When New Jersey couples dissolve their marriage, they expose themselves to several issues. Both parties face emotional and mental stressors during and after the divorce. However, there are several financial issues commonly experienced by divorcees.
Splitting existing assets
Currently, only nine states in the US have “community property” laws and New Jersey is not one of them. That means that any assets you and your ex own are subject to division by the court. In high asset divorce, this process of splitting assets can leave one or both parties in a vastly different financial situation than the one they grew accustomed to during their marriage.
Closing joint bank accounts
Many married couples share checking and savings accounts during their marriage. After a divorce, you probably don’t want to keep your finances intertwined with your ex, so you must close these accounts. The timing of account closure depends on several factors, including what you’re going to do with your marital home.
Dividing debt
Since New Jersey is not a community property state, all debts incurred during the marriage aren’t automatically split evenly between both parties. In most cases, the person whose name is on the accounts becomes responsible for the debt. However, you and your ex could devise a plan to pay off these debts together.
Retirement implications
Divorcees must rethink their retirement plans. For instance, if your retirement age is 65 and you get divorced at 60, you may have to change your retirement plans. In most cases, retirement accounts get divided between both parties, but that’s not always the case.
There is no denying that divorce can change your financial future. Understanding the implications from the beginning allows you to create a plan that works for you and your future.