At the beginning of a marriage, most couples never expect to find themselves in a situation of divorce in the future. It is because of this that going through a divorce is usually an overwhelming and difficult process for two spouses. This is not only emotionally, but financially as well. There are many costs that are associated with the process of divorce that can cause the proceedings to become expensive. In addition to this, a spouse’s assets can be subject to equitable distribution, which can result in a loss of certain finances. The possibility of losing financial stability is frightening, which is why it is crucial to be financially prepared for a divorce. When creating a financial plan, it can be beneficial to retain the services of an experienced New York divorce attorney for assistance.
Why Should I Make a Financial Plan?
A divorce can make for an uncertain future for any parties involved. Finances are an important part of a person’s life, as it provides them with stability. That is why it is important to make sure your finances are in order before going through a divorce so that you are able to support yourself once the divorce is over. This can be done by making a financial plan to be aware of the money you have as well as the money you need to have in order to maintain your lifestyle. This can be possible by making changes to your income or spending habits to ensure you have everything you need moving forward.
What Assets Should I Consider?
When a couple goes through a divorce, part of the proceedings includes the division of their assets. It is because of this that it is important to consider the assets you have when creating a financial plan. This can include the following assets:
- Income: In the division of assets, your partner may be entitled to a portion of your income. This may be through spousal support or child support agreements.
- Retirement assets: Typically, retirement money is not off-limits during the division of assets. If you want to receive part of your spouse’s retirement payments, you may have to file a qualified domestic relations order to recover them.
- Owned Property: Spouses usually share their real estate in most cases. This can include not only the family home but other properties such as vacation homes.
- Jointly-Owned Businesses: Spouses who run a business together should ensure that it is protected from being subject to division in a divorce. This can be accomplished by drafting a shareholder agreement with your spouse.
- Debts and Mortgages: Mortgages and individual debts can influence a judge’s decision regarding assets during equitable distribution. This can include credit cards, loans, business expenses, and more.
Contact our Firm
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.