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Examining finances a good idea when starting divorce process

On Behalf of | Jul 26, 2019 | Divorce

No matter what the income levels of the spouses may be, getting divorced can quickly take a toll on them financially. This is why it is generally a good idea for spouses to thoroughly study their financial situations before commencing with divorce proceedings in New Jersey. Specifically, it is wise for them to do some reconnaissance regarding their incomes and debt, as well as their expenses.

When trying to determine how much money they bring in, wages, bonuses and any cash generated through various partnerships should be considered. Recent tax returns should give an idea income streams of the parties. In the same manner, credit reports can be helpful for uncovering outstanding debt, which will need to be addressed in the divorce proceeding. This may include credit card, student loan and car loan debt, as well as mortgages.

To figure out expenses, a review of current budgets can determine how much is spent on various items each month. It might be beneficial to create a separate list of expenses related specifically to the children as well, as this may prove helpful during child custody and child support discussions. These might include the cost of tutoring, college tuition or medical insurance, for example.

The best-case scenario during divorce is for both spouses to be on the same page regarding the division of assets and debt, as well as dealing with child custody, child support and/or alimony. They can choose to address these matters at the negotiation table or through mediation instead of going to court. A New Jersey attorney can help pursue a comprehensive and fair settlement that will meet the client’s needs long after the divorce has been finalized.