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Family law proceeding: Divorce has financial implications

Sometimes a New Jersey marriage does not work out in the long term, in which case going through the divorce process is inevitable. Several issues have to be addressed in the area of asset division, which can be overwhelming no matter how few or many assets a person has accumulated. A few tips may help individuals to navigate this type of family law proceeding.

One major issue to tackle is the marital home. The two divorcing parties have to decide if the family house will be transferred to one or the other, or if it will be sold as part of the divorce settlement. It is important to calculate the amount of the outstanding mortgage. If the house will end up being transferred to one party, it is also necessary to review the cost basis for improvements as well as compute the tax cost, if any.

Retirement planning is another important aspect of finances to consider during a divorce proceeding. Retirement plans need to be listed, and any interest in a retirement plan has to be reviewed. In addition, if the divorce decree will provide a payout from a retirement plan, a qualified domestic relations order, or QDRO, may be used to accomplish this. Beneficiary designations may also need to be changed on retirement plans.

Divorce can pose both financial and emotional challenges in New Jersey. This can make it easy for people going through this type of family law proceeding to make irrational decisions and thus costly mistakes. Appropriate legal guidance may enable people to pursue divorce settlements that will be benefit them financially in the long run.

Source: thebradentontimes.com, "Guido's Weekend Financial Wisdom: The Checklist for a Divorce", Evan R. Guido, Nov. 5, 2016

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