How to avoid financial derailment following divorce

How to avoid financial derailment following divorce

| Jun 15, 2021 | Divorce |

The process of getting divorced in New York can understandably be challenging from a financial standpoint. However, it is possible to avoid digging a large financial hole during this life-altering process. Here are a couple of tips for financially staying on track — or at least near the track — while going through the divorce process.

Focus on the financial details

One of the most important steps to take to protect one’s financial health during divorce is to gather all important data and details early on. This information can be found on documents such as tax returns, pay stubs and financial statements. Benefit information and data regarding liabilities and assets are also important to collect. All of these details will help to inform decisions regarding property division and even spousal support moving forward.

Keep retirement benefits in mind

In addition, it is critical for divorcing individuals to understand the rules associated with their retirement plans as well as Social Security. For instance, federal law allows state courts to divide military retirement as property. In addition, in some circumstances, Social Security allows a person to obtain retirement benefits based on the record of his or her ex-spouse’s income. An attorney can explain such rules to divorcing individuals based on their unique situations.

Keep the emotions out of the way

It is also important for divorcing individuals to avoid letting their emotions get them off track. Instead of rushing into financial decisions during the process of ending one’s marriage, a divorcing party would be wise to rely on the guidance of an attorney from the start. An experienced attorney will help his or her client to make educated decisions with the goal of ensuring that the divorcing individual maintains as strong of a financial footing as possible in the years ahead.