Financial Fear During Divorce
Fear of a compromised financial future is common during divorce. Understanding the fear—and knowing what to do about it—is essential.
Because of the requirement to divide debt and assets during divorce, couples of all ages are concerned about getting their fair share. For individuals closer to retirement, the need is more urgent with fewer years remaining to rebuild a nest egg.
With longer term marriages, a significant disparity may exist between the earning potential of spouses. For a less-monied spouse who has been out of the workforce, financial worries can include:
- An incomplete picture of the assets and income of the household
- Lack of knowledge about household debt load, leading to unfortunate surprises when the true financial condition becomes known
- A poor understanding of the household budget and lifestyle costs
- Insufficient individual credit history
- Financial and other threats made by a partner in hopes of securing unfair agreements, unfair child custody or financial arrangements
Each of these fears is realistic but can be addressed with assiduous homework and by retaining skilled legal counsel. Consider these tips to fight financial fear during your divorce process:
- Become informed: Review and copy bank, tax, investment and other statements. Review the checkbook and credit card statements to understand what you need to move forward.
- Check your credit: Order a credit report. Review and close unneeded or joint accounts. An unused home equity loan can lower your credit score and leave you financially vulnerable. Apply for credit in your own name if you have not already done so.
- Retain legal counsel: Work with experienced, aggressive legal counsel to protect your rights, finances and future.
Our firm helps you face financial and other concerns during divorce. When your marriage in New York is ending, contact me at Bryan L. Salamone and Associates, P.C.