The process of getting divorced is generally not an easy one, for both emotional and financial reasons. Even a relatively amicable divorce proceeding can take its toll on the parties involved. A couple of tips may help those navigating this type of family law proceeding in New Jersey.
First, keeping the house rather than liquid assets could be a major mistake during a divorce proceeding. After all, a house can be expensive to keep up as a single individual who has just gotten divorced. Liquid assets, such as those in a brokerage account or retirement account, may be a more solid bet. They clearly cost a lot less to maintain.
Second, for those who are heavily relying on their former spouses’ alimony or child support, the deaths of these former spouses can result in significant financially consequences to them and their children. For this reason, taking out life insurance on the former spouses may be beneficial. They can simply make themselves the policy owners and the beneficiaries. A life insurance policy can provide protection against the possible loss of income.
Making decisions about how certain assets should be handled can be overwhelming, especially since these decisions have far-reaching consequences. However, an attorney in New Jersey can help those going through divorce to pursue divorce settlements, through informal negotiation, that are ultimately in their best interests. If two spouses cannot come to an agreement about matters, such as asset distribution, through direct negotiations, they will have to go to trial and allow a judge to make the final determinations for them.
Source: CNBC, “When it comes to divorce, not all assets are equal“, Sarah O’Brien, Sept. 22, 2017