Why is it important to be proactive with your divorce? Divorce is a daunting step. The stress or dread it can generate often results in differing reactions for people in Frisco, McKinney and surrounding areas.
Some are afraid to take the plunge and file for divorce, even though they know their marriage is over. Others belong to the “hurry up and get it over” camp, understandably wanting the pain to end quickly.
However, when parents end a marriage, it’s crucial to protect their children’s best interests, as well as their own, and fight for the best financial outcome now and in the future.
Make a financial checklist for your kids’ well-being
Keeping a sharp focus on your children’s best interests during such an emotional time can be challenging but is essential. Here are some financial issues to keep in mind:
- Choose health insurance wisely: Select the coverage that best fits your child’s needs, such as whether their preferred providers are included in one parent’s plan but not the other’s. Each parent’s share of health care costs, including premiums and out-of-pocket expenses, should be stipulated in the divorce decree.
- Child support modifications: Monthly child support payments are determined through a formula dictated by Texas law. However, circumstances often change, and you may have to go to court to modify the amount if the non-custodial parent’s income or the child’s needs drastically change.
- Create an emergency fund: Transitioning from a two-income household to a single parent can be challenging. Still, the goal should be to build a cash reserve of six to 12 months to deal with unexpected expenses. It not only helps you cope with these sudden costs but exhibits financial responsibility to the judge deciding conservatorship.
- Draft estate plans: Each divorced parent should create a will or trust for their children in case one or both die. The plan should include naming a guardian you agree upon to take care of your children’s emotional and financial needs.
Don’t leave your children’s future to chance
Getting divorced is one of the most stressful experiences a person will ever face, especially when they have kids. However, getting organized and preparing for the financial realities of your new life can reduce much of that anxiety.
Having experienced legal guidance is vital to making sure you don’t leave any money on the table you are entitled to receive. But being actively involved in the process can lead to better outcomes and be an empowering experience.