Does Being Self-Employed Affect Your Long Island Divorce?
Many people are concerned about their divorce affecting their job, however, the reverse is also frequently true. Your employment may impact your divorce in significant ways, particularly if you’re self-employed. Here’s what to expect if you own a business or otherwise work for yourself and are getting a divorce.
You’ll Need to Do More to Prove Your Income
Self-employment income is more difficult to prove than traditional income in any situation, not just in a divorce. If you’re a contractor, for example, you may get a 1099 once a year instead of W2s. Or, you may be responsible for calculating miscellaneous income yourself. If you’re a business owner, you’ll need to assess your gross income, expenses, and net profits. With most types of self-employment, the pay is erratic or differs substantially from month to month. This, coupled with the lack of pay stubs, makes it challenging to calculate an accurate estimate of your income. Expect to gather six months or more of bank statements and fill out multiple forms.
Why You May Need a Forensic Accountant for Your Long Island Divorce
Finances are one of the most common issues in a Long Island divorce, and even more so in a high net worth divorce. You and your soon-to-be-ex-spouse must fully disclose your assets, and if one of you is found hiding assets, you could face serious penalties. Often, one spouse will hire a forensic accountant if they believe their spouse may hide assets to avoid paying as much in the divorce settlement and later in spousal support (alimony) or child support.
However, whether you believe your spouse has the propensity for dishonesty or not, if there’s a lot of money at stake, a forensic accountant can prove helpful. Here’s what you need to know. (more…)
Disclosing Your Finances in a Long Island Divorce
In a divorce on Long Island, you must disclose, or make known, your complete financial information if your case involves child support, spousal support, or other maintenance. New York State Domestic Relations Law §236 makes it mandatory for both spouses to bring forward their information so the financial situation of each spouse can be accurately represented. Even if your divorce is uncontested, you’ll still need to completely disclose your finances. (more…)
What is a Statement of Net Worth in Long Island Divorce?
One of the most important documents your divorce attorney will request from you and your spouse in the preparation of your Long Island divorce is known as a Statement of Net Worth (SNW). While this is a detailed document that can seem intimidating at first, it is critical for both your attorney and the court to have an accurate picture of your financial situation to effectively represent you and protect your interests in your divorce. (more…)
Equitable Distribution is Not Equal Distribution in Long Island Divorce
For many clients getting a divorce on Long Island, one of the most important issues is the division of property. It’s important to recognize that in New York, property is divided equitably, not equally. Although the words sound similar, they can lead to incredibly different results in your Long Island Divorce. (more…)
Tax Implications of Your Divorce on Long Island
For many Long Islanders, taxes are a sizable factor when considering their yearly budget. As we are all aware, living on Long Island is not inexpensive. As you progress through your divorce, it’s important to understand how your taxes will be affected. Ensuring you understand the repercussions of certain decisions made during your divorce will help you maintain a healthy post-divorce financial life. While it is well understood that a divorce changes your overall financial situation, the specific aspect of its impact on your taxes can sometimes goes unnoticed. (more…)
Tips to Protect Your Credit During Divorce on Long Island
Unfortunately for some, your Long Island Divorce can bring out the worst in your soon-to-be ex-spouse. Whether you begin your divorce amicable or contested, we always advise our clients to protect their credit before, during and after their divorce. We have been witness to many horror stories in which an upset spouse wracks up debt in the other spouse’s name. (more…)
Answers to Financial Questions During Long Island Divorce
As experienced divorce attorneys on Long Island, we know that after you and your spouse have made the decision to divorce, it is likely that you will have many conversations regarding important topics within your marriage, including property allocation, child support and custody, and spousal maintenance. In my many years of practice, I have found that, on some occasions, the finances of the couple jointly, and the parties individually, can be left out of those conversations. The topic of your finances is a vital component of your Long Island divorce, and needs to be addressed thoroughly in order to reach an equitable settlement for both of you. (more…)
How to Deal with Marital Debt in Your Long Island Divorce
For many Long Island couples, the issue of debt in your divorce can be a highly contentious topic. While married, you may not consider the ramifications of the $30,000 in credit card debt that was racked up to keep your family afloat. However, once the word “divorce” gets thrown around, that $30,000 is yet another hurdle to be dealt with.
Who is Responsible for Marital Debt?
Who Is Responsible for Legal Fees in Long Island Divorce?
Most of our divorce and family law clients, and prospective clients, naturally are concerned about the legal fees for their Long Island Divorce. It is a topic that most clients are troubled about, especially when they expect to need to litigate their case in a Long Island courtroom. Many Contested Divorces can cause legal fees to become costly.
However, if you have selected the right attorney, he or she will do his or her best to ensure that your legal fees stay as low as possible, typically through settlement negotiations rather than court appearances. Despite their best efforts, there are some situations that, no matter how good the attorney, can end up costing a good deal of money in legal fees. In some cases, your spouse will purposefully attempt to drag out your divorce, hoping to increase your legal expenses, strong-arming you into agreeing to a settlement that is not in your favor. In these situations, there may be a remedy available to you.
Am I Automatically Entitled to Legal Fees? (more…)