After being in an unfulfilling marriage, people in New Jersey may naturally embrace the opportunity to divorce and start living independently again. However, divorce has long-term financial implications that are important to consider when going through the process. A couple of tips may help people navigate this type of family law proceeding with their future finances in mind.
First, it is essential for people to closely look at the incomes they earn each month as well as their potential alimony. They would also be wise to determine how much money they are paying in taxes every month and how much is allotted for a 401(k) plan and health insurance. A person's net monthly income amount can then be compared to how much he or she really needs to spend each month.
Tracking expenses properly will give people an idea of how well they will be able to live without a future ex-spouse's income. However, the process is not always easy. One of the easiest ways to track expenses every month is to use no more than a couple of credit cards for as many transactions as possible, as the credit card companies will tally a person's expenses for him or her. It is best for people to avoid using cash if they wish to track their expenses. People who have long-term objectives for the time when they retire or their alimony ends may also want to begin saving to achieve these goals.
Although the divorce process in New Jersey can be overwhelming, proper financial planning may help people feel more in control of the process. Appropriate legal guidance may also help people learn all of their rights when it comes to the division of assets and property. Both individuals who are divorcing have the right to fight for their best interests while keeping in mind the other person's needs.
Source: Forbes, "New Year, New You: 3 Financial Tips For The Newly Divorced", Mark Avallone, Dec. 29, 2015