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Divorce –the importance of financial planning

On Behalf of | Oct 25, 2017 | Divorce

Gender roles have changed greatly over the last fifty years, and men are not the only breadwinners anymore. Changing roles have led to changes in how families handle their finances. This means that when a New Jersey modern couple contemplates divorce, it is important that both spouses consider financial planning for the new future.

When a couple starts talking about the possibility of divorce, it is important that each party evaluates his or her own financial position by listing all liabilities and assets. It may be beneficial to draw up a budget considering which debts must be paid by whom as well as any future needs that may arise. It is also important that decisions must be made regarding what will happen to joint property as well as college funds for children.

If there are minor children involved, one of the parties may be required to pay child support. Child support payments cannot be deducted from tax. In turn, it means that the recipient is not taxed on the payments received. Apart from child support, one of the parties may also be required to pay alimony. Unlike child support, alimony payments can be deducted from tax, while the recipient must report it as income.

After the divorce, it is important to get all personal matters in place. This means, among other things, making sure that beneficiaries are updated and a will is current. It is also important to reconsider one’s view on investing and planning for a secure financial future.

A consultation with a New Jersey family law attorney may benefit a person contemplating divorce. The assistance of an experienced family law attorney can help one obtain clarity about the financial matters one should think about and plan for. Financial security remains a priority, especially as one starts a new life as a single person. 

Source: www.cnbc.com, “Financial planning for divorce — it’s not just for women“, ‘Beth Lynch, Oct. 02, 2017