Anytime a couple splits, even under the most amicable situations, there are changes that come about. One area that is bound to change, especially where a high-asset divorce is concerned, is the financial outlook of the parties involved. Any New Jersey couple going through a high-asset divorce may want to consider the financial ramifications and how to protect themselves as they adjust after a divorce.
Statistically, women still earn less than men. It is estimated that after a divorce, a woman’s income may drop by 37 percent. This can greatly impact the quality of life for the female in the marriage. One way to prepare for this possible drop is to have an emergency fund on hand. This will help either party avoid using long-term investment money when an emergency occurs.
Another tip for both parties, especially the party that may be living on less after the divorce, is to reevaluate investments and retirement accounts. Meeting with experts in the field of finance can be beneficial, especially for the spouse who never really handled investments. Retirement will look different and may require different plans after a divorce.
During the divorce process, there are many decisions that need to be made by all involved. If a high-asset divorce means shaky financial ground for one partner, that partner may benefit from being prepared in every way possible. In New Jersey, both parties must fully disclose assets. They can try to negotiate ways to handle joint accounts and agree on how to move forward with those accounts, particularly retirement accounts, in a manner that is fair to both parties.
Source: shreveporttimes.com, “Financial tips for newly single women“, Oct. 14, 2014