What Are The Most Common Financial Mistakes During An NJ Divorce?
Posted January 20th, 2023.
The divorce process is complicated, especially when it comes to the financial side of things. If you’re considering divorce or just beginning the divorce process, you might be worried about the most common pitfalls for divorcing spouses. Thankfully, our law firm is here to help! This blog discusses typical financial mistakes that divorcing spouses make during the divorce process and how you can avoid them. Read on to learn more, or reach out to a Cherry Hill No-Fault Divorce Attorney today for high-quality legal counseling.
WHAT FINANCIAL MISTAKES SHOULD I AVOID IN A NEW JERSEY DIVORCE?
The best way to avoid the most common divorce financial mistakes is by putting in the effort to have a clear understanding of your financial situation. New Jersey is an equitable distribution state, so assets are divided fairly between spouses but not necessarily 50/50. Essentially, this means that your financial status will be completely different post-divorce than your financial status during the marriage.
To get a clearer idea of your post-divorce finances, you should track your expenses, assets, and income in order to establish a monthly budget. This is a great way to keep an eye on your finances so you don’t overestimate how much you have. Some spouses choose to keep the family home after a divorce for sentimental reasons but later find that they can’t keep up with mortgage/rent payments and maintenance. It’s best to make realistic financial decisions by viewing your finances as a whole and taking into account taxes and inflation.
WHAT ELSE SHOULD I BE AWARE OF?
No matter what type of divorce you’re filing for, it’s always best to hire a divorce lawyer who can guide you through the process. This is especially important when it comes to legal documents that you might need for your finances. Many spouses might not have even heard of a Qualified Domestic Relations Order (QDRO), but these legal forms are highly beneficial. You’ll need to have a lawyer help you file a QDRO if you’re planning on receiving payments from your ex-spouse’s retirement plan after the divorce. If you’re receiving alimony or child support payments from your ex-spouse, you may want to ask them to get life or disability insurance so that your future payments are protected.
Are you considering filing for divorce in New Jersey? Are you seeking a compassionate divorce attorney who has your best interests in mind? Look no further because the Law Offices of Mark S. Guralnick is here to fight for you! Contact our highly experienced team today for an initial consultation.