FAMILY LAW... & MORE

Financial security in the midst of divorce

| Apr 1, 2020 | Divorce |

These days marriage doesn’t always mean “til death do us part.” Since the stigma attached to divorce has all but been erased, more couples who have been in unhappy marriages for years are deciding to go their separate ways and suddenly people in their 50s and older are finding themselves single again. New Jersey residents in this situation should have a handle on how they can minimize the impact divorce has on their finances.

The first step, experts suggest, should be recalculating finances. Doing a post-divorce budget is crucial so it can give each person a snapshot of financial needs of the future. A couple who is divorcing not only has to split assets, but debts as well. Once major issues have been ironed out like child custody, other things need to be seen to such as updating a will, changing passwords to online accounts, opening an independent bank account, stopping joint credit cards and closing joint bank accounts. 

Divorce is particularly difficult for those who are older, not only financially, but in other ways — it’s likely new powers of attorney need to be chosen as well as updated health care directives since a soon-to-be former spouse will likely not be making decisions for his or her former spouse. There should always be a plan in place for unforeseeable events such as job loss. A lawyer may be able to help a client with ways to do that.

Having a plan in place prior to divorce may save much financial stress in the long run. A New Jersey attorney may be able to help a client who is looking at how the divorce process may affect his or her long-term financial goals. The lawyer can then take a client’s personal situation into consideration during settlement talks.