Considerations When Filing for Divorce In a Struggling Economy
Much has been made about the economy’s impact on divorce in New Jersey and elsewhere. At the depths of the Great Recession, a lower divorce rate was blamed on the economic downturn as couples stuck together out of necessity (or so the argument went). Then the divorce rate rebounded with the economy.
In the current period of economic uncertainty, many couples who would otherwise not hesitate to divorce are waffling, because they are uncertain about the economic ramifications. Whether you believe the statistics — or the prognosticators — the fact remains that divorce is a major life event on both the personal and financial fronts. The attorneys at Salvaggio Law Group LLC understand the challenges which are inherent in a divorce and can assist clients in preparing for the transition while avoiding some of the most common pitfalls.
The truth of the matter is that poorly executed divorces are a leading destroyer of wealth. Recently,MSNBC recently posted five situations in which when special care should be taken to protect your finances during divorce. In each of those situations, it is essential that you have the guidance of a top notch New Jersey divorce law firm.
-Shaky Housing Market: When the market was hot, houses were selling quickly and for top dollar, and the biggest decision that New Jersey divorcing couples needed to make was how to divide all of the sales proceeds. Now that the real estate market is struggling and many marital residences have little or no equity, it has created tremendous challenges which did not previously exist. A situation which is often overlooked is when one party in a New Jersey divorce has credit score which is much lower than the other party. If that is the case, it may be advantageous for the party with the lower score to negotiate to keep the house so that he or she is not faced with trying to obtain credit in the near future.
-Questionable Economy: Changing jobs, buying cars, buying houses or renting apartments can all be required as a result of divorce. Those big financial decisions, which have been made more complicated and often more difficult as a result of the bad economy, should not be made without the guidance of an experienced New Jersey divorce law firm.
-Damage to Credit Score: A divorce can make a poor credit score even worse. Job interviews and renting an apartment can be made more difficult. Buying a home or car can be impossible. An experienced New Jersey divorce lawyer can help you navigate these difficulties.
-Young Children: Having children who are under 18 years of age always complicates a divorce. It is always beneficial to retain an experienced New Jersey family law firm, because even when the divorce is amicable, issues involving children frequently arise as the months and years go by. Who pays for braces, unexpected medical care and college? What if one parent gets a job offer and wants to move away? A good New Jersey divorce law firm can alert each party of those issues and make sure that they are covered in the Settlement Agreement, thereby saving a lot of headaches down the road.
-Your Inheritance: The implications of one party inheriting money before, during or after a divorce can be extremely significant, both with respect to property distribution and support. Those implications are best explained by a New Jersey divorce lawyer who deals with those issues on an everyday basis.
The decision to divorce is a personal matter and, in theory, should have nothing to do with the state of the economy. In the real world, however, getting sound legal advice is the most critical aspect of preserving wealth and your standard-of-living post divorce.
If you would like to set up a personal and confidential appointment, call us at (973) 455-1220 or fill out the Contact Form on our website.