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Preparing finances for the future during a New Jersey divorce

One of the main concerns for a New Jersey resident who is ending a marriage is money. Facing an uncertain financial future can be frightening. That is why both short-term and long-term planning are a critical part of the divorce process.

Before the parties can sit down to negotiate a divorce settlement, they each need to have a full understanding of their current financial situation, along with what their independent monetary needs will be in the future. This often involves creating a post-divorce budget to determine what it will take to run a separate household. Further, an examination of the marital assets such as the home, retirement accounts and investment accounts is also necessary in order to fully understand their value.

Even when New Jersey couples divide their property relatively equally, it is still going to be less than what they had together. This needs to be taken into consideration when planning for the future. Retirement goals will need to be reset to account for post-divorce income level, years left to retirement and the monthly expenses calculated for the short-term financial needs. Understanding both the short-term and long-term needs can help direct settlement negotiations for each party.

The financial changes that accompany a divorce are going to come regardless. How prepared each party is to make the necessary adjustments could directly influence his or her success in the future. Obviously, financial planning and informed settlement decisions are not going to eliminate the stress that comes with divorce, but they can soften the blow and may help the parties preserve economic stability.

Source: The Huffington Post, "Resetting Your Retirement After Divorce", Jason Alderman, April 23, 2015

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