People in New Jersey who are getting divorced or who are contemplating a divorce may understandably worry about their financial futures. The process of splitting a marital estate can leave both spouses with less money for retirement as well as less money on which to live every month, even though New Jersey is not a community property state.
According to a recent report by CNBC, it seems that many married couples today are opting to keep their individual earnings separate rather than comingling everything into a joint pool of assets. This is happening in part as an attempt to prevent asset loss in the event of an unforeseen divorce. This approach appears to be especially popular among millennials. However, separate bank accounts may not be able to protect every dollar in them.
In marriages that have lasted for long durations, it can be difficult to truly prove that the income of each spouse did not in some way contribute to the marriage or the family. It is also important to remember that equitable and equal are not synonymous, meaning that an equitable distribution divorce settlement does not require each spouse receives the exact same value of assets.
A prenuptial agreement is the best way to protect one’s assets from loss in a divorce. It can also be wise to keep copies of financial account statements from before the date of a marriage. A separate account can end up helping a spouse if their partner eventually locks them out of a joint account.