You are getting divorced! After the emotional decision is made you must address financial situations impacting the family breakup.
What are the major financial pitfalls of a divorce? Are you prepared to stay on top of all financial problems and decisions in this divorce to strive for a financial win-win situation?
Where’s the liquid cash? Divorce generally never goes as fast as you would like nor do you receive as much as you think you should! If divorce is imminent start saving up money now! You will need to pay divorce expenses and have support for your new household. There will be many unanticipated costs that may drain you financially.
- If you don’t have a credit card in your name get one now. If you share credit with your spouse, close out as many credit cards as possible if he/she can charge on your credit. Even if you don’t use the cards, the account balance will still be owed and both spouses may be legally responsible for the debt.
Not Prepared for this Divorce? Divorce is a serious change of life event. Get Prepared Now! Timing is all important! When is the best time for you to get divorce? Make sure your financial situation is good before you take the divorce leap. Need new tires, buy them. Kids need dental work, see the dentist. Just remember: after the separation, your expenses will be paid by court order and not always be to your liking.
Where are the important divorce financial records? Don’t leave without all your documents that identify what you and your spouse accumulated during your marriage and which can establish the fair market value! Even if you were not in charge of finances while you were married, you must secure copies of all records. You are entitled to your share of financial property and any additional income you find may increase the earnings that calculate child support or spousal maintenance support. What are you looking for? At least three years of tax returns, mortgage paper on your home, wills, trusts, bank, credit card, and financial statements, car registrations and titles, insurance policies, and deeds to real estate. If you have separate property from inheritance or gifts from your family, make sure you have all records of these transactions. Our blog, Texas Financial Checklist http://dld.bz/dqcej is a detailed list of items and records needed to have before filing for divorce. A very good item to use for your preparation!
Have you overlooked any Divorce Assets? If a business is involved a forensic accountant may be hired to look of any signs of additional income or overstated expenses.
- Hobbies and side businesses that use expensive equipment or generate income needs to carefully be looked out. Are you entitled to compensation for expenses you paid to get your spouse through school?
- All assets, big or small can add up. These assets can always be used for trade on something you can use.
- Your spouse may try to hide assets. By keeping all documents and paystubs to make sure there are not any irregularities, things usually work out fine. Stay honest and reveal your assets.
Do Not Ignore Tax Consequences! Divorce may or may not create taxable events but you must report it on your tax return. Should you sell the house now to claim the capital gain exclusion? Who should be paying the mortgage until it sells? Should you take your spousal maintenance monthly or in a lump sum? What about retirement funds? An accountant can help to determine the best path for you on these questions.
Passive Observer of your Divorce? NO! Get control of this process, focus on practical things and work with your future Ex to get this divorce over! You can do this! There is a reason for this divorce and you are the master/mistress of your destiny. Your children need you now to be a responsible parent and wise decision making will save you time and legal fees. Listen to your attorney but you make the decisions!
Is Divorce your survival plan? Now that you have decided to divorce you must break it to your children. People engaged in a Divorce should be in survival mode. The person who will be your future “EX” is looking out for themselves and you need to look out for yourself and your children. YOU must insist within reason on getting what you need and deserve! Emotions and money do not mix! You must be able to take care of yourself and your family financially so look at all property division decisions very carefully and make good decisions to bring the divorce to a successful conclusion.
Prepare for the worst! When entering into a divorce, prepare yourself for the worst! If you are prepared for anything, than your fears will not cause you to panic and you will keep control of your situation. Outside of death, divorce is considered one of the worst emotional situations that a human being will ever experience!
How will you support yourself and the kids after divorce? Hopefully this is not a problem, but now would be a good time to get some career counseling at a community college, university or local job center. Having a fulfilling career is lucrative and helps your self-esteem!
Get Good Advice! Decisions you make now will affect the rest of your life. Find a good, knowledgeable attorney to help you though the rough spots. If you are emotionally a wreck, find a good therapist. If you feel there are hidden assets, hire a forensic accountant. Now is the time to get the best advice you can afford! You will have to live with your financial decisions for a long time.
Many Fathers are becoming more aware and knowledgeable about home, fatherhood and what this really means to the growth and mental wellness of their children. Whether they live with their child and mom, are a single parent, or as a divorced parent, or co-parent, studies in the last 10 yrs have shown the importance of the involvement of the father in promoting the child’s well-being, especially regarding issues of diet/nutrition, exercise, play and parenting behaviors. Most fathers are present at their child’s birth, even though 40% of births are between unmarried couples.
( AAPpublications.org/news/2016/13/Fathers061316 ).
Today’s fathers are taking a very active role in caring for their children and helping around the house. The share of stay-at- home dads has increased to 17% in 2016, up from 10% in 1989. 68% of fathers who stay at home to care for family are younger than 45. (Pew Report/2018/09/24/Stay-at-home-moms-and-dads). Younger fathers are leading the trend for more quality family time with their children. Sadly, 63% say they spend too little time with their kids, with only 36% says they spend the right amount of time with their children (www.pewsocialtrends.org/2017/10/18/methodology-12/). Could this be because many of these younger fathers were raised in divorced or single parent families?
Pew Research Center 6/13/2018 published a new survey on “7 Facts about American Dads” and this is very eye opening. Here are some of the more interesting items:
- 57% of Fathers see parenting as central to their Identity and 54% report parenting is rewarding all the time.
- Dads are more involved in child care averaging about eight (8) hours weekly on child care and 10 hours a week on household chores, which is about triple the time provided in 1965.
- Work-Family balance challenge for Fathers: 52% of Fathers say it is difficult, but 48% of dads say they need the income for the family.
- Who is the better Care Giver? Mom or Dad? 53% of Adults still say Mom, but 45% of Adults now say fathers and mothers do equally well.
- Most Americans (64%) say men and women have different approaches to parenting. 56% of Americans say the gender difference in parenting is a Good Thing.
- Seven-in ten adults say it’s equally important for new babies to bond with both their father and mother. 49% of adults said employers put more pressure on Fathers to return to work quickly after the birth or adoption of a new child.
This is really a good time to be a Dad! Public Opinions are changing about who is the better parent for the child’s growth, influence and advancement to healthy, positive adulthood. In the legal arena, States Legislatures and Courts are working on changing obsolete laws and statues favoring one parent over another and trying to work on having more even opportunities for both parents to equally raise their child.
If you are a father and having problems with having or enforcing your rights with your child, don’t give up. You are important to your child. Find a caring Attorney who can help.
Nacol Law Firm PC
Dallas, Tx 75231
A divorce can be grueling is transformed by law, probate, and insurance decisions made prior to divorce. It is important to know exactly what will happen to your will and life insurance if this misfortune happens to befall your family. The family unit is important and if it is fractured the question of what happens to “my will”, “my life insurance”, or “my trust” is a relevant and important one that needs to be answered.
If you are divorced from your spouse then your previous will may be in many aspects considered revoked automatically. Under the Texas Estate Code § 123.001 after a valid divorce, all provisions in a will, including all fiduciary appointments, shall be read as if the former spouse and each relative of the former spouse who is not a relative of the testator failed to survive the testator, unless the will expressly provides otherwise. The translation of this states: if you receive a valid divorce then your will is in many respects revoked and your spouse and stepchildren will receive nothing from the previous will. The one exception is if the will explicitly states that in case of divorce the previous spouse or children will still inherit. This revocation applies to fiduciary appointments as well. For instance if you have a trust and your spouse is the trustee, then she will be revoked from the trust in its entirety.
If you divorce your spouse, then your spouse’s beneficiary status pertaining to your life insurance will be automatically revoked. Texas Family Code § 9.301 states an automatic revocation upon divorce and lists three exceptions:
- If the divorce decree names the former spouse as a beneficiary
- The individual adds the divorced spouse as a beneficiary to the policy after the divorce
- The former spouse receives the life insurance as a “guardian” of the children
These are the exceptions for life insurance. If you decide to divorce your spouse unless further action is taken, the spouse will not benefit from your death regarding the life insurance.
Finally, the inheritance of a divorced spouse in reference to a trust depends on whether the trust is revocable or irrevocable. If you have set up a Revocable Trust then after the divorce your prior spouse will automatically lose his/her beneficiary status within the trust. On the other hand, if you set up an Irrevocable Trust then regardless of a divorce the prior spouse will still inherit and be considered a valid beneficiary. A divorce will have no effect on an Irrevocable Trust. If you decide to create an irrevocable trust, be sure to understand that your spouse will inherit the assets in the trust even after a divorce.
In a Texas divorce, the law protects you from unchecked gifts to your prior spouse and stepchildren with regard to your will, life-insurance, and revocable trusts. The prior spouse will not take from these unless one of the few exceptions apply. Divorces are riddled with complexities and it is prudent to seek advice from an experienced Texas divorce attorney during these proceedings to ensure that the divorced spouse is removed completely from your will and does not reserve an argument to acquire your assets post-divorce .
In a Texas child custody agreement, interstate jurisdiction refers to the state which has the legal authority to enforce and modify a Texas child custody agreement. The state that has jurisdiction decides your Texas child custody case.
For help with a child custody case that crosses state lines, contact a qualified interstate jurisdiction attorney to make sure your rights are protected!
Are you a Texas father that is having issues involving child custody, visitation rights, parental alienation, false allegations of abuse or false paternity claims?
It is important for you to know your legal rights as a father! And it is imperative that you enforce your rights for your children!
Call our Dallas fathers rights attorneys, Mark Nacol and Julian Nacol, for a consultation today!