Just as financial disagreements can cause a rift between two married people and eventually lead to adivorce, it can make the divorce process challenging to get through. This can be particularly concerning for a New York couple with significant assets. A few tips can help them to protect themselves financially during and after the divorce.
First, it’s typically ise to immediately close all accounts that one has opened jointly with an ex-spouse. This is important because if the ex decides to go on a shopping spree and rack up huge amounts of debt on a joint credit card, or drain a bank checking account, the other party could be held responsible for the credit card debt or for the resulting bank account overdraft fees. It’s helpful to suspend a joint account and confirm that it can’t be reversed of the account otherwise reopened.
In addition, it is normally essential to change the beneficiaries applicable accounts. Failure to do so may mean that an ex gets access to one’s assets, including a 401(k) or IRA, even after a divorce is final. The individual may also want to update his or her umbrella liability or homeowner’s insurance coverage. This may keep the person from paying to financially cover assets that he or she may no longer own.
If two people have a prenuptial or postnuptial agreement that dictates how high-value assets will be split during a divorce, this can be immensely helpful for the parties. If such an agreement doesn’t exist, the two can still strive to find common ground and reach a settlement together. Both parties have the right to fight for their individual wishes to be taken into consideration when making tough financial decisions during a New York divorce proceeding.
Source: dailyfinance.com, “22 Tips to Transform Your Financial Life After a Divorce“, Robert Pagliarini, July 28, 2014