The Six Big Money Questions to Resolve In Your Divorce

Financial issues are a big concern for many divorcing couples. You need to make sure that you understand the money matters that arise in your divorce, and that you know what your rights are for protecting your financial stability and taking care of your loved ones.

A NY divorce lawyer can provide you with insight into the money issues that arise as your marriage ends and can provide legal assistance in fighting for a fair divorce settlement during negotiations or litigation.  Calling a lawyer early on when you know your marriage is over is an important step towards achieving financial success in your divorce settlement.

Six Big Money Questions To Resolve in Your Divorce

As you go through the divorce process with the help of your New York divorce attorney, the six big money questions that you will need to answer as your marriage ends include:

• How much money do you need to ensure your children are cared for? Meeting the needs of your kids is always the top priority. Child support is required in most New York divorces, and a standard formula is used to calculate support that considers parental income and how parenting time is shared. While you can’t generally deviate from the standard formula unless there’s a good reason, you may want to address some matters on your own in divorce that would normally not be a factor in the standard calculation. For example, if your child participates in expensive extracurricular activities or if you want to ensure college tuition or private school tuition is paid for, you’ll need to be sure to include a provision in your divorce settlement.
• Who should keep the house? When you have a shared home, you will need to make the choice if either spouse should keep it or if it should be sold. When deciding who should keep the house, consider the costs associated with its upkeep- can you afford them once you no longer have income coming in from both spouses? If you and your spouse cannot agree on who should keep the home, the children may be a factor. The parent with primary custody may want to remain in the house so the children have more continuity.
• How will debts be handled? Be sure to close your credit cards and joint accounts when you decide to divorce so you do not end up left responsible for your spouse’s debt. You’ll also need to make a plan (or have a family court judge make one) to divide up the debts you have acquired while married. Whenever possible, it is best for debts to either be paid off or for debt to be refinanced into the name of the spouse who becomes liable for paying it. If you don’t refinance the debt and your spouse is assigned responsibility for it, creditors could still try to collect from you if your name was on the debt.
• What should you do about insurance? You may lose access to health insurance when you divorce. You need to consider how to get coverage. You also need to make sure your children are covered.  The Patient Protection and Affordable Care Act established provisions allowing you to buy insurance on your state’s insurance marketplace when qualifying life events happen, even if you are outside of the normal open enrollment period. Divorce is a qualifying event, so you can shop for coverage.
• Will you get alimony? Spousal support is not always awarded, and it may go either way (the husband may have to pay the wife, or vice versa). You need to consider whether alimony is appropriate based on the length of the marriage, the earning potential of each spouse, and other factors. If you can’t agree on alimony and don’t have a prenup, a judge will consider what is fair under the circumstances.
• What about retirement accounts and benefits? You may be entitled to receive a portion of your spouse’s pension money and you may be entitled to your fair share of your spouse’s retirement accounts. Money cannot be paid or withdrawn right away from most accounts but a judge can issue a Qualified Domestic Relations Order (QRDO) to ensure you get your share of retirement funds when the time comes.

A NY divorce and family law attorney can provide invaluable assistance in resolving these questions and helping to ensure you get a fair divorce settlement that leaves you in a good place financially. Contact a lawyer today to get the help you need in taking care of money matters during divorce.