Preparing for the Many Changes
Divorce is truly a life-changing experience; so many areas of your life will feel some sort of impact when the process is complete. Perhaps no area will feel a larger impact, however, than your financial situation. From the changes you will see to your income and expenses to how you file your income taxes, you can expect your financial situation to look drastically different than it did when you were beginning the divorce process.
Here are several key areas related to your finances where you can expect to see a change.
Income and Expenses
Perhaps the most obvious change will come to your income. With your ex-spouse no longer a part of the picture, that implies that their paychecks are no longer a source of income available to you. At the same time, you may face reduced or additional expenses depending on a variety of factors (including how assets were awarded in the divorce).
Many people are often caught off guard at the end of a divorce because they failed to examine their own financial situation and think through what changes needed to be made to their spending and saving habits. So it’s crucial to stay diligent with regard to your finances and to make projections early in order to gain an accurate estimate of how much you should be spending and saving each month.
While your legal requirement to pay your taxes does not change after divorce, how much you may pay or receive in a refund each year may. With a change in your marital status can come potential changes to your withholding status as well as your filing status; for example, being divorced means that you can no longer file joint tax returns with your spouse and must file single, and doing so means that your tax bracket may change along with your potential tax liability.
Be sure to consult with your local tax professional in order to better understand your options as well as make the best tax-related decisions.
The assets that you and your spouse owned going into divorce will be split up at some point in the process. New York law states that marital property, or property acquired by either spouse while married, is to be divided in the divorce. This means that assets you may have grown accustomed to having may no longer be in your possession when the divorce is finalized; conversely, you may receive assets you did not previously engage with as much while married.
Property division is a crucial step in the divorce process, one that is often filled with emotion. Your best move as you prepare to work through this part of divorce is to work closely with your divorce attorney to know how to best move forward and to determine which assets are worth fighting for compared to others.
What You Can Do to Stay Ahead
Preparation is key to staying on top of your life after divorce. Though the process may be long and the new beginning may seem far away, if you are unprepared for the future, your new beginning may start on a disastrous note. Your best weapon as you prepare for divorce is your attorney; they can guide you throughout each step of the divorce process in order to help you set realistic expectations of what everything in your life will look like when your divorce is completed.
At Levi Divorce & Family Law Attorneys, our team is experienced in handling all aspects of divorce, no matter how complex. We take our clients’ needs seriously and work to meet them in all that we do. To schedule a consultation with a member of our Queens divorce attorney team, call us 24/7 at (718) 215-0121 or visit our website.