Although New York divorce court judges strive to approve an agreement that’s fair, some couples may make financial mistakes when they draft a settlement. Involving professionals in your negotiation will help you prevent these mistakes and save you time on research.
Failing to hire a forensic accountant
A spouse sometimes hides assets during the marriage to try keeping them safe in the event of a divorce. If you don’t hire a forensic accountant, then you might not know about the assets. Attempting to hide assets during a divorce is illegal, so you should disclose all of them.
Negotiating without a mediator
Even if you and your spouse are able to peacefully negotiate, a mediator could help you draft a better deal. The financial aspects of property division during divorce are complex. Taxes and early withdrawal penalties mean that the route for a fair division isn’t always obvious. Consulting with professionals who have experience with property division in divorce is worth it to walk away with more of your assets. Mediators also maintain the peace during negotiations in addition to sharing possible solutions to the couple.
Forgetting about a marital debt
Having a full list of your debts is just as important as knowing all of your assets. You or your spouse may have forgotten about a past debt, so don’t rely on your memory. It’s also possible for a spouse to hide a debt. You should obtain credit reports from the three main credit bureaus to have more certainty on what your combined debts are. The law holds both parties responsible for debts in a marriage regardless of whose name it’s in.
You can avoid making common financial mistakes during your divorce by working with a mediator and accurately gathering an account of all assets and debts. This isn’t something you should rely on the court to handle for you.