Texas parents who have split still have to work with their former partners to ensure that the children are able to adapt well to their parents not being together. Developing an efficient parenting schedule is one way to do this.
When a marriage comes to an end in Texas, it can mean short-term financial issues for newly single individuals adjusting to shifts in income and expenses. A report by the Center for Retirement Research suggests that divorce can also impact readiness for retirement. Changes pertaining to how alimony payments are taxed could present additional challenges for divorced couples.
Texas residents and others going through a divorce may have the power to create a divorce agreement that meets their needs. However, there is no guarantee that a party to the deal will live up to its terms. If a former spouse is not paying child or spousal support as agreed, it could be possible to take legal action to have that person held in contempt of court.
While the overall divorce rate in Texas and nationwide has stabilized, the divorce rate among older Americans is increasing. In fact, nearly 25 percent of all divorces are now "gray divorces," meaning the couple is over the age of 50.
Divorces can be liberating for many Texas couples. Unfortunately, they can also be financially disastrous. However, a new trend is helping some spouses manage costs and come out of the divorce process relatively unscathed.
According to a survey of married and former spouses by UBS Global Wealth Management, most women leave investing and major financial decisions to their husbands. This can lead to major problems for an older wife in Texas who decides to get a "gray" divorce.
The divorce rate for people who are older than 50 in Texas has dramatically increased since 1990. Since that time, the divorce rate for older adults has almost doubled. People who are older and want to file for divorce should take some time to figure out how the end of their marriages might impact them financially.
Texas couples thinking about marriage may benefit by also thinking about divorce if they want to best protect their financial futures. With steadily high divorce rates, putting in place strategies for coping with a marriage ending seems just as prudent as having health or life insurance. For pragmatic couples, there are a number of tactics available to protect individual assets if divorce happens.
Texas estranged couples will need to address a number of financial matters during and after a divorce. For example, if they owned a home, it will likely need to be sold or refinanced. There may also be a retirement account that needs to be divided. Certain types of retirement accounts require a document called a qualified domestic relations order to avoid taxes and penalties. People need to understand this and any other rules around the division of these accounts.