Many individuals in New York find themselves facing divorce despite never expecting themselves to be in such a position. Fortunately, even though a marital breakup may come as a surprise in some situations, divorcing individuals can take steps early on in the process to protect their financial futures. Here are a couple of tips for navigating the financial aspect of divorce.
Debt and retirement savings
When individuals embark on the divorce process, it would behoove them to track how much outstanding debt they have right away. They can find out this information by reading their monthly statements for their credit cards, car loans and mortgages. Then, they should ideally develop budgets to determine if they can afford their debt while supporting themselves post divorce.
In addition, divorcing individuals may want to set up retirement accounts as soon as possible if they do not currently have them. Likewise, those whose accounts are dangerously underfunded might want to create plans to set more money aside each month for their golden years. This is especially important for those over the age of 50, as they do not have as many years to save for retirement as younger workers do. Financial advisers can help divorcing parties to implement retirement savings strategies that will work best for their unique situations.
Where to turn for support
An experienced family law attorney can further help divorcing individuals in New York to safeguard their finances long term by advising them on how to handle divorce matters, including asset distribution and debt division. For instance, one’s attorney can help them to figure out whether it would be best to hold onto the family home or give it up in exchange for more liquid assets, like cash. A savvy attorney will provide the guidance needed to accomplish a comprehensive and fair divorce that ultimately addresses his or her clients’ short- and long-term objectives.