Documenting your finances when you file for divorce

Documenting your finances when you file for divorce

| Mar 1, 2021 | Divorce

When you file for divorce in New York, you’ll need to give your attorney a clear picture of your financial situation. This includes information about your financial assets as well as your current income. With this information, your attorney could help you negotiate a fair deal with your estranged spouse.

How do you show your current income level?

Before you start the asset division process, you’ll need to gather information about your current income. If you’re a salaried employee, you can show your divorce attorney your pay stubs and your last tax return. If possible, you should also collect documentation on your estranged spouse’s income.

If you’re self-employed, you’ll have to figure out another way to show your current income level. You could show your attorney your most recent financial statements to give them an idea of how much you make every month. Your attorney could use this information to come up with a more exact figure.

According to family law, you and your former spouse have to divide up virtually everything you acquired while you were married. This doesn’t mean you have to sacrifice all of it. You might be able to offer one asset in exchange for another. It’s important to hire an attorney who can help you through the property division process.

Do you really take a financial hit in a divorce?

Many people put off filing for divorce as long as possible because they’re afraid that they’ll lose everything. They’ve heard stories about a judge forcing someone to give up their boat, house, savings account or retirement fund. While you can’t predict exactly what’s going to happen, your attorney will help you protect your valuable assets as much as possible.

Some assets don’t have to be divided neatly in half. For example, if you and your estranged spouse have your own retirement funds, you might agree to keep your own funds without trying to seize the other person’s. You could also offer a different asset of the same value. If you signed a prenuptial or postnupial agreement, some of your assets might be protected under the law.