By the time someone in New York files to end his or her marriage, he or she is usually mentally ready to do so. However, being mentally prepared for a divorce is much different than being financially prepared. While divorce can be an incredibly emotional process for many couples, it is also a process that can have unintended consequences on future finances.
One of the best approaches to remaining financially healthy both during and after a divorce is to remain actively aware of all necessary financial records. This might seem obvious, but with easy access to online accounts it is an approach that is often overlooked. In general, it is advisable to have physical copies of important financial records, including bank accounts, credit cards, tax returns and even payroll stubs. These documents can be vital for various aspects of divorce, including property division, alimony and even child support.
Divorcees can take protecting their finances a step further by actively separating their finances from their soon-to-be ex-spouses. Opening a new bank account into which pay checks can be deposited is just one such approach. Some people also choose to open new savings accounts and lines of credit in their own names before their divorces have been finalized.
Virtually no one in New York files for divorce with the expectation that their finances will be devastated by the process. Still, failing to adequately prepare for certain processes while maintaining a healthy awareness of current finances can have unfortunate results. Before heading into property division or any other important aspect of divorce, it is usually well-advised to remain well-informed of various financial accounts and investments and their potential implications in the divorce.
Source: NerdWallet, "6 Critical Steps to Prepare Your Finances for Divorce", Shawn Leamon, July 5, 2016