Westchester & Rockland County Family Lawyers
Call Today! 914.873.4410
The Financial Impact of COVID-19 on Divorce

The Financial Impact of COVID-19 on Divorce

Aside from immediate health concerns, the economy has been a tremendous source of stress for many individuals right now. To add to that, the economic uncertainty has consequently had ripple effects on divorces.

Although a divorce may be the hardest decision you’ve had to make, it may be what’s best for your family. But you may be unsure of how to navigate one right now. If you are contemplating one or in the middle of it, it’s in your best interest to plan your finances accordingly amid the COVID-19 outbreak.

Finances, Divorce, and COVID-19

In a divorce, spouses must divide their assets through a process called property division. New York is an equitable distribution state, meaning marital property will be divided fairly. Financial matters are often areas of contention between spouses, and with the current state of the economy, getting a solid idea on your marriage’s finances is critical.

The most important piece of advice we have for you is to know what you have. In many marriages, we see one spouse control the finances— paying the bills, balancing the checkbook, and handling investments. This could backfire in a divorce.

There’s a higher possibility that your soon-to-be-former spouse may try to hide assets from you in an attempt to keep them in the divorce. How can you avoid this from happening? Here are a few ways:

  • Become familiar with the finances in your household. Learn how they’re being used and where it’s going.

  • Find out what is marital property and what is separate property. The latter is anything that was acquired before the marriage, such as an inheritance or gift, and it will not be subject to a couple’s asset division.

  • Speak with your attorney about the potential for hidden assets who can help you uncover them in the discovery stage of the divorce process.

Additionally, many people don’t realize that marital property includes more than tangible assets. Keep in mind that retirement benefits, stocks, income, businesses, and debts all fall under its category and will be divided too. By working with a skilled attorney, you can work toward a favorable outcome, even during these tumultuous times. At Friedman & Friedman, we use our knowledge and experience of asset protection, business valuation, and equitable distribution to help our clients reach financial stability.

If you need help with your divorce, please contact Friedman & Friedman today at (914) 873-4410.

 

Categories: