Protecting What Matters Most

How to plan financially for a divorce

People in New York who are going through a divorce may need to take several steps to ensure that they are financially secure. First, they should assemble all financial records dealing with marital assets. This should include estate planning documents and a prenuptial agreement if there is one.

People should also consider what professionals they need to help them through the process. In addition to an attorney, this might include a financial adviser and an accountant. People should then decide what to prioritize in the divorce. This can help keep them focused on the long term instead of getting distracted with arguments over points they do not really care about very much. Divorce can cause a great deal of anxiety, and those emotions can lead to poor financial decision.

There are several issues that may need to be discussed as part of the divorce settlement depending on the situation of the individuals involved. For example, they might need to decide what they will do with the family home, what kind of a child custody schedule they want and whether one parent will pay child support. They might need to discuss how they will file taxes. People should also make a post-divorce budget and consider whether they need to update any of their estate planning documents.

In a high-asset divorce, there may be additional considerations. For example, the couple might own valuable art or other collectibles. This would need to be appraised, and in some cases, individuals may want to each have their own appraiser. If appraisers do not agree on value, the divorce could be delayed. The couple might also have complex investments, and the rules for dividing these in a divorce might be complicated. There might also be tax implications for dividing or selling some assets.