When people in New York decide to get divorced, they may understandably feel overwhelmed by the financial aspect of the process. Unfortunately, making some critical financial mistakes during a divorce proceeding can have long-term repercussions. Here are a couple of the most common errors, along with some tips about how to avoid them.
First, sometimes those going through the divorce process fail to get all of the paperwork needed early on. These documents include Social Security statements that show a spouse’s record of earnings as well as his or her anticipated future benefits. Any receipts that document home improvements, along with paperwork showing how much was paid for the marital home and other major assets are also important to collect. It’s also smart to gather all financial accounts’ numbers as well as their balances.
Sometimes divorcing spouses fail to pay attention to the tax consequences of their divorce-related decisions. The reality is that assets like retirement accounts, investments and property might have similar face values yet trigger varying tax treatments down the road. This can ultimately impact how much these assets are worth.
Fortunately, a divorce attorney in New York can provide the guidance needed to make informed financial decisions during this type of family law proceeding. For instance, an attorney can help the client to choose the best marital assets to keep as well as negotiate spousal support in the most personally favorable manner possible. The attorney’s ultimate goal is to make sure that the client’s rights and best interests are protected long term.