Divorce can be stressful and emotional, but taking control of your finances can help you feel more secure. Dividing property, assets, and debts takes planning. Having a clear financial plan gives you a stronger position to get what you deserve.
Whether you are already filing for divorce or just thinking about it, gathering important financial documents is key. Use our checklist below to organize your finances, prepare for settlement talks, and protect your money during divorce.
1. Collect and Organize All Financial Documents
Your divorce roadmap needs two main points of reference: where to start and where you’ll end. You can control your starting point by getting a clear picture of your property, accounts, and debts. You’ll need to understand what counts as separate property and what is community property under Texas law.
Start by assembling documents for yourself and your spouse, if possible. Keep physical copies to share with your attorney for the following:
- Checking and savings account statements (last 6-12 months)
- Investment, retirement account, and digital asset account statements (last year)
- Pay stubs and other proof of income
- Tax returns (last 3-5 years)
- Mortgage and other real estate documents
- Credit card, car loan, and other personal loan statements
- Business loans and financial documents
- Home, auto, and life insurance policies
- Estate plan documents, (wills, trusts, and Powers of Attorney)
- Social Security benefit statements
- Credit reports
- Inventory and valuation statements for jewelry, collectibles, artwork, or furniture
- Vehicle titles
Even with digital records, print copies and store them safely. Gathering these documents early reduces the risk of losing proof of assets or liabilities.
2. Document All Personal Property and Household Items
In Texas, the court treats most property a couple owns as marital property. This means it can be divided in a “just and right” way based on the evidence you provide. If you want to keep something as separate property, you must show proof of its history with documents or records.
For valuable personal or household items, document everything before anyone moves out or takes possessions. Take photos, describe the item’s condition, and note its current market value. Items to document may include:
- Electronics, such as stereos, game consoles, televisions, or recording equipment
- Musical instruments
- Appliances
- Painting, sculptures, rare books, or art installations
- Jewelry and watches
- Couture or designer clothing
- Collectible items
- Vintage vehicles or equipment
- Heirlooms, including furniture
If you want to keep your property safe, consider putting valuable items in a safe deposit box or leaving them with a trusted friend or family member. Be sure to document where you placed them and what you moved. This helps protect your possessions and avoids any claim that you are hiding assets from your spouse.
3. Prepare for Child Conservatorship Arrangements
If you have children, you’ll need to prepare a parenting plan with your spouse and agree on child conservatorship arrangements. Key decisions in divorce include who will have legal and physical custody of the children, visitation schedules, and child support orders.
Texas judges focus on the best interests of the child above everything else. The more information and documentation you provide, the stronger and more effective your parenting plan can be.
Obtain copies of the following documents for each child:
- Certified copies of birth certificates
- Passports
- Driver’s licenses, ID cards, or student IDs
- School attendance records and report cards
- Medical information, including specific health needs
- Records of your daily interactions with each child
- Calendars showing doctor’s appointments, extracurricular activities, and playdates
The court will consider each child’s relationship with each parent to establish custody orders. Presenting the items above allows you to demonstrate a strong connection with your child. In addition, Texas law requires judges to consider any history of domestic violence or child abuse when making custody decisions.
4. Protect Your Privacy
This item in our checklist can make it easier to start your new life once the divorce is final and protect your privacy immediately. This can be essential if there is a history of financial abuse, domestic violence, or dishonest behavior from your spouse.
Follow these steps:
- Get a private post office box in your name only: Use your current legal name and documents. You can update it later if you change your name after the divorce.
- Open a new bank account in your name only: Use this account to relocate funds as needed and establish it as separate from your jointly-owned accounts.
- Create a new email account: Start a new account for communications with your attorney and other parties. Update your online accounts with this new address.
- Change all your passwords: Update all your online accounts on all your devices with new passwords.
We suggest using an automated password generator that prevents you from using passwords your spouse could guess. Keep a copy of the new passwords in a safe place. If you have experienced domestic violence, you may need help from a friend or family member to complete these steps prior to leaving the marriage.
5. Assess Your Housing Situation
Divorce often forces a couple to sell the marital home when neither one can afford to keep it on their own. If you need to move into an apartment or new home, make sure it provides a safe environment for your children. Think about how close it is to their school and your job, because Texas courts consider these factors when deciding conservatorship and custody arrangements.
Research potential utility costs for your new living arrangements, so you can plan for the financial impact. Even if you need to move in with relatives for a short while, don’t focus on whether this is a “step backward.” Concentrate on what choices will provide you and your children the best foundation for moving past divorce and into the next phase of your lives with the most stability.
6. Consider Legal Representation as a Benefit, Rather Than a Cost
Although hiring a divorce attorney does require paying for their time and experience, doing so can end up saving you a great deal in the long run. If your divorce is contentious, it can last for years in negotiations and court before coming to an end. You could be unable to present your side for a just and right division of property, or end up unable to see your children as much as you wish.
Your attorney can connect you with resources to value property, interpret insurance policies, and uncover hidden assets. To learn more, contact Terry & Roberts to arrange a consultation today.