Those who are entering the divorce process in Texas will have to worry about splitting up their financial assets. Going through the process of listing all of your assets and debts can be both time-consuming and emotionally taxing. By taking the time now to understand what the most common financial issues are in regards to a divorce, you could set yourself up for the smoothest division of assets possible.
Dealing with your liabilities
Property division is most commonly thought of when it comes to the assets a couple owns. However, property division also includes splitting up the liabilities that a couple owes. One of the easiest methods for giving up liabilities is to try and pay off any debts that you can with the marital assets.
Many times, liabilities are put in the name of both spouses. When those liabilities are split up during a divorce, the spouse that is not awarded the liability still has their name on the liability. This puts them at the mercy of hoping the other spouse will make their payments on time.
Splitting up retirement accounts
Retirement accounts can be quite tricky during the property division process. In many cases, a spouse contributed to their retirement prior to being married. This brings up the necessity to evaluate the retirement account to determine what is considered marital property and what is considered separate property.
While splitting up a retirement account is a common process for a divorce, most couples will have an alternative route. Instead of splitting up the retirement account, the other spouse entitled to some of the retirement funds may be awarded another one of the marital assets of equal value. This can help to keep the entire retirement account intact and under full ownership of a single spouse.
Dividing up marital property during a divorce can be a bit confusing for both spouses. By taking the time to understand the various financial situations that you’ll be dealing with, you can better prepare yourself for the process. It’s always advisable to hire an attorney to assist you throughout the divorce proceedings.