Divorce can understandably be a high-stakes process from a financial standpoint. This is especially true for individuals in New York who have high incomes and/or high-net-worth assets. However, avoiding a couple of key monetary mistakes during the divorce process may help such individuals to protect their financial best interests long term.
Not being realistic
One of the most common financial mistakes that divorcing individuals make is trying to maintain their pre-divorce standards of living after the divorce process. In some situations, people can indeed maintain their standards of living following divorce due to receiving spousal maintenance or generous asset awards. However, in the majority of cases, this is not possible. For this reason, it is wise for divorcing individuals to create budgets that reflect their new financial realities post divorce and reduce their living expenses accordingly.
Holding on to the family home
Yet another potentially costly mistake that some individuals make during divorce is to try to keep the family home moving forward. The family home can certainly provide emotional stability for a divorcing individual and his or her children. However, if the divorcing party cannot cover the mortgage payments, homeowner’s insurance, property taxes, maintenance costs and utilities on his or her own, this person may not be able to afford the home long term.
How an attorney can help
Because the ending of one’s marriage can be an emotional process, consulting with an attorney can prove invaluable for many reasons. An experienced attorney can help with making educated decisions regarding whether to keep the family home versus other assets during the property division process, for example. Seeking out this kind of help and support can ultimately increase the odds of achieving the best possible outcome for those facing or going through a divorce and can allow them to more smoothly transition toward a brighter future.