The financial side of the divorce process can be complicated for many divorcing couples. Consequently, spouses often worry about the most common financial mistakes that people make during this difficult time. No need to panic because our law firm is here to help! This blog discusses the various financial mistakes that you might come across during your New Jersey divorce and provides tips on how to avoid these common pitfalls. Continue reading or contact one of our Divorce Attorneys in Bergen County, NJ today.
WHAT ARE THE MOST COMMON FINANCIAL MISTAKES DURING THE DIVORCE PROCESS?
Overall, the biggest mistake that divorcing spouses make is not having a clear understanding of their finances as a whole. New Jersey is an equitable distribution state, so your marital assets will be split equally but necessarily 50/50. If the property division is left up to the courts, the judge will take various factors into consideration when splitting your assets. This means that your financial status will be completely different after a divorce than your financial status during the marriage.
To get a full picture of your post-divorce finances, you should track your expenses, income, debts, and other assets. Instead of viewing each financial issue individually, you should view your finances as a whole so that you can successfully establish a monthly budget. This could prevent financial pitfalls in the future. It’s best to make financial decisions based on logic rather than just emotions. For example, many spouses might choose to keep their family home for sentimental reasons even if they can’t afford the mortgage or rent. Poor decisions like these can be disastrous to your future financial status.
WHAT ELSE SHOULD I BE AWARE OF?
It might be helpful to hire a divorce attorney who can guide you through the process because there are plenty of legal documents that many divorcing spouses don’t know about but are extremely helpful. For example, have you heard of a Qualified Domestic Relations Order (QDRO)? You’ll need a QDRO if you’re planning on still receiving payments from your ex-spouse’s retirement plan after the divorce is qualified. An attorney can help you file this legal document. Also, if you need to receive alimony or child support payments, you should consider asking your ex-spouse to get life or disability insurance to make sure your future payments are protected.
Are you considering filing for divorce in Bergen County, New Jersey? Are you seeking a highly experienced divorce lawyer who has your best interests in mind? Look no further because Townsend, Tomaio & Newmark is on your side! Contact our effective team today for an initial consultation.