What Are The Best Ways To Protect Your Money During The Divorce Process?

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The financial side of the divorce process can considerably impact your future financial stability, especially when considering marital assets, debts, and retirement accounts. In New Jersey, there are a number of actions that those filing for divorce in Brick, Toms River, Lakewood, or any Ocean County community can take to protect their finances during divorce, including carefully documenting separate property, ensuring accounts are untangled, and working with an experienced Ocean County divorce attorney. Read this blog to learn financial tips for your divorce, or contact an Ocean County Divorce Attorney today for individualized legal counseling.

How Can I Protect My Money During A Divorce In New Jersey?

One of the best ways of protecting your money during this process is figuring out exactly how much you have. There are generally two different types of property in a New Jersey divorce: separate property and marital property.

An attorney can help you take inventory of both your separate and shared assets. This will help you get a clearer view of your finances as a whole, which can make financial decision-making much simpler.

You’ll need to keep in mind that you’ll get all of your separate assets and debts post-divorce, but the marital assets will be split in accordance with New Jersey’s equitable distribution statute.

You and your spouse can decide on a settlement yourselves by hiring a mediator or other legal professional for help. Otherwise, the court splits assets and debts based on a large number of factors, such as the length of the marriage and each spouse’s income.

Financial Protection Steps During Divorce

Identify all marital and separate assets
Gather financial account statements
Review all accounts, including joint bank, retirement, and investment accounts
Refrain from unusual spending or transferring assets
Monitor all shared accounts

Why Is Identifying Marital and Separate Property Important in Ocean County?

Understanding the difference between marital and separate property is critical during a New Jersey divorce, as this directly impacts how assets are divided during the divorce.

Examples of Marital Property in New Jersey

Shared bank accounts
Marital homes
Retirement contributions earned during the marriage
Shared investments
Vehicles or personal property obtained during the marriage

Examples of Separate Property in New Jersey

Assets owned before the marriage
Certain inherited property
Gifts given to solely one spouse
Property protected by a valid prenuptial agreement

What Else Do I Need To Do?

If you were sharing a retirement plan (like a 401k) with your spouse, you’ll need to take action to ensure you still receive these payments even after the divorce has been finalized.

A qualified domestic relations order (QDRO) allows divorced spouses to continue to share the retirement plan when their marriage has ended. You won’t be able to receive payments from your spouse’s retirement account without a QDRO.

Why QDROs Are Important in Ocean County Divorces

Allows retirement accounts to be divided during a divorce without the normal tax penalties imposed by an early withdrawal
Preserves retirement benefits following a divorce
Commonly used for 401(k)s, pensions, and certain employer-sponsored retirement plans

Should You Separate Joint Bank Accounts During NJ Divorce Proceedings?

While it may seem like an easy way to prevent disputes and ensure financial stability during your divorce, separating joint bank accounts can be risky. Improper execution can result in concerns regarding hidden assets, fraud, and marital dissipation.

Important Financial Precautions During Divorce

Open an individual bank account for personal expenses
Carefully monitor activity on joint accounts
Keep copies of account statements
Refrain from making large, unexplained withdrawals
Ensure compliance with existing court orders

Why Is an Emergency Fund Important During a New Jersey Divorce?

Divorce can result in sudden and unexpected financial uncertainty, especially if one spouse primarily handles finances. Similarly, certain marital assets may become temporarily inaccessible, resulting in restricted access. As such, it’s in your best interest to establish an emergency fund to help preserve some financial stability during these times.

Financial Stability Tips During Divorce Proceedings

Create a personal emergency savings fund
Create a monthly budget
Monitor your credit report
Create independent access to important financial records
Plan ahead for temporary housing or child care costs

Contact an Experienced Ocean County Divorce Attorney Today

Are you considering filing for divorce in New Jersey? Are you seeking a dedicated divorce attorney who has your best interests in mind? Look no further because the Law Office of Sarina Gianna, LLC is on your side! Contact our highly experienced team today for an initial consultation.