For individuals considering divorce in New York, it is critical that they assess not only the emotional consequences but also the financial ramifications of the divorce process as soon as possible. Fortunately, gathering the appropriate documentation, ranging from tax returns to bank statements, can help with this. Here are a couple of important areas to focus on when preparing for the financial impacts of divorce.
When collecting financial documents, divorcing individuals should ideally look for paperwork on assets such as bonds, stocks, life insurance and mutual funds. This is because these assets will need to be distributed in an equitable manner between the two parties as part of the divorce proceeding. Other financial assets that will need to be divided include pensions, stock options and retirement plans. An attorney can help a divorcing individual to determine any early distribution penalties or tax implications associated with splitting these types of assets so that these assets can be valued and, in turn, divided fairly.
During the divorce process, both parties would also be wise to comb over their various liabilities. Debts such as credit card debts and student loans have to be distributed during the divorce proceeding. Likewise, if the two divorcing individuals have a mortgage, they may need to go through the remortgaging process, in which case the person who plans to keep the house will need to requalify for a home loan.
Navigating the financial aspects of a divorce can no doubt be overwhelming. However, a New York family law attorney can assist a divorcing individual in pursuing a comprehensive and just settlement with the other party given the couple’s unique financial circumstances. One’s attorney will push for the most personally favorable outcome for his or her client while also ensuring that the client’s rights are protected at all stages of the divorce process.