Divorce is typically an unpleasant subject. It is even more unpleasant to experience firsthand. Although divorce doesn’t have to be strongly contested and overly combative, unfortunately it often gets that way. One of the biggest problems facing those who are going through divorce is their financial future. Anyone in the Morris County area considering divorce should also consider some important steps to take in order to protect him or herself from marital debt.
One of the first steps people should take is to determine how their property division will work. New Jersey is an equitable distribution state, which means any property acquired during the marriage is considered marital property and will be divided accordingly. Another smart move to make during the divorce process, according to MoneyCrashers.com, is to open a separate bank account. Establishing separate credit accounts is also a good idea.
Another way to protect one’s income during the divorce process is to establish separation. Once an actual separation date is recorded then any funds and assets one acquires after that date will be considered solely his or hers. It’s also important to play nice, which means not doing anything that could damage your image.
Meantime, if a couple has joint debt, it’s in their best interest to end the marriage with all joint debt paid off. One step couples can take, if both are willing, is to divide the debt and agree to pay it off. They can then transfer each of their individual portions to newly created separate accounts. According to CreditCards.com, entering single life after divorce with shared debt still in tow can cause significant financial problems for either or both parties.