In a marriage, couples usually have a system for meeting financial goals. In the aftermath of a divorce, figuring out how to set new financial goals may take significant effort when working with limited resources. Though Texas is a community property state, along with negotiations over property division, there are several strategies that can be implemented to achieve financial security.
One of the first steps is to design a budget that will meet all of one’s “newly single” expenses. This budget should take into account all of the obligations that need to be addressed that may have been previously handled by a spouse. In the beginning, such a budget will likely be restricted to short-term goals, but may be expanded once a comfortable cushion has been provided. Along with budgeting, it is important to address any debts that may have been accumulated through the divorce process and to re-finance any shared debt into the responsible party’s name.
Since one’s tax filing status will be different, there may need to be adjustments in the amount of withholding from wages. Also, the matter of health insurance may need to be taken into consideration, since existing policies may no longer apply. Since there is likely less income after a divorce, it may be beneficial to seek new income sources to ensure that one’s financial goals will be met in the future.
To that end, one will understandably need to set new goals to meet retirement needs. In addition, it is often helpful to establish an emergency fund to offset any unexpected expenses. If one is struggling to develop a plan that works well, there are professionals who can provide information on setting up a budget that will make the best use of the assets one receives from the property division from a divorce. Texas residents who are facing a divorce and are apprehensive about the financial ramifications may consult with an experienced attorney.