Deciding to divorce your spouse is never an easy decision, as there are many considerations that influence the choice. From coming to terms with the state of the relationship to the impact it will have on your children, this is a very difficult time for many. Unfortunately, it is often unavoidable. If you are getting a divorce, ensuring you avoid the most common financial mistakes is crucial to protecting yourself during the dissolution of your marriage. Keep reading to learn more and discover how a Bergen County, New Jersey high net worth divorce lawyer can represent your best interest during your separation.
What Are the Most Common Financial Mistakes During the Divorce Process?
Because high net-worth divorce cases can be more complex than others, taking the time to understand how to avoid the most common mistakes is crucial to protecting your assets.
One of the most common mistakes people make when getting divorced is failing to understand the liquidity of their assets. Liquid assets refer to how quickly something can be turned into cash. For example, if you got the car and your spouse received stocks, they would have a much easier time selling their stocks for cash. To sell the car, you’d have to wait to find a buyer willing to purchase it for the asking price. This means you’ll want to try to ensure you don’t just take all of the tangible items but receive accounts that can translate to cash during your divorce.
Similarly, you’ll want to understand that New Jersey is not a community property state. This means the property and assets you and your spouse obtain during your marriage are not split evenly. Many make the mistake of assuming that all property will be split evenly between spouses. However, New Jersey operates on equitable distribution, which means the property you gain during your marriage will be distributed based on each spouse’s contribution to the union.
You should also familiarize yourself with your finances. Unfortunately, if your spouse handles the bills and accounts, they may have a deeper understanding of your assets. When you decide to divorce, take the time to review your finances and accounts. This also gives you the opportunity to look for discrepancies that indicate your spouse could be hiding assets from you.
When Do I Need to Talk to an Attorney?
If you are served papers or decide to divorce your spouse, reaching out to an attorney as soon as possible is crucial. The longer you wait to speak with a lawyer, the more susceptible to financial mistakes you are.
At HD Family Law, we understand how difficult divorce can be on your emotional state. We can help you navigate the financial aspect of your divorce, especially when high-stakes assets are involved. Reach out to our firm today to connect with a competent attorney to learn how we can help you transition into the next chapter of your life.