Divorce proceedings reflect a legal process that involves many responsibilities. Divorcing spouses will often find it necessary to pay close attention to financial matters before dissolving the marriage. Sometimes, financial issues may be complicated, and both parties might make discoveries about each other’s finances that change the way they look at settlement offers. New Jersey couples might find taking a deliberate approach to avoid costly financial mistakes worth the effort.
Dealing with finances during a divorce
Although both spouses may believe that each one knows about the other’s monetary dealings, certain facts might not come out until divorce proceedings. What if one spouse owes debts in both names? Perhaps both spouses legitimately agreed to open a joint line of credit years earlier, and one spouse ran up a significant amount of debt without the other knowing. Legally, both may be responsible for the repayment. The spouse who borrowed the money may agree to pay back the entire amount as part of the divorce settlement.
Then there are issues related to taxes. One spouse might have earned far more than he or she revealed to the other. Now, both owe taxes on past joint returns. As with other debts, both spouses could address who pays the back taxes during the settlement talks.
Performing an audit of all financial accounts and obligations might be extremely helpful. Those unsure of how to go about the audit could ask their attorneys for assistance.
Other matters related to divorce and finance
It may be best to close joint accounts during the divorce process and cease the commingling of finances. After the divorce, both ex-spouses go on their separate ways, so why not move faster with separating financial accounts now?
Insurance coverage is worth looking closer at when readying for a divorce. Newly single persons may need to purchase health, auto, renter’s, and other insurance policies. Perhaps the premium costs might factor into alimony requests.
Planning a post-marriage budget seems advisable as well. Even with maintenance and a decent salary, it would be hard to live beyond one’s means. Carefully weighing life’s expenses and planning a careful budget may make things easier.