Financial Questions in a Hackensack Divorce

There are an overwhelming number of questions that invariably arise whenever a couple gets a divorce, and many of them, naturally, are related to finances— especially when two people have comingled their finances for the sake of their family and are now separating.

While you’ll need an experienced and qualified O’Cathain Law Department Family Lawyer to help you navigate all the Financial Questions in a Hackensack Divorce, let’s look at the following financial questions right now:

• What will happen to our primary residence, and the mortgage itself? While every case is different, there are a few options regarding the primary residence, one being that one spouse buys the other spouse out of their half of the equity in the house and assumes responsibility for the remaining mortgage. Another option is that the primary residence is sold, and the proceeds are split between the two parties. Whether one spouse will be able to financially afford to keep the primary residence will depend upon a variety of financial factors.

• What will happen to our vacation home? If a vacation home has been part of one spouse’s family of origin for some time and is protected in a prenuptial agreement, then the second home may not be subject to equitable distribution, or at least a portion of its value will be. If not, the vacation home could be treated like the primary residence for the sake of financial consideration, which includes being sold.

• What about our credit card debt? If the credit card debt has been accrued during the marriage, the debt itself will most likely be split as well.

• How about a premarital asset? If each party has certain special keepsakes that they brought to the marriage from their life prior to being wed, those premarital assets may be assigned by the court to stay with the party who originally had them. Talk to your family lawyer about any specific items you brought to the marriage and want, or any specific items brought jointly that you would like to have.

• What about our marital assets? If bank accounts, stock portfolios and options, etc., was built during the marriage, these assets will most likely be split evenly as ordered by the court.

• What about college funds for our children? If you’ve put money away to pay for future college costs, you may want to speak with your family lawyer about those funds being kept for the designated child and not subjected to equitable distribution.

• What about taxes moving forward? While a family lawyer is not a tax lawyer, we do work with excellent tax lawyers, wealth management financial planners, forensic accounts and others who will comprise your financial team.

• What if I own my own business? We have a whole webpage on the question of protecting your professional practice, and, as noted above, we work with a forensic business accountant. Depending upon the nature of the business and its financial considerations, it will most likely be subjected to equitable distribution.

• How about assets for retirement? Some retirement assets are subjected to equitable distribution, but some are not, especially if they were earned prior to the marriage. You’ll want to make an appointment with your family lawyer about a Qualified Domestic Relations Order (QDRO), about transferring assets to an Individual Retirement Account, or about an alternative retirement plan.