A divorce can range from less costly to quite expensive. It largely depends on the nature of the divorce you’re about to go through, whether that’s contested or uncontested. Regardless of the type of divorce you’re about to face, it’s important to plan ahead. Given its significant impact on your life, it’s crucial to take steps to lessen its potential effect on your finances.
To prepare yourself, here’s how you can do that.
Get familiar with your financial standing
You might find it less stressful if you clearly understand your financial standing when preparing for divorce. This preparation could involve compiling an inventory of your assets, liabilities, income, and expenses. Gathering documents like bank statements, property deeds, and investment portfolios could be part of this process.
When you analyze these documents carefully, you can gain a clear understanding of your financial situation. This insight can inform your decisions as you financially prepare for divorce.
Prepare for potential changes in asset ownership
It’s important to understand how asset ownership can change when a marriage ends. New Jersey operates under an ‘equitable distribution’ principle for dividing marital property, which isn’t an even split of all your assets and liabilities. Instead, this means the state courts aim to distribute these assets and debts in a manner that is fair to both parties, which might not always be equal.
Consider how this could potentially impact your financial situation and prepare for the possible reallocation of assets like your:
- Home
- Vehicles
- Retirement funds
- Businesses
- Other investments
Knowing how your assets will be divided can help you avoid financial shocks and enable you to plan your next steps more effectively.
Consider seeking the right professional
Divorce can often be complex and likely financially draining. So, consulting with an attorney experienced in New Jersey family law might be worth considering. A legal professional can help paint a clearer picture of what divorce could mean for your finances, how state laws could come into play when managing your assets and assist in planning for your future financial health.
