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How people can make financial preparations for divorce

People in New Jersey who are considering divorce can take a number of steps to prepare financially. The first is to get all financial documents together and put them somewhere safe. This could be with family, friends or in a safe deposit box.

People should also begin to think about their credit and establishing an individual line of credit if one does not already exist. They should order copies of their credit reports and take a look at any joint accounts in case they are being misused. People might want to set up their own individual bank accounts and apply for a personal credit card. For people who do not have their own incomes, it may be possible to obtain a credit card based on household income.

The tax situation may change for many people. In addition to no longer filing as married once the divorce is final, they might also be in a different tax bracket. There may be capital gains or other types of taxes to pay if some assets have been sold. People may want to consider that they may need other professionals besides an attorney to help them such as a financial planner. Finally, people should try to separate their emotions from the important financial decision-making they need to be able to do in the event of a divorce.

A high-asset divorce can make this process particularly complex. Couples may need to divide assets such as homes, vehicles, investments, valuable collections and even businesses. It may be necessary to sell some assets and split the proceeds. If one person made most or all of the income, the other spouse might be owed alimony for some time after the divorce is final. A person who is concerned that the other spouse is concealing assets might want to discuss this with an attorney.

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