We recently wrote about changing tax implications and their impact on future divorce cases in New Jersey. However, taxes are far from the only financial implication when it comes to divorce.
Forbes recently reported common money mistakes often made during a divorce. For many, the holidays are a joyous time. But for many others, it will be their last holiday together. Annual statistics show most couples divorce either after summer break or after the winter holidays.
Early consultation with an experienced Freehold divorce lawyer can help alleviate the mountain of stress and uncertainty that often builds before a divorce. We are your resource. It’s our job to make sure your new life is built on a solid foundation. In retrospect, many couples view this pre-divorce time as the most stressful. Seeking legal help and taking other proactive measures means you are re-seizing the control of your life that is often vital to peace of mind.
Common money mistakes divorcing couples make include:
Retail therapy: Money problems often lead to divorce. So continuing unsound spending habits (or starting them) can quickly tank your finances. Building a new life will initially involve the expense of creating two households on the same income. For those contemplating a divorce, getting your financial house in order is absolutely the place to start.
Cashing out: Selling investments, withdrawing from a 401k or selling the marital home or other real estate can create significant tax issues. Making such financial moves may also be looked upon unkindly by the court when deciding an equitable distribution of property.
Forgetting the taxes: Our Middlesex and Monmouth divorce lawyers recently wrote about coming tax changes, particularly in how the Internal Revenue Service will view spousal support in 2019. Making sound financial decisions requires significant tax planning.
Fighting for the house at all costs: We recently wrote about this issue on our family law blog. In some cases, fate of the marital home can be wrought with nearly as much emotion as child custody. Sound financial planning will help you avoid a win-at-all-costs mentality, and may even make it easier to move on to a fresh start if it proves to be in your best interest.
Quitting your job: The court may look unkindly on your sudden career change, particularly when it comes to employment moves aimed at reducing your ability to pay child support or alimony.
The start of the new year is also a time when most couples get annual tax and financial statements. Early consultation with an East Brunswick and Freehold family law attorney can also allow you to carefully review household finances. This can be particularly beneficial for a spouse who is financially dependent, or in cases where one spouse has handled household finances.
When handled properly, and with the careful planning required for all important life decisions, divorce should be a time of independence and renewal.
Call Rozin|Golinder Law, LLC today for a free and confidential consultation.