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Divorce-related finances can be complicated

On Behalf of | Jun 7, 2018 | Divorce, Firm News |

Dissolving a marriage can be both financially and emotionally challenging. This is the case no matter how long or short of a period two people have been married. A couple of tips may help those going through divorce in New York to take care of themselves financially.

First, closing joint credit accounts from the start is essential. Both parties ideally should stop racking up debt in both names once the divorce papers have been filed. If they continue to accrue debt through joint accounts, they will only damage their credit scores and make their divorce proceeding even more complicated.

Second, it would behoove a divorcing spouse to open up a separate checking account as well as his or her own savings account as soon as possible. Saving money might seem counterintuitive during a divorce proceeding, as one’s financial situation might have changed significantly as a result of the marital breakup. However, even small amounts can add up and may prove helpful for covering unexpected expenses down the road.

Although the financial aspect of divorce can be complex, two divorcing spouses may simplify it by working out their issues through divorce mediation or negotiation rather than going to divorce trial. Outside of court, the two parties can try to reach a settlement agreement that satisfies both sides — a process that is typically faster, less expensive and less acrimonious than traditional divorce litigation. An attorney can provide the guidance needed to pursue a personally beneficially divorce settlement agreement in New York.