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2 key financial considerations you should not overlook

One of the first concerns couples have when divorce becomes a certainty is money. Divorces often bring about feelings of uncertainty, greed and contempt for many New York couples, especially when financial issues concerns about child support and the distribution of marital assets are factored in. If you are currently thinking about filing for divorce, you might want to take measures to prepare financially first.

You might not look forward to making decisions because you are ready for your marriage to end so you can finally move on. As tempting as it is for you to rush, it is best for you to think about how your settlement may impact your life after the finalization of your divorce. Here are some key financial pointers for you to consider:

Changes to your tax situation

Once your divorce is final, you will need to update your filing status to "single". If you plan to receive custody of your kids, it will become "head of household." Your tax filing status and potential child and alimony support payments can affect your finances during tax time and could result in some financial challenges.

Income and financial support

Your income is going to change, and you will need to adjust to your standard of living to accommodate your new circumstances. To avoid finding yourself on the brink of bankruptcy or worse, you should start taking charge of your financial situation now. Document all sources of income and expenses. Document how every penny is used to pay your monthly obligations. Do not forget to consider your nonessential expenditures. Develop a budget and create a plan that you can comfortably follow to avoid mismanaging your post-divorce income and financial circumstances.

Regardless of how much you think you will walk away with after a divorce, work out a plan and see a financial advisor or attorney. There are too many factors that are beyond your control that could cause you to make mistakes and end up with an unfavorable outcome.

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