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Financial preparation before divorce is critical

| Jun 8, 2022 | Divorce

The end of a marriage will bring financial changes to both New Jersey spouses, even if one or both are high-income earners with sufficient assets. If you are considering divorce, you may have concerns about how this process will impact your current status and your long-term stability. While property division will impact your finances, there are steps you can take now that will lay the foundation for your security in the future.

Preparing for your divorce before you move forward with the process is a prudent step for individuals of all income levels. A divorce is emotionally challenging, and financial difficulties can exacerbate the strain you will certainly feel during this time. Organization, preparation and maintaining a goal of shielding your long-term interests can give you a higher chance of success long-term.

Practical steps you can take now

Divorce is costly, and you would be wise to enter the process with the goal of minimizing as much collateral damage as possible. The financial aspects of extricating two financial lives are complex, and the first step to reducing complications is organization. Regardless of the type of divorce you plan to pursue, whether it’s mediation, litigation, collaboration or another route, the following steps can help you prepare for what’s ahead:

  • Create a budget for what you expect with your post-divorce finances, and begin adjusting your lifestyle to this projected budget.
  • Make a list of all of your assets and liabilities, and have an estimated value for the most valuable property.
  • Close joint accounts and credit cards, and establish accounts that are solely in your name.
  • Keep track of your spending, and avoid making any major financial decisions at the moment.
  • Gather and organize all financial documentation that you may need at any point during the divorce process.

Financial preparation can ease the strain and complexity often associated with the process of separating finances during a divorce.

Seeking a strong future

The decisions you make during divorce will have a significant impact on your future. If you are planning to take this step in the future, preparation now can help you lay the foundation for long-term security. As you consider your divorce and prepare for what is ahead, you may benefit from seeking guidance regarding the most effective way to protect your interests and ensure that you have financial stability long after your divorce is final.