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If you’re going through a divorce in New York, it can be a challenging process that drains you emotionally. It can also affect you financially, making it critical to make the right choices. Learning about common financial mistakes when getting divorced should help you avoid them.
If you’ve been relying on a double income to pay the mortgage and taxes for your existing home, it’s critical to examine if you can cover the cost after getting divorced.
When you have an investment portfolio of stocks and similar assets, understanding how they will be taxed when sold is essential. Knowing the cost basis for each asset reveals if it is currently profitable. Considering these figures will ensure you split these assets fairly and have enough money to pay taxes if they are sold after your divorce is finalized.
It’s also important to consider your children’s future financially and decide who will cover college expenses. Examining the financial position of both of you is essential as this can impact the amount of financial aid your children be eligible for when applying for college.
Examining the value of retirement accounts should also be done during a divorce. If the value of a retirement account for one of you is high, creating a plan to compensate the other spouse is essential, making the split fair financially.
Knowing how your divorce affects health insurance benefits is also critical. If you are receiving coverage from your spouse’s employment, you may need to find an alternative.
Understanding how these areas affect you financially after your divorce is finalized requires due diligence. Examining each element is essential to ensure you are left financially secure when you become single.
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