Find A Path To Your Brighter Future

How to address financial entanglements in high-stakes divorces

On Behalf of | Oct 23, 2024 | Divorce |

When couples choose to end their marriage, they will have to disentangle their financial connections. This process is especially complex in cases involving substantial assets or debts.

If you find yourself in this situation in New York, understanding the basics can help you address this challenging aspect of divorce.

Identifying shared assets and debts

The first step in settling finances is identifying all shared assets and debts, which can include:

  • Joint bank accounts
  • Real estate properties
  • Shared investments
  • Jointly owned businesses
  • Credit card debts
  • Other loans

It’s crucial to obtain accurate and comprehensive financial statements to ensure a fair division.

Understanding equitable distribution in New York

New York follows the rule on equitable distribution wherein the court divides marital property fairly but not necessarily equally. The judge will consider various factors, including the marriage’s duration, each spouse’s income and property at the time of marriage and divorce and their respective future financial circumstances.

Note that equitable distribution applies only to marital property, not to separate property either spouse owned before the marriage or acquired through inheritance or gift during the marriage.

Managing complex assets

Some assets, like businesses and professional practices, require careful evaluation to determine their worth and how they should be divided. Financial experts may be necessary to appraise these assets accurately.

Certain tools, such as business valuation reports, forensic accounting assessments and real estate appraisals, are essential for ensuring that all parties receive a fair share of the marital assets.

Finding the right approach and guidance

Handling financial entanglements effectively is crucial for both parties to move forward with their lives after the divorce. With the right approach and professional help, you can achieve a settlement that respects your financial rights and future security.