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Avoid these property division mistakes in divorce

On Behalf of | Jun 1, 2022 | Divorce, Property Division

If you’ve decided to get a divorce, you know that you’ll have to make major decisions for yourself and your children. For instance, you’ll need to decide if you’re going to move to another home and take a detailed look at your debts to determine what you owe. In New Jersey, you’ll also need to know which assets should be awarded to you once the divorce is final. Here are some essential points concerning property division to keep in mind.

Staying in your home

You may be tempted to keep the marital home for several reasons, but you should make sure this makes the most sense for you financially. Consider whether you can afford to maintain the home and pay the mortgage living off one income instead of two.

Not changing your beneficiaries

Once your divorce is final, you should make changes to your beneficiary designations on your retirement accounts and life insurance policies. This will ensure that the people you prefer will benefit from the money in these accounts when you pass away. If you don’t want to make any updates, your ex will still be the beneficiary on these accounts.

Not understanding tax rules

When considering the value of your marital assets, you should think about both the value of your assets and the tax implications that come with ownership of the assets. You’ll be required to pay taxes when they are due on mutual funds, stocks, and ETFs or when you sell these products.

Be sure to review all investments you receive while your divorce settlement is pending. This will ensure that your future financial prospects are intact once your divorce is final.