When marriage does not work out, the last thing you want to contemplate is navigating paperwork and legal strategy. The financial decisions you make right now, before filing for divorce, can substantially protect your future for years to come.
Gather financial documents
Start by meticulously collecting your financial records. You will need a comprehensive picture of what you and your spouse own and owe. Pull together:
- Bank statements from the past year
- Three years of filed tax returns
- Pay stubs from your current job
- Any retirement accounts, such as 401(k), pension, IRA
- Stock portfolios and other investments
- Business financials (if either of you owns a company)
- Credit card statements
- Mortgage documents and car titles
Making copies of everything might be smart. Some individuals find it beneficial to store copies outside their residence, such as with a trusted friend or in a safety deposit box in their name only. As Texas is a community property state, most assets acquired during marriage may belong to both of you. Presenting documentary evidence that those assets exist allows the court to equitably divide them.
Protect your accounts and credit
If you do not have a bank account under your name only, it’s advantageous to open one now. This is not about concealing money. It’s about maintaining access to funds for daily expenses and attorney fees during the divorce proceedings.
Check your credit report from all three bureaus at AnnualCreditReport.com. Look for accounts you may not know existed or debts your spouse may have opened in your name. If the debt occurred during your marriage, Texas law will likely hold both of you liable for it, regardless of whose name appears on the account.
An important rule: avoid depleting joint bank accounts or withdrawing money from retirement accounts. Judges can penalize this behavior by awarding you less in the final settlement.
Understand community versus separate property
Texas community property law presumes that everything acquired during marriage belongs to both spouses equally. Your income, retirement contributions, real estate acquisitions and even that vehicle in your name alone. It’s all community property.
Separate property encompasses what you owned before marriage, inheritances and gifts given specifically to you. But you must substantiate it with documentation like pre-marriage account statements, inheritance paperwork or gift letters.
Know your rights
Every situation is unique. For instance, a business owner would require different guidance than a stay-at-home parent. An experienced family law attorney can evaluate your specific circumstances and develop a strategy tailored to your needs. With help, you can better protect what’s rightfully yours.
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