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Important to understand financial implications of later divorce

| Nov 13, 2019 | Divorce | 0 comments

Marriages are entered into with a promise of for better or worse. Many couples who have been married for a long time, raised families and had careers are questioning that promise as they consider their happiness in their golden years. The rate of divorce generally has decreased except for those over 50. The rate of the gray divorce is increasing in New Jersey and around the country.

Among the biggest issues facing any couple in a divorce, but especially those who are older, are financial issues. A person’s peak earning years may have passed if he or she is in her 60s. When figuring spousal support, this could be a significant issue. There are many other financial concerns that should be understood when beginning the process.

New Jersey is an equitable distribution state, which means financial assets are divided in a fair and equitable way, not necessarily a 50/50 split. A court or arbitrator may determine what is considered community property and therefore subject to the equitable split. Typically, assets or debts held by one party prior to the marriage are exempt, but gains made in those assets during the marriage may not be exempt. Inheritances may also be exempt.

It is important to have a thorough grasp of the financial situation when one embarks on divorce in New Jersey. Approaching it as a business transaction can help to keep some of the emotion out of the proceedings. A family law professional can help guide a person considering divorce with a thorough review of the financial assets and liabilities that may be subject to property division and the tax implications that may also be involved.