When a couple splits, every decision regarding the split will affect future finances, in both the short term and the long term. While everyone wants a fair settlement, confusion over what to do about the division of finances and property in a high-asset divorce can lead to decisions that may be regrettable. The decision concerning what kind of settlement to accept and which assets to pursue or avoid can play a large role in how a New Jersey divorce plays out in the long run.
A home can be a major source of contention in a high-asset divorce settlement. In many cases, there are emotional attachments, which can cause spouses to want to keep their marital homes. However, a house can be a major financial drain when a spouse fails to consider the cost of refinancing or the difficulty of making payments with only one income.
Aside from the house, finances can be impacted as child custody agreements are outlined. Beyond the realm of child support, there are tax implications to custody and support. Only one parent can use the child exemption tax credit each year. In fact, the time a child spends in each house can even determine how taxes are filed. Alimony payments will also impact taxes, and anyone accepting or paying alimony needs to understand exactly what the impacts of any decisions will be.
Finances in a high-asset divorce in New Jersey involve so much more than the splitting of a joint bank account. The division of property and the tax implications of decisions can affect the quality of both spouses' lives after a divorce, while also affecting the financial stability of both parties. Often, the services of skilled attorneys and financial professionals can help all involved fully understand the implications of decisions concerning assets and property.
Source: USA Today, "5 biggest divorce mistakes financially", Wendy Spencer, March 7, 2015