One financial mistake divorcing couples in New Jersey should take steps to avoid is fighting to maintain ownership of the family home despite the financial burden it may represent. There are many costs associated with homeownership, which can put a financial strain on the persons who own the home after the divorce, particularly if those persons have to deal with those costs with an income that is significantly lower than what they had before.
Before making a final decision about the family home, divorcing couples should consider all of their options. If they have owned the home for several years, it may be wise for one party to retain ownership of the home, particularly if it has a low tax base.
Some people who are required to pay alimony may stop working in order to avoid fulfilling their obligation. However, this will result in owing more money due to having to pay more attorney fees from having to address the issue in court.
Another financial mistake to avoid is not taking the time to develop a financial plan for during and after a divorce. Not having a financial plan can make individuals more prone to behaving irrationally regarding their finances, especially during the emotional and complicated time during a divorce. The impact of the financial mistakes that they make during this time may be felt well into the future. To prevent this, they should consult with a fiduciary financial planner who will be able to help them navigate the complicated financial issues that are commonly part of the divorce process.
A family law attorney may consider the goals of a divorcing client and may litigate to obtain favorable divorce settlement terms regarding spousal support and the division of financial assets. Negotiation may be used to resolve disputes regarding other financial issues related to divorce.