Preparing for a divorce

Most people focus on the emotional toll a divorce can take on the family members. However, a divorce can significantly impact your finances. Transitioning from a double-income home to supporting yourself and your children on your salary can be daunting. Preparing for divorce includes getting your finances in order. Furthermore, you need detailed financial information for the divorce action to ensure you receive a fair property settlement and adequate support payments. In this blog, our Austin divorce attorney discusses what you should do financially to prepare for divorce.

How to Prepare Financially for a Divorce in Texas

Each situation is unique. Therefore, when you meet with an Austin divorce attorney, they will advise you on specific steps you should take to protect your finances and prepare financially for a divorce. However, steps you can take now as you prepare to meet with an attorney to discuss a divorce include:

Create a Budget and Gather Financial Information

Begin by gathering financial information, such as information and balances for bank accounts, retirement funds, income, debts, and expenses. Take stock of your financial situation, including the resources available now and after a divorce.

Create a realistic budget for what you will be responsible for paying when you file the divorce action and after your divorce is complete. Do not leave anything out or underestimate expenses. You need an accurate picture of your ability to support yourself and your children, even if that picture is bleak. An accurate budget helps you assess whether you need spousal maintenance or alimony. 

Inventory Your Assets and Property

Take stock of what you own and what it is worth by creating an inventory and appraisement. Include all property you own separately and the marital property subject to property division. Attach copies of titles and other evidence of ownership and value to the inventory for reference. 

Tell your attorney immediately if you believe your spouse might be concealing assets or disposing of property. Your attorney can take steps to uncover hidden assets and stop your spouse from depleting marital property. 

Seek Financial Advice From a Professional 

High-net-worth divorces can be challenging. Support obligations and property division can be more complicated and significantly impact a spouse’s tax obligations. Consider consulting a financial advisor and tax professional as you prepare financially for divorce. However, do not discuss the divorce with your current advisors because they also have a fiduciary duty to your spouse. 

Setting Up New Financial Accounts 

You may need to open new bank accounts, credit cards, and other financial accounts in your name only. A divorce lawyer can advise you of the best timing to take this step and your rights regarding marital property. You do not want to be accused of accruing marital debt or concealing marital assets by transferring funds to an account in your name only. 

Schedule a Free Consultation With Our Austin Divorce Attorney to Learn More 

If you are considering a divorce, the best way to protect your present and future financial stability is to seek legal advice as soon as possible. You need to determine how your assets and liabilities will be divided and determine support arrangements. Contact the Law Office of Ben Carrasco to schedule a free consultation with an experienced Austin divorce attorney. Our legal team will help you take the steps necessary to protect your best interests.

About the Author
Ben Carrasco is a highly skilled family law attorney based in Austin, Texas, known for his extensive expertise in family law and business litigation. While his primary focus is family law, Ben brings a wealth of experience in litigating diverse business disputes, ranging from breach of contract and collections to business torts, fraud, and real estate matters. In his family law practice, Ben navigates all aspects of the field, including divorce, child custody, support, property division, and more, offering clients expert guidance throughout the litigation process. His legal journey began in complex commercial litigation, initially with a global law firm and later with a prominent Austin-based firm. However, driven by a desire to make a direct impact on people's lives and embrace the human element of the law, Ben transitioned to family law, a decision that has proven to be deeply rewarding. A proud Austin native with roots in California, Ben completed his undergraduate studies at the University of California, Berkeley, before earning his law degree at Stanford Law School, where he excelled in legal writing and served as an associate editor of the Stanford Law and Policy Review.