If you are currently involved in, or have recently completed the divorce process, a change in your financial situation is inevitable. Financial considerations are a critical component of every divorce, encompassing issues such as alimony and spousal support, division of assets, and child support, if applicable. These issues, once resolved, will transform your financial situation from one unit to two separate individuals, each of whom are now responsible for planning for their financial futures.
More likely than not, your financial situation as an individual will be slightly, if not considerably, different from what it was when you were married. The immediate impacts may be felt in with a change in your lifestyle, while the long-term implications may not be evident at first, but are equally important for your life as you age and ultimately, retire. Fortunately, with the right information and a knowledgeable support system, you can take the necessary steps to maintain and protect your financial situation both during and after divorce.
The first and perhaps most vital move that you can make toward financial security is to assemble a team of professionals who can assist you through the divorce process. This team should be comprised of an experienced divorce and family law attorney and a Certified Divorce Financial Analyst. These two key resources can help you to evaluate the potential implications of a range of potential divorce settlements, as well as helping you to formulate potential proposals regarding significant assets, such as the marital home. In cases involving more complex property distribution, or high net worth divorce, it is often advisable to consult with additional experts, such as Certified Public Accountants, who can provide you with an in-depth analysis of your current financial situation, as well as the tax implications of potential decisions during the divorce process.
While preparing for your divorce, it is essential to develop a comprehensive understanding of your financial situation. This will provide invaluable insight into your needs, goals, etc. moving forward. Examining your savings and liabilities (debt) as a couple will help you to make more informed decisions during your divorce. Evaluating your current expenses is equally as important, as it will allow you to consider your necessary expenses and discretionary spending after your divorce is finalized.
Once you have completed the divorce process, there are a number of ways to plan for a successful financial future. First and foremost, assess your current income, accounting for alimony payments made or received, child support, and necessary expenses. Devising a financial plan for spending and saving will provide you with a necessary framework from which to maintain your lifestyle and plan for retirement. Your spending plan will allow you to take control of your financial situation and structure your life with your goals in mind. When constructing a spending plan, be sure to review your current insurance policies, including medical insurance, life insurance, homeowner’s insurance, etc. Having adequate coverage is crucial to protect yourself from issues that may arise in the future.
Also, make sure that your credit is now reflective of you as an individual, not you and your spouse. Closing any joint accounts and running your own credit report will allow you to start fresh with a clear vision of your financial standing. With all of the pertinent information, you can work with a financial planner and/or investment broker to develop a savings and investment plan driven toward achieving your goals. By saving and investing, you can position yourself to enjoy a financially-stable life and a secure financial future.
For additional information related to finances during your divorce in New Jersey, contact the Bergen County law offices of Townsend, Tomaio & Newmark at 201-397-1750 today. One of our divorce and family law attorneys will be pleased to provide the answers to your questions during a cost-free consultation.