During a divorce, a New York couple has a lot of financial considerations. Unfortunately, there are certain important aspects that can be overlooked that end up being costly. These are some common financial mistakes to avoid during your divorce.
Not having a full financial picture
In a high-asset divorce, it’s common for one spouse to have been in charge of managing the money. As a result, the other spouse may not know their full financial situation. Not going through all of your pertinent documents and learning about every aspect of your finances can mean not getting all the money you are due as part of your divorce settlement. Or if you are the one who ends up having to pay alimony and child support, you might have to pay more than you planned.
Not creating a new budget
After a divorce, you only have one income to rely on and cannot rely on the two incomes you’ve become accustomed to; this means making changes such as creating a new budget to accommodate your new financial situation. If you don’t come up with a new budget, it can create hardship and you can end up spending beyond your means.
Not considering hidden assets
Sometimes, during a divorce, one spouse discovers that the other has hidden assets. This isn’t fair, but it’s done as a way for them to protect themselves in the event of a split. If your spouse has assets hidden and you don’t uncover them, you won’t get your fair share in your divorce settlement.
Keeping the marital home and other costly assets
Keeping the family home can create a financial burden, as can clinging to pricey assets you can’t afford. Not parting with them could be a mistake; the point is to have enough money to live on post-divorce.
Avoiding these mistakes during a divorce can help you financially in the long run.