As we continue our series on how divorce affects people’s finances, we will look at what happens to your assets. This includes any tangible property that has value, from your furniture to your home and cars.
Protecting this property is typically a top priority, so knowing what this entails is crucial.
Tips for dividing properly fairly
Generally, under Texas’ community property laws, all assets that either party acquires during a marriage belong to the couple. Thus, when they divorce, parties will divide community property equally. Ensuring you receive your fair split of these assets involves:
- Correctly categorizing property as community or separate
- Valuing your property accurately
- Conducting a thorough audit of your assets
- Possibly canceling or freezing joint accounts
- Keeping property intact to retain value
When it comes to physically distributing property, this can occur in a variety of ways. Some accounts can just be divided in half; physical property like a car or home cannot. Thus, parties must assign a value and distribute assets accordingly.
This process can require considerable negotiation or, in some cases, litigation to decide who gets specific items and keep the scales balanced.
One big mistake to avoid
Unfortunately, too many people take deceptive measures to try and increase their share of the property in a Sugar Land divorce. They hide or give away property. Sometimes, parties intentionally undervalue an asset or lie about information like income.
Hiding assets in any of these ways is a serious mistake. Not only can it result in financial penalties, but it is also illegal. You also risk losing your credibility in the eyes of a judge.
Securing your financial future
Every person wants their fair share of property during divorce, and these suggestions can help you do this.
You can also take additional steps to feel more secure with your financial future. You can:
- Open your own credit cards and bank accounts
- Consult a financial professional to create a budget
- Avoid overspending or taking on new debts
- Get help with filing your taxes
- Reassess your financial goals
These measures can help you feel more confident in your financial health after divorce. And accomplishing this can make it much easier as you start a new chapter.