Why Financial Planning Matters More After a Contested Divorce - The Law Offices of Chris Schmiedeke

Introduction: Divorce, Timing, and Money

For couples in their 50s and 60s, divorce often looks very different than it does for younger families. You’ve likely built decades of shared assets—retirement funds, a home, maybe even a vacation property. Your children may be grown, but that doesn’t mean divorce is simple. In fact, for empty nesters, the process can feel more overwhelming.

One question many clients ask us right away is: “How long does a contested divorce take in Texas?” The answer isn’t always easy. Unlike an uncontested divorce, which can sometimes be finalized in a few months, a contested divorce can stretch for a year or more depending on court schedules, disputes over property, and how willing (or unwilling) spouses are to compromise.

And while the legal process itself can feel drawn out, the financial consequences often last a lifetime. That’s why financial planning isn’t optional after a contested divorce—it’s essential.

This blog explores why financial planning matters more than ever after divorce, especially for empty nesters. We’ll look at how contested divorces affect retirement funds, property division, health care costs, and even lifestyle choices in later years.

How Long Does a Contested Divorce Take in Texas?

Before diving into financial planning, let’s address the big question: how long does a contested divorce take in Texas?

Waiting Period: Texas law requires a minimum 60-day waiting period from the date of filing before a divorce can be finalized.
Contested Cases: Most contested divorces last 6–18 months, though complex financial cases can take longer.
Factors That Extend the Timeline:
- Disputes over property division
- Retirement account valuation and division
- Mediation that fails and leads to trial
- Court backlogs

For empty nesters, time matters. The longer the case drags on, the more legal fees accrue—and the less certainty you have about your financial future.

Why Financial Planning Becomes Critical After Divorce

Many empty nesters assume that because their children are grown, divorce will be straightforward. But in reality, the financial stakes are higher than ever.

Here’s why:

Limited Time to Recover Financially
At 55 or 60, you don’t have the same career runway as a 35-year-old. Mistakes in asset division or retirement planning can’t always be undone.
Retirement Is Closer Than You Think
Divorce may cut your retirement savings in half, forcing you to rethink when and how you’ll retire.
Healthcare Costs Loom Large
Medicare doesn’t begin until 65. If you divorce before then, you may need to secure independent health insurance.
Longevity Risk
Empty nesters often live decades after divorce. Without careful planning, you could outlive your assets.

Property Division in Texas and the Empty Nester Challenge

Texas follows community property law, meaning most assets acquired during the marriage are considered marital property and divided fairly. But “fair” doesn’t always mean “equal”—especially in contested divorces.

Common Property Division Issues for Empty Nesters:

The Family Home: Many empty nesters feel pressure to keep the marital home for stability, but this can lead to being “house rich and cash poor.”
Vacation Properties or Timeshares: These assets can be tricky to divide and often come with ongoing costs.
Business Interests: If one spouse owns a business, valuing it fairly is critical.
Debt Division: Retirement-age couples may still carry mortgages, credit card debt, or even loans taken for their children’s education.

📎 Helpful resource: Texas Family Code – Chapter 7: Award of Marital Property

Retirement Accounts: Your Future on the Line

For empty nesters, retirement savings are often the most valuable marital asset. Unfortunately, dividing them incorrectly can result in taxes, penalties, and financial shortfalls.

401(k)s and Pensions: These require a Qualified Domestic Relations Order (QDRO) to divide properly.
IRAs: Division can be tax-free if done as a “transfer incident to divorce.”
Social Security Benefits: Even if divorced, you may be entitled to spousal Social Security benefits if you were married for 10 years or longer.

👉 Example: A spouse who keeps the house but gives up half the retirement savings may later discover that maintaining the home costs more than anticipated, while the other spouse enjoys steady retirement income.

📎 Helpful resource: U.S. Department of Labor – QDROs

Health Insurance and Medical Costs After Divorce

Healthcare is one of the biggest concerns for divorced empty nesters. If you relied on your spouse’s employer-sponsored plan, you may suddenly find yourself uninsured.

Options After Divorce:

COBRA Coverage: Temporary but often expensive.
Marketplace Plans: Available under the Affordable Care Act, but premiums can be high.
Medicare: Only available at 65. If you’re younger, you must bridge the gap.

👉 Tip: When negotiating settlements, factor in healthcare costs—not just asset value. A settlement that looks fair on paper can quickly become unfair if one spouse faces $800/month in health premiums.

📎 Helpful resource: HealthCare.gov – Divorce and Health Coverage

Estate Planning After Divorce

Divorce doesn’t just end a marriage—it reshapes your entire estate plan.

Update Beneficiaries: Retirement accounts, life insurance, and payable-on-death accounts often name a spouse by default.
Revise Your Will: Ensure your estate reflects your new wishes.
Consider Long-Term Care Planning: Divorce may affect your ability to afford or qualify for long-term care in the future.

👉 Example: An empty nester who forgets to update life insurance beneficiaries may accidentally leave a former spouse with the entire payout.

Emotional vs. Practical Financial Decisions

Many empty nesters face a unique emotional hurdle: decades of shared history. This often leads to emotional decision-making in divorce settlements.

Keeping the marital home to maintain memories.
Agreeing to uneven divisions out of guilt.
Avoiding necessary asset liquidation because it “feels wrong.”

The problem? Emotional decisions often lead to financial instability. Financial planning helps bring objectivity into an emotionally charged process.

Mistakes Empty Nesters Make in Divorce

Underestimating Retirement Needs: Forgetting that retirement may last 20–30 years.
Fighting for the Wrong Assets: Keeping the house but sacrificing steady retirement income.
Ignoring Tax Consequences: Not all assets are taxed equally—$100,000 in a Roth IRA is not the same as $100,000 in a traditional IRA.
Forgetting Health Insurance Costs: A major expense that can erode savings quickly.
Failing to Update Estate Plans: Leaving an ex-spouse as beneficiary.

Building a Post-Divorce Financial Plan

Here are the key steps every empty nester should take:

Reassess Your Budget: Adjust to single income living.
Review Retirement Projections: Work with a financial advisor to test different retirement timelines.
Secure Insurance: Health, life, and long-term care insurance all matter more post-divorce.
Plan for Taxes: Your new filing status may increase your tax bill.
Build an Emergency Fund: Divorce legal fees and transition costs can deplete savings.

Frequently Asked Questions (FAQs)

How long does a contested divorce take in Texas?
Most last 6–18 months, though complex property or financial disputes can extend the timeline.
Is there a waiting period for divorce in Texas?
Yes, Texas requires a minimum 60-day waiting period from filing before divorce can be finalized.
Can I keep the family home after divorce?
Yes, but consider whether you can afford ongoing mortgage, taxes, and maintenance costs on a single income.
How are retirement accounts divided in a Texas divorce?
Typically through QDROs or tax-free transfers, depending on the account type.
Will divorce affect my Social Security benefits?
If you were married at least 10 years, you may still qualify for spousal benefits even after divorce.
Do I need to update my will after divorce?
Absolutely. Divorce does not automatically change your estate planning documents.
What happens to health insurance after divorce?
You may qualify for COBRA or need to purchase an ACA marketplace plan until you reach Medicare age.
How do I protect myself from running out of money in retirement?
Work with a financial advisor to rebalance assets and adjust your retirement timeline if necessary.
Can my spouse hide assets in a contested divorce?
They may try, but full financial disclosure is required. Your attorney can request discovery and subpoena records.
Is mediation worth it in a contested divorce?
Yes, even if not fully successful, mediation can narrow disputes and reduce costs.
Can I change beneficiaries before my divorce is finalized?
Maybe. Check with your attorney, as some restraining orders limit changes until the divorce is complete.
How can I estimate my post-divorce expenses?
Start by reviewing your current budget and adjusting for single living, healthcare, and retirement contributions.
Do I need both a lawyer and a financial planner?
Yes. Your lawyer protects your legal rights, while a financial planner helps secure your long-term stability.
Can divorce delay my retirement?
It can. Many empty nesters must adjust retirement age or lifestyle expectations after divorce.
Should I sell my home during divorce?
It depends on market value, emotional attachment, and financial practicality. Selling can sometimes provide both parties with more flexibility.

Conclusion: Stability Through Planning

Divorce is never easy, but for empty nesters, it comes at a particularly critical time in life. With retirement on the horizon and limited years to rebuild savings, financial planning matters more than ever after a contested divorce.

And while you may wonder “How long does a contested divorce take in Texas?”—the more pressing question is, “How prepared will I be financially once it’s over?” With the right strategy, legal support, and financial planning, you can move forward with clarity and confidence.

📞 Contact the Law Office of Chris Schmiedeke today to schedule a confidential consultation and begin securing your financial future.