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Making a Fresh Financial Start After a Divorce

New Jersey divorce often brings many changes, often painful or unpleasant, to one’s life. However, it can also be an opportunity for a fresh start. Property division orders in a divorce decree can set the stage for effective long-term financial security, which is why having an experienced Colts Neck divorce attorney handling your case is so imperative. A comprehensive financial strategy before, during and after divorce can protect litigants from damaging consequences now and in the years ahead.Man Holding a Piggy Bank

Financial Planning Before a Divorce

When contemplating a separation or divorce, spouses should carefully and honestly evaluate their current financial situation. It is common for spouses to take a hit on lifestyle accommodations, simply because maintaining separate households on essentially the same income is inherently more expensive. Many discover sale of assets is necessary. Our divorce attorneys work hard to ensure the impact to our clients is minimal, but a comprehensive assessment of assets, debts, expenses and income (current and projected) is required.

Planning for the immediate monetary impact of a separation is a top priority. A physical separation often results in at least one spouse incurring additional living expenses. These conditions may continue at least until a divorce is finalized. A spouse who leaves the marital home must be prepared for this expense, as well as the hit to one’s credit score that may result if payments on the marital home lag. If your name is on the mortgage, you’re still legally bound to maintain those payments too. Many pay for these costs with credit cards, personal loans or other financing options. This debt has the potential to snowball and plague divorce litigants long after the dissolution is ordered. Mapping out a conservative financial plan before filing for divorce can be helpful.

Financial Planning During a Divorce

A legal separation or divorce can be a lengthy process. That’s why it’s important to continue financial planning during divorce. Good Colts Neck divorce attorneys can help litigants prepare for what is likely to occur with property division, alimony and other financial aspects of a divorce decree. As a case develops, litigants can use their attorney’s guidance to make plans based upon what is likely to happen. An attorney can also help litigants decide what strategies will best promote their financial well-being after divorce, and which may be less critical.

No divorce lawyer can guarantee a given outcome (and you should be wary of any who do), though we can give solid projections based on the known facts. Still, because family law judges hold great discretion, divorcing spouses should be conservative in their estimates and cautious in their assumptions when it comes to their right to any asset or sum. Clients should develop a flexible financial plan that considers these contingencies.

Financial Planning After a Divorce

Financial planning does not end upon divorce finalization. For many, an award of property or alimony is a long-term asset designed to sustain them for a given time, and one must use these assets wisely. Ensure that physical assets (such real estate, jewelry and other personal property) are properly maintained to prevent unnecessary depreciation. Financial planner advice is often recommended to promote the chances of a long-term return-on-investment and financial security. Our divorce attorneys work with a team of professionals that can help you with investing for your future.

A Colts Neck divorce attorney can help divorcing spouses determine fair division of financial assets and liabilities and help clients choose whether to accept a proposed property settlement or fight for a more favorable outcome in trial.

If you have questions about the division of assets or allocation of debt in a divorce, contact the Colts Neck property division attorneys at Rozin-Golinder Law LLC by calling (732) 810-0034.

Additional Resources: 8 Tips to Help You Start Over Financially After Divorce, by Krystal Beers-Miller, Quicken Loans blog, May 30, 2017.

More Blog Entries: How is Property Division Handled in New Jersey?, December 27, 2016, New Jersey Family Law Attorney Blog

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