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Tips for protecting assets and income during divorce

On Behalf of | Jan 13, 2023 | Divorce

Now that the holidays are over, some individuals in Texas may feel ready to go through the divorce process. However, if their spouses engaged in manic spending during the holidays, they may be facing high levels of debt on their joint credit cards. In addition, they may be worried about their spouses’ continued spending habits in the new year. Here are a couple of ways they can protect themselves from their future exes’ spending when going through the divorce process. 

Eliminating joint accounts 

One of the most important steps a divorcing individual can take to protect his or her future income and assets is to terminate any accounts that have both spouses’ names on them. These accounts include both bank accounts and credit card accounts. The divorcing individual may then open up new accounts in only his or her name. In this way, the two parties can avoid pooling their income and also keep their future expenses separate. 

Gathering financial documents 

Early on in the divorce process, divorcing individuals would also be wise to gather financial documents outlining all of their marital assets and liabilities. These documents may range from statements for credit card accounts as well as bank statements. They also include statements related to retirement assets and brokerage accounts. This information will help with determining how best to divide assets and debts during the divorce process. 

Securing legal support 

An experienced Texas family law attorney can help a divorcing individual to pursue a comprehensive and fair settlement with his or her spouse through an out-of-court process, such as negotiation. However, If the two parties cannot find common ground when navigating property and debt division, a savvy attorney will be ready to litigate these matters at trial. Either way, one’s attorney will seek the most personally favorable outcome for his or her client, increasing the odds of a much smoother transition into the future.