Divorcing is not always easy, but it does give you a chance to take a good, hard look at your life and make any changes you deem necessary. For many New Jersey residents who were once married, learning to get by on one income, as opposed to two, takes some adjustment. You may find that you have a better chance at positioning yourself well financially following your divorce if you avoid common money mistakes divorcing individuals often make.
What are three money mistakes to avoid during your New Jersey divorce?
Mistake One: Maintaining the same lifestyle you did prior
The more you learn to accept the fact that your financial big picture may look different after your split, the better off you may be. Part of this acceptance involves recognizing the areas where you may need to pinch pennies or modify your lifestyle, at least for the time being.
Mistake Two: Banking on alimony
New Jersey no longer recognizes permanent alimony. In some cases, you may be able to secure something called open duration alimony, which, as the name implies, does not specify exactly how long you stand to receive alimony payments. However, your marriage must have lasted at least 20 years for you to potentially qualify for it.
Mistake Three: Staying in a too-expensive home
Sometimes, one party in a divorce wants to keep the once-shared home because he or she has an emotional attachment to it. In others, one party may want to “win” the home in the divorce. Be wary of fighting to stay in a home you may not be able to afford on one income.
While there are numerous money mistakes you may make during a divorce, these are three that may have lasting implications.