The dissolution of a marriage in Texas can be costly in a number of ways. In addition to taking an emotional toll on a spouse, it can unfortunately take a financial toll, too. Here is a glimpse at a couple of financial mistakes that people make following divorce and why avoiding these mistakes is so important.
First, people who have just gotten divorced may be tempted to engage in retail therapy to soften the blow of the divorce process. This may involve, for example, running out and purchasing brand-new cars to represent their newfound freedom. However, new automobiles and other items may have a negative impact on their financial situations.
Second, some newly divorced individuals cash in their investments and then use the money to cover current bills. After all, they figure they can eventually put this money back later. However, when people sell assets that are highly appreciated, they may end up owing significant amounts in taxes when they sell their various investments. On top of this, losing these investments means they may fall behind in reaching their financial goals.
The divorce process can understandably be complicated to navigate. However, an attorney in Texas can examine a divorcing spouse’s financial situation and help him or her to make informed financial decisions both during and after the divorce proceeding. This is invaluable whether issues such as property division and alimony are being addressed outside of court or at divorce trial. The attorney’s ultimate goal is to ensure that the client’s best interests and rights are protected long term.