Protecting Your Finances During a Penfield NY Divorce

The key to protecting your finances during a Penfield, NY, divorce is to understand how divorce can affect your finances in the first place. When you get divorced, you must divide up the assets and debts you previously shared with your spouse. By understanding how you can protect your assets, you can streamline your divorce and have a better chance at fair settlement terms.

Understanding New York’s Equitable Distribution Law and Its Implications

To ensure both parties are treated fairly when it comes to asset distribution, New York enacted the Equitable Distribution Law. This law requires the court to split any marital property equitably between the spouses. That said, you’re not guaranteed exactly half of everything. The circumstances surrounding your divorce can impact how property, assets, and finances are divided in a divorce.

Separate property will be retained by the spouse it belongs to.

How to Protect Your Finances During a Divorce in Penfield, NY

When you know how to protect your assets and income, you can have peace of mind knowing your finances will be secure when your divorce is finalized. It can be challenging to know how to prepare for a divorce, but there are key steps you can take to protect your finances:

• • Create a budget. One of the first things you can do to protect your finances during a divorce is to make a post-divorce budget that reflects your new reality. You can include changes to your financial situation, such as changes in income, child support or spousal maintenance payments, and any new living expenses.
  • Prepare documents early. Once you decide to move forward with a divorce, it’s important to gather all your pertinent financial documents, such as bank statements, credit card statements, investment accounts, pay stubs, retirement accounts, tax returns, and any documents related to properties you own.These documents can give you and your Penfield divorce attorney a clear idea about your current financial situation so you can make informed decisions about your assets and income. It’s a good idea to lead with transparency when it comes to your finances to make things easier down the road.
    • Protect your retirement accounts. Your retirement accounts can be among the most valuable of your assets in a divorce, so it’s important to divide them the right way. You can get a Qualified Domestic Relations Order (QDRO) to move funds in your retirement accounts while avoiding immediate tax liabilities and any early withdrawal penalties.
    • Take care of your debts and liabilities. As you go through your divorce, focus on handling both your debts and your assets. Any marital debts will be split between both spouses, so it’s important to understand what you are liable to owe. It can be helpful to stay on top of your credit report at all times.
    • Think about your income and future earnings. If you and your spouse have different incomes, it’s important to consider possible outcomes. In some cases, the court may decide one party owes the other spousal maintenance. An easy way to protect your income is to keep detailed information about your financial situation and ensure you can prove a similar standard of living to your spouse after the divorce.

As of 2023, New York has maintained a fairly low divorce rate compared to other states, with an average of 2.3 divorces per 1,000 inhabitants. That said, it’s important to understand what can happen if you do go through a divorce so you’re ready to protect yourself and your assets. If you make the decision to file for divorce, it can be handled through the Monroe County Family Court, located on Exchange Blvd.

FAQs

What Is the Most Common Financial Mistake to Avoid When Filing for Divorce?

There are a handful of financial mistakes many people make when going through a divorce. One common mistake is not fully knowing the extent of your assets and debts. Without a clear picture of your financial situation, it can be difficult to set realistic goals and make a plan for your future.

What Is the Difference Between Marital Property and Separate Property?

Marital property and debts refer to any property or debts acquired during the marriage. This property technically belongs to both spouses and, therefore, can be divided between them in the case of a divorce. Separate property and debts belong to either you or your spouse individually. These are not split between both parties in a divorce and instead remain with the original owner.

How Much Does a Divorce Lawyer Cost in Penfield, NY?

The overall cost of hiring a divorce attorney in Penfield, NY, can vary depending on the complexity of your case and the experience level of your lawyers. Moreover, the cost depends on the payment structure of the law firm. Some attorneys charge a flat rate, an hourly rate, or a percentage of the settlement. Typically, you can discuss a lawyer’s fees with them in your initial meeting.

How Does a Divorce Affect My Estate in New York?

The New York Estates Powers & Trusts Law 5-1.4, also known as the revocation on death statute, states that a divorce rescinds any appointment of property made by the individual to the former spouse without the express terms of a governing document. Essentially, any spouse who was involved in the estate is automatically no longer a part of it unless otherwise stated.

Get in Touch With a Penfield Divorce Lawyer to Learn More About Your Rights

Divorce can be highly emotional, but it’s also a complex legal process. That’s why it’s helpful to have a skilled divorce attorney in Penfield on your side who can represent you in court and guide you through the more complicated steps.

Our team at Trotto Law Firm, P.C., is dedicated to negotiating fair settlements, protecting your rights, and advocating for your financial interests. Located just east of the Frederick Douglass Greater Rochester International Airport, we’re ready for you to visit. Contact our office or come see us in person to set up a consultation with our team today.