New York Women’s Rights Lawyer
Evaluate the Nature of Your Divorce Settlement
All women considering divorce should remember a number of key points. First,
a settlement that appears equal but is not particularly liquid may make
for hard times in the future. For example, if a wife receives the house
when marital property is distributed—an illiquid asset—and
her husband receives investments—which are generally more liquid—she
may have a hard time keeping the house. Maintaining a house requires cash
flow, which can present a significant challenge for many former wives.
Consider the Tax Consequences of Your Settlement
Secondly, it is important for women to remember that tax consequences can
greatly affect the value of a settlement. For example, the rules on retirement
accounts can be complicated. When a large portion of the settlement is
in retirement assets, the recipient should have knowledge about the potential
tax ramifications and penalties. A Qualified Domestic Relations Order
(QDRO) can be used to transfer money to a former spouse without penalty,
which is something you should discuss with your lawyer.
Remember that Your Debts Will Also Be Divided
Additionally, women should remember that, when they
file for divorce, they will divide more than just their assets – they may also divide
their debts. Creditors don’t care about the terms and conditions
of a separation agreement. They want their money, and they will not hesitate
to go after both spouses to get it. For this reason, it would be wise
for spouses to negotiate these details in a divorce settlement between
Protect Your Financial Security with a Life Insurance Policy
Finally, a woman would be well-advised to include a provision in her divorce
settlement detailing the need for her former spouse to carry life insurance.
This can help safeguard her own financial security, as well as that of
her children, in the event that her former spouse dies an untimely death.
Life insurance can be used to insure the payment of child support, alimony,
and property settlements.
Contact our team at Lois M. Brenner, Esq. (646) 663-4546 for more information.