Thinking about remarriage post-divorce or facing a pregnancy, either personally or with your partner, are pivotal life events that can significantly impact your financial future. It’s crucial not to approach these decisions lightly, as they can shape your financial landscape in profound ways. Therefore, thoughtful consideration and family law financial planning are essential to navigate these life-defining moments with foresight and preparedness, ensuring your financial well-being both now and in the future.
The attorneys with the Law Office of Bryan Fagan, PLLC, would like to single out a handful of these life events and discuss with you the impact each can have on your financial future.
Beyond the superficial sound bites like “Having a kid is expensive!” or “Marriage is grand, but divorce is fifty grand!” we would like to share our perspective on them so that you can be a well-educated and informed person in this regard.
Getting married and starting a family
Clicking on our blog today might surprise you with family law attorneys discussing marriage rather than divorce. Deciding to marry or live together as a couple and then have children requires informed consideration of associated issues. Many people have limited financial flexibility and can’t afford to make poor decisions in these matters, as they often come with significant financial consequences. This is especially true for those who have been divorced before; remarriage necessitates active involvement in financial decision-making with your spouse to avoid potential impacts on your financial stability.
Remember that most of the property and income you and your spouse acquire during your marriage will be considered community property when you get married. The property you came out of your first marriage with or owned before you were ever married is your separate property. The same can be said of the property owned by your spouse-to-be.
If you came out of your first marriage with debts that you did not specifically take out, it might be a good idea to speak to your spouse regarding your family’s opinions and thoughts on debt. What debts need to be paid off?
Would you all be utilizing debt in the future? The most challenging part of paying debt continually is that you cannot use that money to build wealth for the future. Being bitten by the debt bug may be enough to swear you off the subject altogether. Communicate this to your fiancé and see where the discussion takes you.
Decision making regarding property
Once you get married again, the ownership associated with your and your spouse’s property changes; if you are interested in keeping as your separate property an item that would otherwise be considered to be community property, your best bet is to draft a premarital agreement with your spouse before getting married. This legally binding document designates that particular property as either community or separate.
For instance, if you incurred a debt you incurred in your first marriage that you and your fiancé agree should be separate and not subject to division in your divorce, then you can isolate that debt as your individual property in the premarital agreement.
It may not be romantic and it may be challenging to discuss, but you may want to ask your fiancé to pull their credit report, and you can do the same. Take a look to verify all your accounts are correct and to confirm any balances with creditors. Now is a better time to find this information out than after you have said, “I do.” Plan instead of going back in time to erase a prior mistake.
Finally, learn from your fiancé whether or not he has any child support payments that are outstanding or any responsibility to pay child support at all. You would be surprised to learn that some people find out that their spouse has a child from a prior relationship only after they have married one another. This is a financial commitment that can stretch years into the future depending upon the age of your fiancé’s child.
Financial issues related to children
If you don’t have children currently but are considering starting a family, you should be aware that time and money before the rarest and the most important of commodities once you bring a little life into this world. It will seem like you can never have enough of either.
My advice in this section is not intended as legal advice but rather as guidance to help you avoid mistakes that could lead you to need a family law attorney later on.
It is essential to keep in mind that when you decide to have a child, you or your spouse may need to cut back your hours worked or even change jobs entirely. Again, ensure that you and your spouse talk about these issues before having a child so that there are no problems once your little one is born. Arguments and conflict in an already high-stress environment can lead to a breakdown of your marriage.
Above all else, focus your attention on your child rather than on ancillary issues that could have been resolved before your child was born.
Financial issues related to divorce
From a financial perspective, it is not uncommon for a stable family to find itself doing a complete 180-degree turn if either you or your spouse files for divorce. Aside from the emotions associated with divorce, your divorce will be a financial transaction.
As crude, crass, or unfair as it seems, that is an inescapable truth from my experience. Whether it is dividing up the property, income, or retirement savings, there are many financial implications connected to your divorce.
In Texas, the court considers retirement income accrued during your marriage as community property, making it subject to division. There are specific requirements for dividing many retirement plans that your attorney can discuss with you. You will need to learn what retirement plans you and your spouse have under your names and the requirements of each plan to divide them upon divorce.
Additionally, if you and your spouse were married for more than ten years, you can apply for Social Security benefits based on your ex-spouse’s work record, as long as you remain single when you apply. While your ex-spouse is alive, you can collect half of the benefits they are entitled to. You can receive benefits based on your or your ex-spouse’s work history- but not both.
Conclusion
Whether you’re contemplating remarriage post-divorce or facing the prospect of pregnancy, family law financial planning plays a crucial role in safeguarding your financial future. These life-changing events require careful consideration of their long-term implications, ensuring that your decisions align with your financial goals and obligations. Consulting with a knowledgeable financial planner or family law attorney can provide invaluable guidance tailored to your specific circumstances, helping you navigate potential challenges and seize opportunities with confidence. By prioritizing financial planning alongside personal decisions, you can pave the way for a secure and stable future for yourself and your loved ones.
More on the financial implications of family law issues to be discussed tomorrow.
Stay tuned with us tomorrow, and we will complete our discussion on family law issues and their potential impact on your life from a financial perspective. After reading our blog today, please contact the Law Office of Bryan Fagan, PLLC, for a free-of-charge consultation if you have any questions. Our licensed family law attorneys can meet with you to answer questions and discuss your specific circumstances.
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Law Office of Bryan Fagan, PLLC | Houston, Texas Divorce Lawyers
The Law Office of Bryan Fagan, PLLC, routinely handles matters that affect children and families. If you have questions regarding divorce, it’s essential to speak with one of our Houston, TX, Divorce Lawyers right away to protect your rights.
Our divorce lawyers in Houston, TX, are skilled at listening to your goals during this trying process and developing a strategy to meet those goals. Contact the Law Office of Bryan Fagan, PLLC by calling (281) 810-9760 or submit your contact information in our online form.
