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Financial planning important following divorce

| May 12, 2020 | Divorce

The process of getting divorced in New Jersey can unfortunately deal a blow to an individual’s financial situation. This, in turn, can have a negative impact on his or her ability to retire. Fortunately, a couple of tips may help individuals who are going through divorce to protect themselves financially in the long run.

For starters, it is generally good for people who have gone through divorce to stock up on stocks. Stocks remain an essential part of many portfolios, even when a person is in retirement. Thus, it may behoove divorced parties to maintain portions of their savings in stocks, as this will help to counteract the effects of inflation. Their main goal should ideally be to keep growing their money while not necessarily risking it.

Second, it is wise for people to max out their 401(k) contributions if they can. This will improve their chances of reaching their financial goals related to retirement. In addition, they may want to constantly review their expenses to see how they can save more money. Likewise, it is best that they avoid carrying credit card balances to limit expensive interest payments.

Even though the financial aspect of the divorce process can be daunting, an attorney in New Jersey may help to make it easier to deal with. The attorney can provide the guidance needed to make educated decisions about asset distribution and alimony, for instance. The attorney will help his or her client to pursue a comprehensive and fair settlement with the other party while still keeping the client’s best interests at the center of the divorce proceeding.