While the divorce rate is no longer on the rise in the United States, about 40% of marriages still end in divorce. The divorce gap is very real for women, in that the female spouse sees her income drop by around 20% and stay low for the rest of her life, while the male spouse sees his income after a divorce increase by more than one-third. However, a new study shows one interesting caveat to the divorce gap: Divorce may increase the overall rate of homeownership for women. If you have questions about divorce and the division of assets in Dallas, the office of Bruce E. Turner with Bennett, Weston, LaJone & Turner is here to help.
New Divorce Study
Published by the Center for Retirement Research at Boston College, the new study entitled “How Does Divorce Affect Retirement Security?” uncovered an interesting fact about a divorced woman’s financial wellbeing. The study found that divorced women were actually better off in terms of accumulated assets than single, never married women because divorced women are more likely than never-married women to own a house.
Owning a home, instead of receiving other assets in a divorce, can also potentially help divorced women save for retirement. This is because it is more difficult to tap into the equity of a home to pay for current expenses than to liquidate other marital assets like pension funds. The study did not just look at the family’s primary home. Ownership of a vacation home or secondary property is considered to be as effective as owning the primary home for the purposes of financial security and well-being. Of course, it’s not a certainty that the wife will be awarded real property during a divorce settlement. That’s why it’s vitally important to have an experienced asset-division divorce attorney on your team.
Texas Division of Assets
Texas operates as a community property state, which means that all property acquired during the course of the marriage, called community property, is split between the divorcing spouses. This includes tangible property like homes, cars, and furniture, as well as less tangible property like retirement accounts and pension plans. All property that was brought into the marriage by each spouse is considered nonmarital property and is exempt from the division of assets. Texas courts divide the community property in a way deemed “just and right,” meaning that the division of assets must be equitable under the circumstances of the marriage. There are many factors that are considered when dividing assets, including the reason for the divorce, disparity in earning power between spouses, whether there are any children, each spouse’s health, the length of the marriage, and more.
Call the Office Today
Determining which assets you receive in a divorce can make or break your financial future, so it is important that you have an experienced divorce attorney by your side throughout this complicated legal process. Call the office or contact us online today to schedule a consultation.