When going through a divorce in Texas, many people are not careful enough about a few key aspects of the process, and that can be financially costly. These are emotionally challenging times, but the financial impact is large enough that it is important to be careful when it comes to divorce.
What to avoid during a divorce
There is a lot that can go wrong in a divorce. One of the most important things to do is get a detailed and complete accounting of all assets. Many people forget about or ignore the handling of retirement assets, debts, hidden assets and misvalued assets, all of which can dramatically alter the financial divide. Without a complete picture of all assets and debts, it is easy for one spouse to lose out on their share.
The divorce process itself is also fraught with legal issues. For example, many people don’t bother with mediation or arbitration. However, these can make the divorce proceed much faster and with less expense than by doing it all through the courts. Even worse, some people try to go without lawyers entirely, leading to expensive legal mistakes, delays and bad outcomes in terms of assets, child support, custody and so on. All of these pitfalls can make the divorce take longer and cost more money at least, and at worst, they can lead to significant losses.
The more assets are involved and the higher the net worth of the couple, the greater the risks are of a bad outcome from a mistake. Divorce is a complicated and difficult time, but it has to be done correctly to minimize the financial downside.