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Post-Divorce Financial Planning for Long Island, NY Residents
It’s an undisputed fact: divorce will no doubt reshape your finances. As a divorce attorney with over 20 years of experience practicing matrimonial law, I try to advise my Long Island clients in Nassau County and Suffolk County to take practical, actionable steps to rebuild their budget post-divorce, protect their retirement assets, manage their debt, and update their insurance and tax strategies. I lean on local resources and my legal experience so they can make informed choices about credit, investments, and when it makes sense to bring in a financial advisor or CPA to help you on your path to financial security.
Key Takeaways
- Make a list of all assets and debts, note any ownership changes, and update payees and beneficiaries as a result of your divorce.
- Create a post-divorce budget that’s realistic for a single person, covering housing, childcare, taxes, and be sure to set up an emergency fund.
- Rebuild and protect your credit: open individual accounts, pull your credit reports monthly, prioritize paying down high-interest debt, and stay current with all payments.
- Understand the tax angle on divorce settlements: alimony rules, filing status; don’t forget transfers of retirement accounts (401(k), IRA) and the impact of capital gains.
- Review retirement plans and consider adjustments: get QDROs when needed, roll over your 401(k)/IRA correctly, and reassess your retirement savings targets.
- Review and update your insurance and health coverage: evaluate COBRA or Marketplace options, update beneficiaries on life insurance, and confirm disability coverage.
- Engage local professionals (attorneys, financial advisors, CPAs) who understand Nassau and Suffolk counties’ legal framework. Consider Long Island counseling services for structured planning.
The Critical Importance of Financial Literacy after Divorce on Long Island, NY
Financial literacy drives every decision post-divorce. Knowing your cash flow, the tax impact of your divorce settlement, how retirement is split, and how to rebuild credit can help you avoid costly mistakes. I generally suggest my clients track 90 days’ worth of their spending habits. I also suggest they set an emergency fund target of 3-6 months of expenses and review all asset accounts-like 401(k)s, IRAs, and pensions. On Long Island, a second income loss can shrink cash flow by 30-50% or more. Forecasting your cash flow accurately and negotiating smart settlement terms can protect your housing stability and your long-term retirement security.
Emotional vs. Financial Recovery After Divorce
The emotional turmoil of a divorce can push people toward rushed financial decisions. Too often, I’ve seen clients cash out retirement accounts and end up with a poorer settlement just to move on. An early withdrawal from a 401(k) before age 59½ triggers a 10% penalty, and income tax on the balance can wipe out thousands of dollars. I encourage my clients to set a 90-day interim period before taking any big financial steps. You can create a monthly cash-flow statement, then consult a CPA or financial planner to understand the implications of alimony, child support, and tax filing status before agreeing to anything.
Long-Term Implications of Poor Financial Decisions
Quick fixes today can echo for decades. For example, cashing out a $100,000 retirement account may cost 20-30% in taxes and penalties and erase the compound growth that could have doubled the balance in 20 years. Missing a QDRO can prevent access to pension funds. A damaged credit score means higher mortgage rates and pricier auto loans. I suggest running 10-, 20-, and 30-year projections to identify and quantify potential retirement income shortfalls and risks, especially around the issue housing affordability, especially here on Long Island, where housing costs are particularly challenging.
Technical Errors Magnify Over Time
I suggest trustee-to-trustee rollovers so there’s no withholding, verify QDRO language for defined benefit plans, and have clients update beneficiaries. If you forget to update your beneficiaries, your former spouse could end up with your funds. When someone is eligible for spousal or survivor benefits from Social Security, those benefits have defined periods of eligibility; while there’s no penalty for delaying benefits, delaying can increase your monthly benefit. Running scenarios with different timing for Social Security, taxes, health premiums, and refinancing can help you prioritize what to do and close long-term gaps.
Creating a Sustainable Budget for Your New Reality
Here’s how I suggest you approach a post-divorce budget to fits your new reality.
- Build an emergency fund of 3-6 months’ expenses
- Keep housing costs to about 30-40% of your net pay (Long Island realities)
- Contribute 10-15% of your take-home pay to retirement until your accounts are rebuilt.
To ensure this works, track your incomes and expenses for a few months to see how your discretionary spending breaks down. Do it in a spreadsheet or an app, then set discretionary monthly goals for savings, debt repayment, child-related expenses, and bills.
How to Identify Your Income and Expenses
To craft your new budget, pull together:
- Pay stubs
- Settlement documents if you’re receiving child support or alimony
- Investment statements if you’re receiving a distribution
- Any freelance income
- If you’re renting or have rental income
- The last 3 months of bank and credit card statements to separate recurring expenses from likely one-time costs
If your net income is about $5,000 a month, it’s reasonable to expect housing, taxes, and insurance to run roughly $1,500-$2,000 per month on Long Island, NY. Also note the one-time costs that pop up like annual property taxes, higher winter heating bills, or auto costs-that can help you cushion cash flow so you’re not blindsided.
Funding Requirements for New Priorities
Given the current economic environment, I often suggest new clients start with a modified 50/30/20 budget until they’re back on their feet: 50% needs, 30% wants/transition costs, 20% savings/debt. If child care obligations or legal expenses are especially tight, you can go with 60/20/20.
Key moves to start with:
- Rebuild your emergency fund
- Reinstate your employer retirement contributions and maximize employer matches
- Put the remaining cash toward paying off high-interest debt
- Create separate monthly allocations for childcare, school fees, and medical co-pays so these don’t chip away at your basic living expenses
I also suggest keeping child support and school costs in a separate account. It’s better to have, say, a $6,000 tax bill and set aside $500/month in a tax sinking fund than to borrow when the bill comes due. Use your tax refunds and any lump sums from a settlement first to top up your emergency fund and knock down high-interest debt, then split the rest between a down payment fund and retirement savings for long-term stability.
Rebuilding Your Credit Score in Phases
I often suggest clients to pull their three credit reports at AnnualCreditReport.com or a similar service and dispute any inaccuracies right away. Lower revolving utilization to below 30%, ideally under 10%, to see real gains. Consider adding an extra secured card or a credit-builder loan, but make sure everything is paid on time, avoid new hard inquiries, and check your progress each month. With disciplined behavior and corrected items, most clients see tangible increases in 3-6 months.
Credit Repair Road Map Step-by-Step
Step 1: Obtain reports – Order Equifax, Experian, and TransUnion reports using AnnualCreditReport.com
Step 2: Find errors – Identify wrong balances, duplicate accounts, erroneous late payments, etc.
Step 3: Dispute – Dispute online and by mail with certified receipt and supporting documentation
Step 4: Reduce utilization – Pay down balances. Goal is <30% utilization, ideally <10%
Step 5: Build tradelines – Use secured cards, credit-builder loans, or be authorized on a positive account
Step 6: Watch – Use alerts, monthly checks, and free monitoring for incongruities
Understanding The Credit Repair Process
I suggest my clients start by pulling all three credit reports and logging every discrepancy with screenshots or statements. Each dispute prompts an investigation by the bureaus, and creditors usually have 30-45 days to respond.
When inaccuracies in your credit reports create a large balance, I recommend sending dispute letters by certified mail. Include invoices or proof of payment. If the credit bureau can’t fix the errors, I escalate the issue to the creditor-and, if needed, to the Consumer Financial Protection Bureau (CFPB).
Strategies To Manage And Lower Debt: the Avalanche Versus Snowball Theories
To create a strategy to manage and reduce your debt, I suggest weighing both the avalanche method (paying the highest APR first) and the snowball method (paying the smallest balance first), and then pick the best fit based on your patterns. For example, if you’ve got a $12,000 balance at 22% and a $2,000 balance at a lower rate, you can see real savings by tackling the high-rate card first. Because the bigger balance accrues more interest, you’ll save more even if you keep paying the lower-rate card for a while.
I often suggest debt consolidation with a 0% interest balance transfer (that can last 12-18 months) or a personal loan at 8-12% APR. Either option can reduce monthly interest and simplify your payments. When negotiating with creditors, clients have settled 40-60% of the principal on charged-off accounts. Others have moved balances from 22% cards to a 10% personal loan, cutting their interest by about $1,800 a year on a $15,000 balance. Set yourself up an automatic payment schedule, start an emergency savings fund of $1,000, and apply the remaining cash flow to high-interest balances until you reach a target usage rate and establish an on-time repayment history.
Navigating the Complex Tax Terrain in New York Following a Divorce
Consult with your accountant or financial planner to ensure you understand the changes to alimony, transferring retirement accounts, and traps around capital gains so there are no surprises on April 15. There were notable tax changes for divorces finalized after December 31, 2018. Alimony is not taxable to the recipient and not deductible by the payor; transfers of property related to your divorce are generally tax-free as long as the transfer is made under IRC 1041; and a qualified domestic relations order (QDRO) allows a participant in a tax-deferred retirement account under ERISA to give an item of the retirement account to their former spouse.
Tax Consequences of Property Division on Long Island, NY
Dividing your marital home and dividing investment property have different tax consequences. Transfers due to divorce are generally non-recognized events under IRC 1041, meaning that the basis carries forward and gains will apply later. The home-sale exclusion of $250,000 for single and $500,000 for married filing jointly applies when you meet the two of five-year rule, so it’s possible to owe higher capital gains tax if you sell too soon after your divorce settlement.
Changes to Your Tax Filing Status & Other Considerations
Your tax due hinges on your marital status as of December 31, so it’s important to understand the consequences of fining single, married filing separately, or head of household. Head of household is usually better than single, since it offers lower tax rates and a larger standard deduction, provided you pay more than half the household costs and have a qualifying person living with you for most of the year.
If your divorce is finalized at year-end, you’re treated as not being married for that tax year, which changes your filing picture. Understand your child custody agreement and who gets to claim the dependents (generally the custodial parent has priority) and how exemptions or credits in the settlement affect your eligibility. A mistake here could cost you thousands and complicate your eligibility for credits like the child tax credit or earned income tax credit, so it’s important to coordinate with your CPA to document entitlements for inclusion in the settlement language.
Retirement Readiness: Planning Life After Divorce
You should recalculate your retirement timeline after your divorce, factoring in Long Island’s high housing and property tax costs and the reality that you may have 25 or 30 years of living in retirement. If you were married more than 10 years, check to determine if you’re eligible for spousal Social Security benefits. Determine whether a Qualified Domestic Relations Order (QDRO) is required when splitting 401(k)s or pensions to avoid tax implications and penalties. Be sure to update the named beneficiaries of any insurance plans, investment accounts or pensions, review your survivor options, and develop a new withdrawal strategy based on your reduced household income.
Reassess Your Retirement Goals After Divorce
You should assess your target income using a 70-80% replacement ratio and compare that to your current savings, Social Security payments, and any pension. Take into account the living costs on Long Island, your potential health care needs, and a 25-30-year funding horizon. If you relied on two incomes during your marriage, you should expect at least a 20-40% shortfall in household income. Develop best-case, middle-case, and worst-case scenarios to achieve concrete annual savings targets plus a timeline to recover your shortfall.
Maximize Your Investments and Savings for Tomorrow
I recommend consolidating retirement accounts, completing the necessary QDROs, and evaluating rollovers to reduce your fees and simplify management of your accounts. If you’re 50 or older, look into catch-up contributions and possible Roth conversions to balance future tax exposure from investments. Aim to save about 10-15% of your income for retirement, keep 3-6 months of cash reserves for emergencies, and pay off high-interest debt first if the interest rate would outpace your expected investment returns.
I recommend you focus on asset-allocation. Longer time horizons until retirement usually sit around 60/40 for equity/fixed income, with more bonds as you approach 65, and I recommend you rebalance annually. For example, saving $500 a month with a 6% annual return for 20 years grows to about $230,000. Adding extra contributions or a higher rate of return can push those numbers even higher. Efficient withdrawal strategies, a Health Savings Account (HSA) for medical costs, and working with a fiduciary advisor can significantly boost your net income in retirement.
Shifting Insurance Needs: Update Coverage, After Divorce
Health Insurance Considerations Post-Divorce
If you had health insurance under your spouse, you’ll likely have several options to get your own health insurance, including COBRA continuation, a plan from the NY State of Health Marketplace, an employer plan, or Medicaid. COBRA can extend coverage for up to 36 months, and premiums are typically about 100-102% of the plan cost. For example, if a family premium is $1,200 per month, the COBRA cost would be around $1,224. I recommend comparing monthly premiums, deductibles, provider networks, and subsidy eligibility. We can’t predict post-divorce income, so you’ll want to see if you qualify for subsidized Marketplace coverage or Medicaid on Long Island.
Life and Property Insurance After Divorce on Long Island, NY
I advise changing beneficiaries on life insurance, checking whose policy applies, and understanding conversion/portability windows for group coverage. Many group plans offer a conversion option within roughly 31 days.
For homeowners, verify that minimum dwelling coverage covers current rebuilding costs, and adjust your liability limits or add an umbrella policy (typically $1M-$5M) to protect against post-marriage exposure to shared assets. It’s common for divorce settlements to require preserving life insurance for alimony or child support, so if the settlement calls for a $300,000 policy, ensure it’s designated and owned per the court order and that the insurer files any required proof.
If you own the marital home in Nassau County or Suffolk County, get a current replacement-cost estimate because local rebuilding rates can push you to raise dwelling limits. Also notify your mortgage lender if ownership changes so their lien remains valid.
Finally, review umbrella policy exclusions and make sure your ex-spouse’s name is removed from liability exposure on your home and auto premiums. Request quotes showing coverage changes before you finalize your settlement to avoid gaps.
Careful Post-Divorce Financial Planning Is Critical for Long Island Residents
A carefully crafted post-divorce financial plan can help you manage your cash flow, protect your assets, rebuild your credit, mitigate your tax and insurance changes, and keep your retirement on track so your Long Island future is secure. I encourage you to adopt a realistic budget, seek help from a financial planner or CPA, and take advantage of the free counseling services available in Suffolk and Nassau to map out a solid action plan and regain confidence in your financial future.
Hornberger Verbitsky, P.C. Family Law Attorneys Can Assist in Financial Planning on Long Island, NY
In order to fully protect your rights and your finances post-divorce, you should seek the assistance of a Long Island, NY divorce lawyer experienced with financial planning like Hornberger Verbitsky, PC. When you set up your free consultation with us at we will discuss all the relevant facts and circumstances surrounding your case in order to get a better understanding of your situation and how we can best protect your assets. Call our office today at 631-923-1910 to schedule your complimentary consultation with one of our experienced Long Island divorce attorneys.
Choosing Mediation or Collaborative Law for Your Child Custody Case
Mediation and collaborative law have different limitations; determining which option will suit your case depends on how the dynamics of your family, your ability to communicate with your child’s other parent, and how complex your custody issue is. Mediation may be the best choice for uncomplicated cases where parents are more likely to cooperate with the process, while collaborative law may be more suited for when parents may need the structure of lawyers leading the negotiation. Your intentions with your family and the manner in which you prefer to interact with and resolve conflict will determine your choices in achieving a successful resolution without having to go to court.
Your Personal Circumstances
Your ability to negotiate and talk to your child’s other parent are likely the most important indicators of your ability to be successful in mediation. If you find direct conversation strained but both parties want to avoid litigation, collaborative law offers you legal support without engaging in disputes over a judge’s ruling. Factors to consider prior to deciding which process is most appropriate include, the history of your disputes, how quickly your arrangements need to be in place, and your level of willingness to compromise. I would encourage you to consider how much control you want over the process and the time frame for reaching a resolution.
Leveraging a Long Island Family Law Firm’s Expertise
Engaging an experienced local family law firm familiar with Long Island’s custody environment offers significant advantages. Experienced child custody attorneys can help you navigate mediation and collaborative law nuances, tailor strategies to your situation, and protect your parental rights. An experienced child custody lawyer’s knowledge of current New York custody statutes and outcomes from similar cases enables them to provide practical advice that balances legal standards with your family’s needs.
Working closely with an experienced Long Island family law firm provides access to professionals familiar with numerous custody arrangements from joint physical custody agreements to multiple visitation agreements that include complicated co-parenting schedules. Long Island family law lawyers will be practical and can provide objective and formal briefing in a process that optimizes discussions in mediation or collaborative law. For instance, an experienced child custody lawyer will know the past and current custody trends in your county, and can reasonably determine or anticipate potential custody issues as well as custody challenges that require attention. The knowledge gained from their experience can help you to focus not only in negotiations demonstrating objective standards and past legal possibilities, but allow you to enter the negotiations with reasonable expectations.
Mediation and Collaborative Law are Options to Take Your Child Custody Dispute Out of the Courtroom
If your personal situation suggests it, I would encourage you to consider mediation or collaborative law as an option to settle your custody issues. Mediation and collaborative law invite you to be at the table with your former spouse or parenting partner in a collaborative space supporting a constructive negotiation that typically leads to a uniquely personal and flexible custody agreement tailored to the specific dynamics of your family. By exploring the out of court processes available, you reduce your family’s stress and remain in control over an outcome that will best meet the unique needs of your family. If you are at an intersection of custody decisions, pursuing mediation or collaborative law may help to navigate a smoother path forward, but also a better relationship for the years to come, for you, your ex, and your child.
Hornberger Verbitsky, P.C. Family Law Attorneys Can Assist in Mediating Your Child Custody Case
At Hornberger Verbitsky, P.C., we have decades of experience in mediation and collaborative law that will help you craft a child custody arrangement that is unique to the diverse and one-of-a-kind situations of many different types of families on Long Island. We address all of your and your child’s best interest when drafting a flexible child custody agreement with clear communication and with detailed schedules. We consider your child’s needs and your situation while utilizing the New York State requirements for custody, so you can achieve a shared understanding of what has been agreed to. I encourage you to call us today to set up your no charge initial consultation and case assessment. Whenever you call 631-923-1910 or fill in the brief form on this page.
Should You Use a Parenting Plan Template or Hire a Lawyer?
Choosing between a generic parenting plan template and a custom plan tailored specifically to your family’s needs can significantly impact how smoothly custody arrangements unfold. Templates offer a straightforward, time-saving starting point, but may lack the flexibility to address unique situations like special visitation schedules or remote parenting. On Long Island, where court expectations can be meticulous, adapting a template to reflect local laws and your child’s best interests often leads to a more effective plan.
Pros and Cons of Using Parenting Plan Templates
| Pros | Cons |
| Ease of use with pre-written sections | May overlook specific family dynamics |
| Cost-effective compared to legal drafting | Risk of ambiguity without legal review |
| Speeds up the initial drafting process | Can be too generic for complex cases |
| Widely available online and through resources | Often lack guidance on New York law compliance |
| Good starting point for parents with amicable relations | Inflexible to unforeseen changes in schedules |
How a Long Island Family Law Attorney Can Help
Legal expertise helps tailor a parenting plan to your family’s unique needs while ensuring compliance with New York’s evolving custody laws. Experienced Long Island family law attorneys provide insight on factors such as jurisdiction differences on Long Island and help preempt common disputes through precise language. Suffolk and Nassau Family Courts often view professionally prepared plans more favorably, reducing the risk of modifications and extended litigation.
Working with a skilled family law attorney can uncover nuances like how weekend parenting time might interact with school calendars or how to best accommodate a parent’s work schedule. With their experience, they identify potential issues early and craft solutions aligned with court standards. This proactive approach not only safeguards your parental rights but also promotes stability and predictability for your child’s future.
Navigating the Decision: Template vs. Legal Support
Using a parenting plan template can save you time and help organize your thoughts, but it won’t cover every unique circumstance of your family’s situation. Legal support brings personalized advice and can address complex issues such as relocation, special needs, or enforcement mechanisms. Weighing the simplicity and accessibility of a template against the tailored guidance of a legal professional helps you decide which path best safeguards your child’s interests and complies with New York State requirements.
Benefits of Using a Parenting Plan Template
Parenting plan templates offer a clear structure for outlining schedules, communication methods, and decision-making roles without having to start from scratch. They help ensure you include vital topics like holidays and healthcare, reducing the risk of overlooking critical details. Many local templates reflect common legal standards, making them a helpful first step, especially if families are cooperative and disputes are minimal.
When to Seek Professional Legal Guidance for Your Parenting Plan
Complex custody arrangements, disagreements over parenting time, or concerns about child welfare often require the expertise of a family law attorney. Legal professionals can interpret New York laws, negotiate terms, and help enforce your plan if disputes arise. It is especially important to consult an attorney if either parent plans to relocate, if there are allegations of abuse, or if you anticipate difficulty reaching an agreement.
Engaging an experienced family law firm early can prevent costly court battles by clarifying rights and responsibilities right away. For example, in cases where one parent has a demanding work schedule or special medical needs for the child are involved, experienced family law attorneys can craft provisions that address these specific realities. They also ensure your parenting plan aligns with the latest state statutes and county court expectations, which vary over time and by county. This reduces the likelihood of needing costly revisions or modifications later on.
Leveraging Legal Expertise: The Role of a Long Island Family Law Attorney
Engaging a Long Island family law attorney can significantly strengthen your parenting plan by ensuring it aligns with New York’s specific legal requirements and addresses potential areas of conflict. I’ve seen attorneys skillfully tailor agreements to protect parental rights while prioritizing the child’s best interests. Their experience navigating local courts means they can anticipate challenges and suggest provisions that prevent future disputes, providing peace of mind as you move forward.
How Attorneys Can Enhance Your Parenting Plan
Attorneys bring detailed knowledge of custody laws and how they are interpreted on Long Island, helping you craft clear and enforceable terms around visitation schedules, decision-making authority, and dispute resolution. I’ve worked with clients who benefited from their attorneys’ ability to foresee complications and ensure these details fit the family’s unique circumstances. This foresight prevents ambiguity that often leads to court battles or misunderstandings down the line.
Situations When Legal Representation Is Indispensable
Legal representation becomes increasingly necessary when custody disputes grow contentious, accusations of neglect arise, or parental relocation is involved. In cases involving domestic violence or subpoenas for child protection investigations, having an experience attorney by your side ensures your rights and your child’s welfare are vigorously protected.
More detailed circumstances demanding legal representation include disagreements over parental relocation, where one parent plans to move child custody off Long Island or New York State altogether. Suffolk and Nassau courts carefully evaluate the impact of such moves on the child’s stability and relationships, often requiring expert testimony or mediation. Additionally, cases involving allegations of abuse or substance misuse compel thorough legal defense or intervention to safeguard the child’s safety, emphasizing the need for experienced counsel to navigate protective orders and social service involvement.
The Value of Expertise: How a Long Island Family Law Attorney Can Facilitate Your Parenting Plan
A Long Island family law attorney brings more than legal knowledge to your parenting plan — they can offer nuanced insight into Nassau and Suffolk family court tendencies and New York state custody guidelines. I have often seen how an experienced attorney’s involvement can clarify complex issues like decision-making authority, visitation schedules, and dispute resolution mechanisms, helping you avoid vague language that breeds conflict. A family law attorney’s expertise can ensure your plan not only complies with New York state law but also anticipates potential challenges, guiding you toward a more stable and workable arrangement tailored specifically to your family’s needs.
Tailoring Your Plan to Fit Legal Standards
New York state law prioritizes the child’s best interests, requiring parenting plans to detail custody, visitation, and communication clearly. As your attorney, I would help structure your plan around these mandates, incorporating specifics like holiday schedules, transportation logistics, and healthcare decisions to align with legal expectations. This approach minimizes court pushback or revisions, safeguarding your plan’s enforceability while reflecting your family’s unique dynamics.
Mediating Between Parties for Optimal Outcomes
Facilitating productive dialogue between parents often defuses tension and fosters cooperation. I guide negotiations toward realistic compromises, balancing each parent’s concerns with the child’s stability. Mediation reduces costly court battles, allowing you to resolve disagreements by focusing on your child’s consistent care rather than conflict.
I’ve observed how skilled mediation facilitation can transform contentious standoffs into mutually acceptable agreements. With techniques like active listening and reframing issues, I help parents identify common goals, whether it’s coordinating schedules around work commitments or agreeing on educational choices. For example, in a recent Long Island case, mediation helped parents navigate differing opinions on extracurricular activities, resulting in a flexible schedule that honored both viewpoints. These outcomes stem from a mediator’s ability to maintain impartiality and focus on practical solutions rather than emotional disputes, which ultimately creates a stronger, more durable parenting plan.
A Strong Parenting Plan Ensures a Smooth Child Custody Experience on Long Island
With these considerations in mind, I believe you can create a strong parenting plan structure that supports your child’s best interests and fits the unique dynamics of your family. By clearly outlining schedules, communication methods, and responsibilities, you provide stability and clarity for everyone involved. Your thoughtful approach will not only align with Long Island child custody standards but also help reduce stress during an already challenging time. I encourage you to take the time necessary to craft a plan that truly works for your family’s needs.
How Hornberger Verbitsky, P.C. Family Law Attorneys Can Help with Your Parenting Plan
At Hornberger Verbitsky, P.C., we have decades of experience creating parenting plans that address New York state standards , Nassau and Suffolk court preferences and most importantly, the unique circumstances of your family. We focus on clear communication, detailed schedules, and flexibility when creating your parenting plan to address your child custody options. By addressing your child’s needs and following New York State guidelines, you can help ensure both you and your ex have a shared understanding and commitment. The well-crafted plan we will help you create will support your child’s well-being and reduce stress during these challenging times. Contact us now for a free initial consultation and case evaluation. Our team is ready to help you when you call 691-923-1910 or fill in the short form on this page.
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Horberger Verbitsky, P.C. partners Robert E. Hornberger, Esq. and Christine M. Verbitsky, Esq.
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About the Author
Robert E. Hornberger, Esq., Founding Partner, Hornberger Verbitsky, P.C.
- Over 20 years practicing matrimonial law
- Over 1,000 cases successfully resolved
- Founder and Partner of Hornberger Verbitsky, P.C.
- Experienced and compassionate Long Island Divorce Attorney, Family Law Attorney, and Divorce Mediator
- Licensed to practice law in the State of New York
- New York State Bar Association member
- Nassau County Bar Association member
- Suffolk County Bar Association member
- “Super Lawyer” Metro Rising Star
- Nominated Best of Long Island Divorce Attorney four consecutive years
- Alternative Dispute Resolution Committee Contributor
- Collaborative Law Association of New York – Former Director
- Martindale Hubbell Distinguished Designation
- America’s Most Honored Professionals – Top 5%
- Lead Counsel Rated – Divorce Law
- American Institute of Family Law Attorneys 10 Best
- International Academy of Collaborative Professionals
- Graduate of Hofstra University School of Law
- Double Bachelor’s degrees in Philosophy, Politics & Law and History from SUNY Binghamton University
- Full Robert E. Hornberger, Esq. Bio
Frequently Asked Questions About Financial Planning After Divorce
Q: Why is post-divorce financial planning important for Long Island, NY residents?
A: Divorce changes your income, taxes, housing needs and costs, and benefits all at once. On Long Island, where housing costs, property taxes, and commuting can be expensive, re-checking your cash flow, emergency savings, and long-term goals right after your settlement can help you avoid financial shortfalls, protect your future credit, and build a sustainable plan for housing, kids’ costs, and retirement.
Q: What steps should I take to create a realistic budget after my divorce?
A: Start by listing every source of income (wages, child support, alimony, investment income) and all expenses (fixed and variable). Don’t forget new housing costs, utilities, insurance, and transportation. Build a three-to-six-month emergency fund, pay off debt starting with the highest interest rate, cover your taxes, make retirement contributions, and track your monthly cash flow with a budgeting tool or worksheet. Review the budget every three months in the first year and adjust as needed.
Q: How should I handle joint debts and credit after my divorce?
A: Identify all joint accounts and liabilities, like credit cards or loans. Tell the creditors about your divorce and work to close shared credit lines or remove your name from joint accounts. You’ll likely need to refinance your house or car loan into one person’s name after you’ve made the proper changes. Keep paying joint accounts until they’re officially separated to avoid collections. Check your credit report for mistakes and dispute anything that’s incorrect. Start rebuilding your credit with on-time payments, or a secured card or small installment loan if necessary.
Q: What tax issues do I need to consider when finalizing my divorce settlement in New York?
A: Important points include: (1) For divorces after 12/31/2018, alimony isn’t deductible by the payer or taxable to the recipient. (2) Child support isn’t taxable income and isn’t deductible. (3) Property transfers as part of divorce are generally non-taxable, but selling assets later may trigger capital gains. (4) Changing your filing status can affect tax brackets and eligibility for credits; custody arrangements can affect who can claim dependents and credits. We recommend working with a CPA early to model taxes for the first year and any long-term effects.
Q: How are retirement accounts divided and where does a QDRO come into play?
A: For employer-sponsored plans (401(k), pensions, etc.), a Qualified Domestic Relations Order (QDRO) is usually needed to assign benefits to a former spouse without penalties. IRAs can generally be divided as part of the divorce via a transfer provision in the settlement, and don’t require a QDRO, but treat the divided IRA as a direct trustee-to-trustee transfer to avoid a taxable distribution. When dividing retirement accounts, consider survivor benefits, required minimum distributions, and how the division will affect you in the long run.
Q: What if I have to change insurance and health coverage after divorce?
A: Divorce can affect your eligibility for your spouse’s employer-sponsored health plan. COBRA may let you keep coverage for up to 36 months, and there may be more affordable options or subsidies through the ACA marketplace. Update beneficiaries on life insurance, and you may need to increase coverage if it’s tied to a support obligation. Review disability, auto, and homeowners policies for updates and decide who’s responsible for coverage if a claim comes up.
Q: When should I be hiring a financial advisor and CPA on Long Island?
A: Bring in a CFP or CPA if you’re dealing with complex assets (business, multiple properties, large retirement accounts), if you need tax modeling, if you’re nearing retirement, or if you have little prior investment experience. No-cost or low-cost resources include nonprofit credit counselors, HUD-approved housing counselors, and Nassau and Suffolk county bar association lawyer-referral services for budgeting, credit help, and legal referrals. Take control of the financial future you want. Our experienced attorneys can connect you with trusted financial professionals in Suffolk and Nassau Counties.