Though easier said than done, thinking ahead when in the midst of divorce is important. Why? Failing to do so can have a significant impact on one’s post-divorce financial situation. It is not uncommon for couples in New York or elsewhere to want to finalize their divorce proceedings as quickly as possible. However, this does not mean that either party has to walk away from his or her fair share of assets.
The division of assets is, for most, not an easy task. Without a prenuptial agreement — and sometimes even with such a contract — all marital assets are generally up for grabs — so to speak. There are those who may make decisions that will negatively affect their future financial situations.
Before making any drastic decisions, it will be helpful for a person to consider his or her post-divorce income, retirement savings and expenses. This may include cost of living, child care expenses and income changes — among numerous other things. Utilizing the assistance of a financial adviser, if desired, can give a person a clearer picture of how certain asset division terms will affect him or her down the road.
Thinking ahead and not in the moment can be hard when it comes to divorce proceedings. This experience is often an emotional roller coaster from which one cannot wait to be removed. Spouses, whether in New York or elsewhere, who choose to end their marriages and move forward need to be prepared for how difficult these processes can be, and will typically benefit by gaining an understanding of how future finances may be affected by the decisions made regarding the division of assets. Failing to take stock of the situation as a whole, which includes looking ahead to post-divorce life, can have negative economic consequences from which one may struggle to recover.
Source: thefiscaltimes.com, “Divorce: 3 Mistakes That Will Crush Your Financial Future”, Kathryn Tuggle, May 28, 2015