How Can I Protect Myself Financially in a New Jersey Divorce?

Divorce isn’t easy, and it’s far more than an emotional process–it’s also a financial one. For this reason, many people who are facing a divorce will often wonder what their finances will look like after the fact, particularly if they don’t already have a prenuptial or postnuptial agreement in place. Please continue reading and reach out to a knowledgeable and experienced divorce lawyer in Sussex County, New Jersey, here at Gruber, Colabella, Thompson, Hiben & Montella to learn more about how to best protect yourself financially from a divorce. Here are some of the questions you may have:

What Financial Documents Should I Gather Before Filing for Divorce?

First, gather documents that provide an accurate picture of your personal and marital finances. This is especially important if your spouse traditionally handled the household accounts. Some of the most important documents you may need include the following:

• Recent bank, brokerage, and credit card statements
• Federal and state income tax returns
• Pay stubs and other proof of income
• Mortgage statements, property deeds, and appraisals
• Retirement, pension, and investment account statements
• Insurance policies and business ownership records
• Loan documents and information regarding other debts
• Any valid prenuptial or postnuptial agreement

Keep copies of these documents in a secure place. It may also help to list every known asset, its approximate value, whose name appears on the account or title, and whether it was obtained before or during your marriage.

What Steps Can I Take to Protect My Money and Credit?

Protecting your finances does not mean that you should hide assets, drain a joint account, transfer money without explanation, or make large purchases before filing. These actions may harm your credibility before the court. Instead, focus on lawful steps that help you monitor your finances. Depending on the circumstances of your divorce, you should consider doing the following:

• Requesting copies of your credit reports and checking them for unfamiliar accounts
• Opening an individual bank account for future income
• Changing passwords for accounts that belong solely to you
• Tracking your weekly and monthly household spending
• Monitoring joint accounts for unusual transfers, withdrawals, or purchases
• Speaking with an attorney before closing, freezing, or withdrawing from a joint account

New Jersey is an equitable distribution state, meaning marital property is divided according to what the court considers fair. This does not necessarily mean that all property will be divided equally. The court may consider the length of the marriage, each spouse’s income and earning ability, their contributions, existing debts, tax consequences, and other relevant factors.

How Can I Prepare for My Financial Life After Divorce?

Before agreeing to a settlement, consider whether its terms will be manageable once you are supporting a separate household. An offer may appear fair on paper while still being difficult to live with.

Create a realistic post-divorce budget that accounts for housing, food, utilities, transportation, insurance, childcare, taxes, debts, and retirement contributions. Also consider whether you can afford to keep the marital home after factoring in the mortgage, property taxes, repairs, and maintenance.

Retirement accounts and pensions must be handled carefully because dividing them may require specific language or an additional court order. Selling, transferring, or keeping certain assets can also have tax consequences.

Finally, review your estate plan, beneficiary designations, insurance coverage, and emergency savings with your attorney. Some changes can be made while the divorce is pending, while others may need to wait.

If you have any additional questions about how to best protect your finances in a divorce, please don’t hesitate to contact Gruber, Colabella, Thompson, Hiben & Montella for an initial consultation today.