirement account are both considered forms of investments. So how should these investments be dealt with during divorce?
Whether divorcing for the first or second time, the process is an undeniably emotional one. However, individuals who are pursuing their second divorce might encounter more complicated issues than those who are on their first. Issues such as property division, child custody and even financial security after divorce can all feel harder to manage for a person who already has one divorce under his or her belt.
Ending a marriage can impact many different aspects of person's life, from where one lives to the household income. While change can be a good thing, divorce can have unintended consequences for those who are not aware of how dividing debt can impact the future. Here is what Texas divorcees should understand about protecting their credit scores during divorce.
Some people in Texas might have some preconceived notions about what prenuptials are and who uses them. However, young adults are shaking up those long-held beliefs. Millennials are not just delaying marriage until later in life, they are also better prepared for divorce than their parents might have been.