One of the most frightening parts of divorce in New Jersey is dealing with one's finances. People may understandably be worried about how they will financially support themselves without their spouses' incomes and whether they will end up losing their homes. Some tips may help people who are going through the divorce process protect their financial futures.
For starters, it is wise to keep in mind that not all pieces of property are created equal. A house that has been appraised at $500,000, for instance, is not financially equivalent to a retirement account whose present value is $500,000. Likewise, this same house is not financially equivalent to a family business that grosses $500,000 per year. Before one agrees to keep or give up an asset, it is important to find out the asset's value, cost basis and tax consequences.
It is also wise to develop a new budget. A budget will give a divorcing person a realistic look at what he or she needs to live on. It can also prove helpful in divorce settlement negotiations.
Sometimes couples in New Jersey can resolve asset distribution and property division matters by negotiating or mediating their divorces. This helps to prevent the stress associated with litigation and can end up helping them to save on costs. However, if a couple cannot reach a mutually satisfactory settlement, a judge will have to get involved and decide on the settlement for them. Both parties have the right to fight for their best interests when it comes to dealing with the financial matters of divorce.
Source: The Huffington Post, "7 Financial Tips for Women Facing Divorce", Jennifer Leighton, Dec. 1, 2015