Getting divorced is oftentimes a challenging process due to the emotional toll it can take on a person. In addition, a few financial mistakes during a divorce proceeding can cause a newly divorced spouse to be in much worse shape than anticipated. The more tightly two spouses’ finances are intertwined in New York, the more important it is to pay close attention to the process of untangling them.
One area of divorce that can be challenging is dealing with the family home. Staying in the family home may seem like an easy choice, as it eradicates the need to find new housing and accrue the costs that come with it. However, keeping the marital home usually does not make sense financially due to the exorbitant cost of keeping up a home.
Another mistake that spouses sometimes make during the divorce process is keeping the house instead of liquid assets. A future ex may offer the other the chance to keep the house while he or she keeps a bank, brokerage or retirement account that is valued at the same quantity of money. However, the reality is that even though the house and the account may feature the same monetary value on paper, a house will always be a lot more expensive to maintain.
If two spouses who are going through divorce in New York can achieve a settlement on their own at the negotiation table — a settlement that is fair to both parties — they can avoid having to go to trial to let a judge decide what will happen to their marital home and other assets. However, if negotiation is ineffective, a judge will have to step in and make these types of essential decisions for the couple. Whether one is going through negotiation or going to trial, an attorney will strive to ensure that the most personally favorable outcome is attained.
Source: cnbc.com, “When it comes to divorce, not all assets are equal“, Sarah O’Brien, Sept. 22, 2017