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Income, credit and the Texas divorce

When a Texas couple decides to get married or divorced, the decision is typically an emotional one. The couple is either in love or cannot bear the thought of being in the same home as the other. While both of these circumstances can often lead to rash, emotional decisions, they also lead to financial ones. The financial decisions made throughout the divorce process can have a significant impact on each individual.

When it becomes evident that a divorce is in the near future, one may want to begin separating oneself financially from the other spouse. If both paychecks are being deposited into a joint account, one may want to consider opening an individual account and having income deposited into it. By doing this, one will begin to develop a good idea of his or her own financial status. Additionally, this will prevent the other spouse from being able to access this income and remove it from the joint account.

Another area in which one will want to financially separate is with joint credit accounts. If the other spouse is simply an authorized user of a credit account, that status should be terminated so that he or she cannot add any more to the balance owed. This can be done by contacting the creditor.

If a credit account is jointly held, one will want look into the possibility of closing the joint accounts. If there is a balance on these accounts, it may be necessary for a new account or accounts to be opened for each individual. The couple will also need to decide which spouse will be responsible for which debts and then move these debts to the new individual accounts.

While it is not always easy, it is important for the Texas couple to attempt to separate emotional and financial decisions. The financial decisions made during this time period can have a far-reaching affect on the individual long after the divorce is finalized. Each individual will want to protect him or herself throughout the divorce process.

Source: thefiscaltimes.com, "6 Money Mistakes to Avoid When You're Getting a Divorce", Kelli B. Grant, Aug. 26, 2016

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