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Financial Advising During a Divorce

The following is a guest post from Jordan Herring who works with the New York based Colwell Law Group.

Enter: Jordan

Are you considering getting a divorce in New York? If so, one of the most important things that you will need to think about is your finances. Not only are financial issues one of the most fiercely contested aspects of most divorces, but they are also one of the most complex. A dispute over money can destroy your relationship and your financial well-being.

While a divorce can certainly be financially challenging for any couple, it does not have to be ruinous. Divorcing couples can take action to help themselves prepare for the challenges that they will face. One of the best ways to do this is to work with a qualified financial advisor who can help you through your divorce.

Three Reasons Why You Should Hire a Financial Advisor During a Divorce

  1. Proper Financial Planning Can Make Your Divorce Smoother and More Efficient

 It is no secret that a divorce can drag on. In fact, the average length of a divorce in New York state is currently more than one year. For many couples, a resolution takes much longer than that. While there are many different reasons why your divorce may reach an impasse, there is no doubt that financial disputes are one of the leading causes. Often, financial disputes occur because the couple does not have a clear understanding of their assets and debts. This is one area in which the services of a qualified financial advisor can be extremely useful. Your financial advisor can help you get everything in order so that you can make sure that you and your partner are on the exact same page.

  1. A Financial Advisor Can Help You Deal With Complex Assets

 For divorcing couples, not all assets are easy to divide. While splitting up the cash in a bank account may not be too challenging, dividing more complex assets can be incredibly confusing. Some common examples of complex assets that many New York couples own include:

  • Retirement accounts;
  • Insurance benefits;
  • Automobiles;
  • Real estate;
  • Real property;
  • Stocks and bonds;
  • Investments; and
  • Business holdings.

With these assets, your financial advisor will be able to help you clarify your position so that you can divide these assets in a way that does not damage the underlying value of your holdings or subject you to any avoidable penalties. For example, your financial advisor will be to guide you through the process so that you can deal with your tax advantaged retirement accounts without being penalized for making any early withdrawals. 

  1. A Financial Advisor Can Protect You From Common Post-Divorce Financial Problems

 Finally, many couples who have gone through a divorce with the help of an Albany divorce lawyer run into serious financial problems in the years immediately following the split. This often happens because expenses dramatically change after a divorce. Not everyone is fully prepared for that new financial paradigm. Your financial advisor will be able to comprehensively review your individual circumstances and help you create a customized financial plan that will fully protect you following your divorce, so that you are able to live sustainably, fulfill your new financial obligations and put enough money away for your retirement.

By | 2017-11-02T10:48:54-04:00 November 2nd, 2017|Financial Advisor, Planning, Retirement|0 Comments