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Mitigating negative financial effects of divorce

| Aug 13, 2019 | Divorce |

It is common for people in Texas and across the country to worry about their finances. After all, any major change could result in repercussions that leave someone hurting financially. Unfortunately, divorce is one of those changes that could have significant impacts on someone’s monetary affairs.

Though avoiding divorce may not have been possible, avoiding negative financial repercussions can be. Individuals ending their marriages can work to ensure that they do not wind up struggling with their money-related matters because they are now single. A good starting place is to create a budget or even multiple budgets. One budget could look at divorce-related expenses and how those will be paid, and another could work to manage future expenses living on a single income.

It is also important to look at the marital debt that has accrued. A best-case scenario would involve both parties working to eliminate that debt before the divorce is finalized. Debt can be tricky to deal with, and even if the court determines that one party is responsible for paying back that debt, creditors could still come after the other party for payment.

Staying on top of one’s finances can be difficult even under favorable circumstances, and when going through divorce, there is a high risk for negative financial effects. Fortunately, Texas residents can work to mitigate those effects and give themselves a strong chance of remaining financially stable after ending their marriages. Because property and debt division could play a role in maintaining that stability, it may be important to discuss how to work toward desired outcomes with experienced attorneys.