The divorce process can be complicated and difficult for various reasons, but the financial aspect of divorce is often the most stressful for couples. This is because divorce has substantial effects on a spouse’s finances due to the fact that marital property and assets are divided between both spouses during the process. Have you ever wondered about the most common financial mistakes during a New Jersey divorce? Thankfully, our firm is here to provide the answers you need. To learn more, read this blog or reach out to one of our Union County Divorce Attorneys today!
WHAT ARE THE MOST COMMON FINANCIAL MISTAKES FOR A NEW JERSEY DIVORCE?
Overall, the biggest financial mistake that spouses make during a divorce is simply not having a good understanding of their finances. If you’re getting a divorce, you need to be aware that your financial situation will be entirely different than how it was during your marriage. Overestimating your finances can lead to disaster.
It’s fairly common for spouses to make financial decisions based on their emotions without thinking about the possible repercussions. For example, some spouses might try to keep their family home because it holds certain sentimental value. While this is entirely understandable, divorcees can’t always afford to keep up with rent or mortgage payments after splitting their marital assets with their ex-spouses. You’ll also need to consider whether you can afford the maintenance of the home and property taxes.
HOW CAN I AVOID POOR FINANCIAL DECISIONS?
The best way to avoid some of these common pitfalls is by keeping a careful eye on your finances and by viewing your financial issues as a whole rather than individually. You can establish a monthly budget by tracking your income, expenses, and other spending. It’s always better to plan for the future, so you’ll need to consider inflation when evaluating your finances too.
WHAT ELSE SHOULD I BE AWARE OF?
There are some legal documents that can be extremely helpful for settling your finances during a divorce, but not all spouses are aware of them. This is why it’s always helpful to hire an attorney who can guide you through the process and provide quality counseling. For example, a lawyer can help you file a Qualified Domestic Relations Order (QDRO). You’ll need one of these if you’re planning on still receiving payments from your ex-spouse’s qualifying retirement plan. If you’re set to receive alimony or child support payments after the divorce, you might want to ask your ex-spouse to obtain life or disability insurance so your payments are protected in the future.
If you’re considering filing for a divorce in New Jersey, you might be seeking a highly experienced divorce lawyer who has your best interests in mind. Look no further because Ross & Calandrillo, LLC is on your side! Contact our effective team today for an initial consultation.
