Going through a divorce is an emotional roller-coaster, as some New York residents have discovered. Even in amicable divorces there is often tension and negotiating going on, in addition to dealing with the emotions brought up by the process. Because splitting up can be so complicated, it’s important to keep focused and organized when it comes to financial matters, as these can affect your life long afterwards.
How to protect yourself
There are several things you can do to protect yourself financially during and after divorce. This can include:
- Getting a financial support team together, comprised of financial experts who might advise you as to how best to proceed during the negotiations
- Keeping a record of all documents, meetings and conversations during the process so as to ensure that there is no confusion later on
- Updating your documents, such as your will and life insurance, and beneficiaries to prevent additional issues after the divorce
Often forgotten details
During the process of the dissolution of the marriage, there are other financial details that might be overlooked, even by your support team. If you are married on the last day of the year, for example, your tax filing status will be affected, as you might still be required to file jointly. Another detail that might be forgotten is the amount of life insurance required of the spouse who will pay support since the future payment values should also be included in the calculations. Retirement accounts, such as 401(k)s will also need to be carefully reviewed. Finally, both spouses should consider whether selling the home they shared might be the best move going forward.
Though it might seem challenging to focus on these details during the divorce process, you will be glad you did as your start the new chapter in your life. This might be the step towards a financially secure future.