Divorce in New Jersey is a challenging time for many reasons, and one of the biggest hurdles is getting your finances in order. Managing your assets incorrectly can cost you a large amount in the divorce, and if you attempt to illegally hide assets, it can also irritate the judge, incurring penalties. It’s important to follow the best practices to protect your assets without crossing any red lines.
Know all your assets and debts
The most important thing to have in a divorce is knowledge. There are a lot of little things that can slip through the cracks and suddenly become important during a divorce, like old retirement accounts and small bank accounts. Make sure you have a careful record of all assets and holdings as well as all debts, when the debts were incurred and whose name they are in.
Keep track of costs
Make sure you have some money to cover the costs of the divorce itself, which can be substantial, as well as funds for things like security deposits on new housing, moving expenses and other costs that you aren’t used to paying. Make a financial plan for things like commuting, health insurance, child care and any other costs that used to be split as part of the household finances. You need to consider taxes on existing assets as well as the tax treatment of alimony payments.
There’s a lot to keep track of during a divorce, and it’s important to stay focused and in control when it comes to finances. Knowing all of your assets and debts and managing the costs of the divorce itself are keys to a successful and smooth process.
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