Divorce is full of emotional turmoil, but the truly complicated part of splitting is the separation of finances. Money has changed in the past 50 years; there once was a time when it was possible to separate a bank account and negotiate for the home and car. Now, though, divorcees must consider multiple retirement accounts, loans, credit-card debt, student-loan debt and various assets. As such, it’s crucial those considering divorce seek outside help.
At Elliot Green Law Offices in Queens, we can help you get on top of your finances and fight for your rights throughout the divorce. We have extensive experience in many areas of divorce law including high net-worth individuals, property division, prenuptial agreements and postnuptial agreements. To schedule a consultation with a divorce attorney from our offices, please call 718-260-8668.
1. Investigate the Finances
In most relationships, one of the spouses handles the finances, and the other spouse may feel in the dark when it comes to divorce. Spouses who don’t feel they have a complete picture of their family’s finances must take steps to fix that before divorcing.
The best way for them to begin is to view their credit report. These reports are up-to-date overviews of debt, and they display exactly how much debt a person has and which companies hold that debt.
2. Hire an Accountant
There is only so much investigating that a person can do on his or her own. That’s why Forbes recommends hiring a forensic accountant. This is especially good advice for couples who need to split stock options, deferred compensation, insurance plans, retirement accounts, trusts and overseas property.
Spouses who suspect their significant other may be committing fraud or hiding assets should also speak with a financial expert. A thorough investigation can reveal a crystal-clear picture of the household finances, which is key to ensuring both parties receive what they deserve.
3. Consider All the Angles
Separating the finances is rarely straightforward, and people who aren’t careful may risk paying an excessive amount in tax penalties. For instance, Yahoo News reports when a couple decides to split retirement accounts, they may need to withdraw money early, which will greatly reduce the amount that each spouse receives.
Likewise, not all credit-card debt is the same. Interest rates drastically change the true amount of debt; for instance, let’s imagine a person has a balance of $10,000 with a 15-percent interest rate. If that person pays $400 each month until the debt is paid, he or she will have paid an additional $2,065. Even if a spouse plans to pay off the balance immediately, the bank may charge a residual interest rate.
There are many factors to consider during a divorce, and it can quickly become overwhelming. Fortunately, you don’t have to do it all alone.
At Elliot Green Law Offices, we are committed to offering practical legal advice at every stage of the divorce. To arrange a free consultation with a divorce attorney, please call 718-260-8668.
