Financial Topics to Discuss during Divorce Mediation in New York

Wise couples who participate in divorce mediation in New York realize the benefits that mediation provides and take advantage of this opportunity to work out a comprehensive settlement agreement.  Due to the extra time that they have with a professional who can help them, consideration may be given to the following during divorce mediation in New York:

Tax Implications

There are many decisions that a couple can make during the divorce process that have potential tax implications, including the date they decide to get divorced, their tax filing status, whether they split retirement accounts or whether they sell assets.  Couples should attempt to minimize their tax liability while settling their marital estate.  Likewise, consider the tax implications of making a certain trade.  For example, if receiving an investment less the taxes owed on it is less than the value of an asset you are trading for the same pre-tax value, this may not be a good deal for you.

Effect of Inflation

Couples should also carefully consider the effect of inflation.  If there are future financial expenses, the true cost of them should be factored into the calculations, not only the present value.

Insurance

It is possible that the parties work out a fair divorce settlement that takes their mutual needs into consideration.  However, an unexpected illness, disability or death can destroy this agreement.  Many couples include insurance clauses in their divorce settlements to safeguard support obligations and other provisions in case catastrophe occurs.