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Understanding finances during divorce

Some people in New Jersey who are divorcing may have never dealt with the family finances or may not know much about them. Even financially savvy people might benefit from the assistance of a financial planner at such a time. A financial planner may be able to address and assist with a number of unique situations that may arise during the proceedings.

For example, divorcing spouses who want the family home may be taking on a bigger burden than they realize. They might agree to let one spouse take retirement accounts or other investments in exchange for the house without factoring in the cost of things like maintenance and insurance. Meanwhile, the other accounts might appreciate rapidly in comparison to the home.

A deceptive spouse may even have reduced the value of some assets. For example, one woman did not know her husband had taken out a home equity loan. After the divorce, she found herself owing twice as much on the house as she expected. In more extreme cases, some spouses may attempt to hide assets. However, a financial planner might be able to uncover actions such as these.

People who understand their finances and how their situation will change after divorce are better positioned to plan a strategy for the division of assets. A less contentious way to approach this might be with negotiation outside of the court. In some cases, even couples who are in conflict might be able to reach a satisfactory solution. However, if one spouse is hiding assets or otherwise attempting to obstruct the proceedings, it might be necessary to have a judge decide. An attorney may be helpful with either negotiation or litigation.

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