Divorce is seldom easy, even for those who initiate the process. Not only do divorcing spouses in New Jersey often deal with the emotional fallout of a breakup, but many face financial struggles in the months and years afterward. One way to reduce the chances of financial hardships following a divorce is to ensure one receives an equitable share of property division and fair consideration for other financial issues during the divorce process.
While it is easy for spouses to become mired in the heartbreak of divorce, this may prevent them from making the plans necessary to avoiding receiving an unfair settlement or court order. It is important for anyone facing a marriage breakup to think clearly about critical issues that often bring long-term consequences. For example, a spouse will want to protect any assets that are not part of the marital estate, such as an inheritance or items protected by a prenuptial contract.
Many couples overlook the impact of taxes and inflation on their divorce settlements. Splitting certain retirement accounts can bring about negative tax ramifications, and even spousal support carries new tax burdens. Those expecting financial settlements that involve long-term payments, such as alimony, child support or educational accounts, should also consider the effect inflation may have on those payments. Finally, debt can be a complex issue to divide, and a divorcing spouse will want assurances that he or she is not left with the responsibility for the other partner’s debt.
Full disclosure of assets and debts from both spouses is a critical step in preparing for property division in a divorce. For many, divorce is a complex process with numerous chances for critical financial mistakes. Having an attorney who is experienced in the divorce laws of New Jersey can mean the difference between coming through a divorce financially stable or facing years of unnecessary struggle.