When spouses in New Jersey get divorced, they need to be careful about their finances. It’s good to start by creating a budget. This can be a temporary plan that’s just for the next few months. As one settles into their new life and gets a realistic sense of their expenses, they can adjust everything for the longer term.
There are several points to consider when dividing marital assets. Exes should think about how much asset liquidity could be required and whether there are tax implications. For example, some types of retirement accounts are tax-free while others are not, and this will affect their actual value. A person who was married for at least 10 years might be able to draw on a higher-earning spouse’s Social Security benefits for retirement purposes.
It’s best to pay off debt before the divorce is final if possible. If the debt becomes one spouse’s responsibility, the other spouse might want the ability to monitor the payments.
Some documents may need to be updated after a divorce. This could include wills, beneficiary designations and property titles. Passwords and names on accounts may also need changing.
It can be difficult to navigate these issues during the emotional turmoil of divorce. However, an attorney can help a soon-to-be ex prioritize necessary tasks and make a plan for property division. While many exes can negotiate an agreement instead of going to court, it’s helpful to walk into these negotiations with a strategy. The couple may also be able to reach an agreement on child custody.