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Preventing financial ruin when getting a divorce

On Behalf of | Oct 6, 2016 | Divorce, Firm News |

Celebrities aren’t the only ones getting divorced these days. Many New York residents go through the divorce process every year, dividing their assets and arranging for custodial arrangements when children are involved. Although each divorce is unique, what follows are several tips that may help to improve the odds of divorcing individuals coming out of the process on relatively stable ground financially.

One of the first things to consider is assessing one’s marital assets. Taking stock of account balances as well as the value of the couple’s joint assets is crucial, but it is recommended not to move them. Resisting the urge to make large purchases or withdrawals before or during a divorce proceeding may prevent the judge from seeing a potential red flag, experts say.

Another important aspect to consider is tax implications. After a couple’s house, retirement funds are usually the second-most valuable asset an individual owns. However, if one thinks that it’s as simple as cashing out and then splitting the proceeds, that individual may be in for a rude awakening. If not completed properly, the individual could potentially pay a penalty in addition to taxes.

New York residents contemplating getting a divorce know that, as divorce can be expensive, messy and emotionally draining, it is wise not to go it alone. Some experts recommend seeing a therapist before divorce proceedings commence can help to go into the situation with clear, healthy expectations, while others say that enlisting the help of a financial planner is essential. Either way, an experienced attorney is at the front and center of every strong divorce team, as an attorney will ensure that the individual’s legal rights are upheld for the duration of the proceedings.

Source: money.usnews.com, “10 Ways to Prevent a Divorce From Ruining Your Finances“, Maryalene Laponsie, Sept. 29, 2016