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Money issues to consider when divorcing in New Jersey

A divorcing couple has many issues that it needs to resolve prior to the divorce becoming finalized. Additionally, each individual needs to take a look at their financial situation to ensure financial stability after it is finalized. For example, it may be necessary to evaluate an individual's cash flow immediately following a divorce.

Those who have enough money may want to receive assets in retirement accounts that can grow long-term whether they are in a taxed or retirement account. Otherwise, it may be worthwhile to ask for mutual funds, stocks or bonds that can be liquidated right away. Before the divorce is final, run a credit check to determine which joint liabilities have been settled and which may still be outstanding. Joint debts incurred before the marriage ends will continue to be joint debts unless the debt has been paid or the loan has been transferred into the name of a single person.

Assets from retirement accounts may be transferred tax-free if labeled a transfer incident to divorce. Assets in an employer sponsored plan may be transferred tax-free under a qualified domestic relations order. To get such an order, the court as well as the plan administrator must approve the transfer and have specific information provided before approval.

A divorce can be a challenging time for any couple. However, a family law attorney may be able to help an individual get through such a trying time as quickly as possible. An attorney may be able to review the facts in the case to help create a settlement that both sides can agree to. The settlement may also provide for the best interests of a child if the couple has children as a result of the marriage.

Source: Forbes, "6 Money Matters Divorcing Spouses Often Overlook", August 19, 2014

Source: Forbes, "6 Money Matters Divorcing Spouses Often Overlook", August 19, 2014

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