Preparing for post-divorce financial planning

Posted by Lauren S. CohenJun 12, 20180 Comments

When people in New York decide to divorce, the financial repercussions can be significant. While every divorce is unique and carries its own characteristics, there are a few universal principles that can help future exes avoid costly oversights or errors during the process. The post-divorce period can also bring a number of changes in lifestyle.

For example, the marital home can often be a key financial issue in a divorce. In many cases, one or both of the partners may wish to keep the house for their post-divorce life. In many cases, however, this is unrealistic for either partner. Running two households on the same incomes that previously ran one household is more expensive, and the marital home may not be a financially viable choice for either partner post-divorce. Instead, selling the home may be a more responsible way to handle the housing question.

In addition, it can be difficult to change spending habits after divorce, especially when children are involved. One or both parents may want to emphasize their commitments to their kids by overspending on material items.

This issue can be exacerbated by a lack of financial education. Many people already have little financial knowledge, and this can be more apparent after divorce. In many cases, one partner was previously responsible for the majority of the financial planning and decision making. After divorce, however, each party will need to develop their skills to plan for their independent futures.

The financial aspects of divorce can be some of the most challenging issues that accompany the end of a marriage. A family law attorney can work with a divorcing spouse to provide vigorous and active representation in family court and throughout the settlement process.