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What financial steps and considerations may benefit divorcing spouses?

On Behalf of | Aug 20, 2021 | Property Division

Divorce in New Jersey involves dividing assets between the two spouses. The process could prove costly when one or both spouses make mistakes with their finances. Protecting and preserving assets could become a top priority for someone who worked hard to build up significant savings and investments.

Following through with specific financial steps

One fundamental step involves taking a financial inventory of all assets. Records and copies of all financial statements could reveal a complete picture of net worth. Reviewing the statements also reveals both individually held and joint accounts because statements show proof of ownership and balances. These documents serve as evidence in court, so preserving and organizing them is a wise plan.

As for joint accounts, the other spouse could withdraw the money at any time. Perhaps taking steps to secure liquid capital in any money market, checking and savings account is a smart move. Remember, once someone withdraws and spends money from an account, the funds are gone.

Additional financial steps to take

Spouses may benefit from compiling accurate records of debts and obligations. These bills require payment, and such commitments may affect property division settlement discussions. If one spouse ran up a large credit card balance, for example, the other spouse could request that the other spouse pay the debt out of his or her half.

Reviewing financial necessities may also be helpful leading up to divorce negotiations. Asking for specific assets or setting a figure for alimony may require knowing what future expenses involve.

Laws vary by state, so divorcing couples in New Jersey need to learn about the local rules and statutes. Assumptions regarding how the law works may lead to disappointment in court when the judge makes decisions on how the law is written.