Getting divorced in Syracuse usually means living on a tighter budget.
While the divorce process itself can be expensive, each party will need to calculate finances for a single-income household. Transitioning from a married household with two incomes and shared expenses to living on one income alone can be difficult. Accordingly, it is extremely important to know how to calculate your finances during a divorce. An article in Nerd Wallet discusses the complications of creating a budget during and after divorce. The article highlights the complexity of managing finances during divorce and planning for the future.
Calculating your finances during and after divorce is an indispensable part of creating a new budget for yourself.
The first part of creating a new budget usually involves tracking your expenses. For example, you should make a list of all household expenses, including bills, food costs, home maintenance, transportation, and entertainment. If you know you will need to make a major purchase, include it in the budget. By calculating finances to make a budget during your divorce, you can be prepared for your post-divorce lifestyle.
In calculating your finances during a divorce, you can also develop a detailed list of marital assets and debts.
To do so, you should gather all financial documents. This process can help you later on during the equitable distribution of marital property. You should obtain copies of bank and retirement account statements, pay stubs, income tax returns, and investment information. Calculating your finances should also involve listing any known marital assets and debts. If possible, identify the purchase price and date for all assets in addition to any recent appraisal information.
Under New York law, all marital property is divided according to the principle of equitable distribution.
Accordingly, the court divides marital assets and debts in a way it deems to be fair to both spouses. It is common that equitable distribution results in an equal distribution. However, to properly divide all marital property, the court must know about all existing assets and debts. Sometimes one of the parties forgets to list an asset. At the same time, parties can intentionally hide assets. By calculating your finances and taking into account existing assets, you may be able to reveal hidden property.
According to Syracuse family law attorney Richard J. Bombardo, creating a post-divorce budget and identifying assets is essential. As Bombardo underscored, “calculating finances during a divorce can ensure that the equitable distribution of marital property is actually equitable.”