The cost of divorce is high, and the cost of living in New York is even higher. If you are a cash-poor but asset-rich individual facing divorce, your priority is to be as smart and financial-savvy as possible.
Whether you are a real estate owner tied up in many properties, an investor with lots of equity, or any other type of asset-rich person, you need to know how to protect your assets during a divorce. Contrary to popular belief, divorcing with assets intact is feasible.
With the right divorce legal team at your side, you can be assured of a better and stable life. Here are some divorce tips for the cash poor and asset rich.
- Prepare a fund with credit.
The key to winning your divorce and having the process play out peacefully is a good divorce team. Unfortunately, they don’t come for free. If you’re cash-poor, you need to find a way to be liquid enough to hire a team to help you out.
Maintain a credit card in your own name to make sure that you have access to funds for however long the divorce will take. This must be separate from any credit joint accounts you currently have. You can also sell some of your personal assets which are distinct from your marital assets.
- Strategize with a financial plan in mind.
It sounds obvious, but a lot of people skip out on this important step. A divorce plan is meant to formulate your strategy according to your own priorities. In this case, you probably want to keep all of your assets and take as few of the debts as possible. A financial-savvy divorce plan looks at how things will play out after the divorce.
In your divorce team, you need to have an experienced attorney who knows how to comprehensively identify and defend your assets.
An even stronger way to plan out the divorce is to work with a financial advisor in your team as well. This is doubly true if you plan to divorce during tax season. A Certified Divorce Financial Analyst or a CPA can help you and the rest of your team navigate complex property settlements and outline any possible tax implications.
- Know what you own.
The advice of a great attorney and a financial consultant can only go so far if you yourself are unaware of your assets. Know exactly where your money and value is tied up. Things that you can overlook include:
- Real estates
- Oil and gas royalties
- Stock options
- Deferred compensation plans
- Employer benefits and retirement plans
- Intellectual property, copyright, and patents
- Insurance and annuities
Even country club memberships and other executive perks count as assets you need to mind during divorce proceedings.
- Do not confuse marital with separate property.
You can create unnecessary worry during your divorce if you don’t know which properties are marital and separate.
Marital properties are those which were acquired or earned during marriage. On the other hand, separate properties are those you personally owned before the marriage. This can include your inheritance and even your engagement ring.
- Be prepared with documents.
Settling who gets what and how many is a matter of who has the most evidence. If it is not possible for you to resolve potential property disputes, then the Court will have to arbitrate for you when it comes to marital assets.
New York is an equitable distribution state. This means that the Court won’t divide marital assets equally between the two of you; instead, you each get a portion based on what you contributed. Backing up your claims with documents, your involvement in the business, your interest, and so on are all clear ways to get started.
- Hire only the best New York legal divorce team.
No matter what position you’re in right now, whether you think you’re at a disadvantage or not, it’s definitely possible to win your divorce with a great team.
A legal team with a winning strategy will get you what you want. Brian D. Perskin & Associates P.C. is a top-rated and experienced firm known working in New York City. Don’t settle for anything less than what you need to live a good life. Call us at 718-875-7584 today!