Financial Mistakes to Avoid in a Divorce
Keeping it together emotionally during a divorce is a serious challenge, but you can’t let all of the other distractions lead you into financial mistakes. Bad money decisions during divorce could harm you long after the ink on your divorce is dry.
Here are some common mistakes to avoid as you enter the New York marriage dissolution process:
- Holding onto a home you can’t afford — You may be emotionally attached to your home or have other reasons for wanting to keep it but doing so may not be financially sound. Before deciding how to proceed, you should make an honest analysis of your ability to afford the mortgage, property taxes, insurance and maintenance without contributions from a spouse.
- Hiding assets or debts from your spouse — Far too many people try to hide money from their spouse or conceal debts they’ve taken on without the other’s knowledge. Your finances will be scrutinized during the divorce, and courts can impose penalties and might even award your spouse a larger share of the marital property if you are found to concealing pertinent information.
- Forgetting to update beneficiaries — You might have insurance policies and retirement accounts that list your spouse as beneficiary. Unless you update these beneficiary designations, your ex could collect payments or benefits that you don’t want them to receive.
- Misvaluing assets — Appraising business assets, art, antiques and even real estate is not an exact science. Before agreeing to an allocation of the marital estate, each spouse should get an independent valuation of major assets.
- Failing to develop a post-divorce financial plan — The assets you receive as part of a property division order may need to last a long time. A financial planner can help you prioritize your goals and establish a framework that enables you to enjoy the next phase of your life.
Divorce can create a great deal of financial pressure, and these are just a handful of the traps to watch out for. A seasoned divorce lawyer will be able to counsel you along the way and help you avoid as many pitfalls as possible.
The attorneys of Bryan L. Salamone & Associates, P.C. help clients form a strong financial foundation for their post-divorce lives. We’ll do everything we can to help you avoid mistakes along the way. To talk with one of our experienced New York family lawyers, please call 1.631.479.3839 or contact us online. We serve clients throughout Long Island.