The two things that often spark the most worry in individuals during divorce in New Jersey are their children and their money. Unfortunately, worrying about finances does not prevent these individuals from making big monetary mistakes during the dissolution of a marriage. There are several common mistakes that people make when going through divorce.
First, it is important for people to complete accurate post-divorce budgets prior to settling. A budget serves as a roadmap that helps when navigating the process, particularly when dealing with areas such as asset division and property distribution. It is also important to insist on obtaining all of one's financial documents as well as those belonging to one's spouse. These documents help to ensure that people's budgets and balance sheets accurately report their financial situations.
It is additionally wise to get assets valued during divorce. This involves getting a house appraised and the pension of a spouse valued, for example. The appraisal process does cost money and time, but getting an asset valued gives one a clear picture of how much one or a future ex will be getting in the divorce settlement.
Although the family law proceeding of divorce can cause financial and emotional stress, understanding one's options and rights may increase one's chances of achieving a favorable settlement in as amicable a way as possible. Through divorce mediation or negotiation, two divorcing individuals may avoid further court intrusion. However, if two people in New Jersey cannot find common ground during divorce, a judge will have to make major financial decisions for them.
Source: The Huffington Post, "10 Financial Mistakes to Avoid in Divorce", Karen Covy, Feb. 8, 2016