Whether you or your spouse initiate your divorce, preparing your finances is crucial to your best interest in the long run. If you’re undergoing a divorce as a high net-worth individual or couple, taking the steps to protect yourself and your assets is crucial. Keep reading to learn more about the most common financial mistakes people tend to make during the dissolution of their marriage and how a Nassau County high net worth divorce lawyer can help represent you.
How to Avoid the Most Common Financial Mistakes
Living in New York poses unique challenges for those getting divorced, as it is an equitable distribution state. This means you and your spouse will not simply split everything down the middle, but rather the court will divide the property in a fair and just manner. This means the court will consider how much each spouse contributed to the relationship before dividing the assets between spouses.
Another mistake many make is forgetting to consider the liquidity of assets. For example, you may want the home that your family shared. However, the liquidity of this asset may not be as easily accessible as a retirement plan. If you end up with very few liquid assets, it can make it challenging to make payments on the assets you did receive.
Aside from getting too sentimental, you should avoid trying to get revenge against your ex. Though you may be on unfriendly and hostile terms, don’t try to ruin their finances by racking up credit card debt in their name. This will likely be traced back to you, meaning you will be responsible for the debt incurred.
You should also take the time to review your assets and finances before you begin the divorce process. This is especially important if your spouse handles the bills, as they could be hiding assets. Ensure you review tax returns, bank account statements, and business accounts.
When You Should Contact an Attorney?
Ensuring you contact an attorney as soon as you decide you want to separate from your spouse or you are served with divorce papers is essential. The longer you wait to obtain the guidance of a lawyer, the more susceptible you are to making irreparable financial errors.
Divorces are complicated legal processes, made even more complex when there are a considerable amount of assets involved. Trying to navigate your divorce on your own may save you in terms of legal fees, but it can cost you considerably more in the long run, as you will likely miss out on the money and assets you are entitled to.
When you need the guidance of a divorce attorney, Barrows Levy is here to help. We have the essential experience to help you make the best financial decisions for your circumstances. Reach out today for a free consultation with one of our seasoned attorneys to discuss your situation.
