Deciding whether to end a marriage is a life-altering and emotional experience. But a spouse, especially one who was not heavily involved in business or the couple's finances, should also take steps to determine the financial impact of their divorce.
A marriage may legally end with a divorce decree. Planning for divorce, however, should also include taking actions after the decree is issued. A spouse who was on their ex's health insurance policy must obtain their own policy. Likewise, the ex must be removed from a spouse's policy and the insurance carrier should receive notification about the change in their marital status.
Splitting up a marital relationship has legal, financial and emotional costs. But there are ways to soften the emotional impact of divorce which can help ease the resolution of other issues.
For over 70 years, spousal support was deductible from federal taxes for the paying spouse. Starting Jan. 1, however, this deduction will be eliminated under the new tax law. This has already made spouses hasten their divorce settlements and change their planning.
Ending a marriage involves numerous difficult issues, such as child custody and support, property division and spousal support. Recently, pet custody has become a more important divorce issue, even though there is little legal guidance over it.
The end of a New York marriage should not mean the end of good credit and financial stability. Protecting credit during a divorce can help assure a spouse's ability to obtain loans and pay for their needs.