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Knowing financial situation important step in getting a divorce

On Behalf of | Jul 18, 2019 | Firm News |

One of the hardest parts of getting divorced in New York is dealing with the financial impact of this major life event. This is the reason it is important for people who are about to go through divorce to closely examine their monetary situations. Important areas to focus on include income, debt and expenses.

Income refers to any wages that the two spouses are bringing in, coupled with any money received through partnerships or investments.  The latest tax return may provide an idea of how much household income the spouses generate. Furthermore, recent credit reports may help with highlighting the amount of debt that must be addressed. This could include a mortgage, car loan, student loan or credit card debt, among other financial obligations.

Expenses refer to anything that the two parties spend money on in a given month. A current list of expenses can be generated with the help of an existing budget. While putting together a comprehensive expense list, divorcing individuals may want to identify all expenses specific to their children, like college tuition or tutoring expenses. This information can help them to more effectively tackle the matter of child support during divorce proceedings.

If the spouses can see eye to eye on how to divide their debts and property, they can work together to create a mutually satisfactory settlement agreement. In this way, they can avoid further court intrusion. Meanwhile, if they cannot agree on how to handle these matters, they must go to court and have a judge rule on them. In both scenarios, a divorce attorney in New York can provide the direction needed to pursue the best outcome possible for a divorcing individual.