We are working remotely during these trying times to make sure we can still support you in all your legal matters.
Please know you can call us or schedule online appointments for any of your legal matters. Be well and stay safe.
Deitch & Perone, P.C. | Attorneys At Law
Monmouth & Ocean County Area
Union & Middlesex County Area

Tips for avoiding expensive divorce mistakes

People in New Jersey who are going through a divorce might make some financial mistakes that can cause the process to be even more stressful. Awareness of common mistakes can help people avoid them.

For example, some people might go out and buy a big-ticket item during or after the divorce. This feels good in the moment, but the bills will come in. Some financial planning may help a person make better decisions during and after the divorce, and a professional could help with this. This planning may help people avoid mistakes such as keeping a home they cannot afford or quitting work to avoid alimony payments.

Another common mistake by people who are not keeping a close eye on their finances is liquidating assets to pay for the divorce or other debts. The problem with this strategy is that it can end up being costly if taxes are involved in selling assets or taking distributions. Some couples may have a 401(k) to split. They will need a document known as a qualified domestic relations order, and the distribution will need to be rolled into an IRA to avoid penalties and taxes.

Couples should be aware that starting with divorces finalized in 2019, it will no longer be possible to deduct alimony payments from taxes. Payments will not be taxable either.

Some couples prefer a collaborative divorce to going through litigation and battling over property division and child custody. While negotiation requires the cooperation of both people and is not always possible, couples may find that it costs less and that they are more satisfied with the outcome than one decided by a judge. A collaborative divorce may help ensure that both people are financially stable after the divorce and that a custody decision is reached that suits both parents and their children.

No Comments

Leave a comment
Comment Information

Learn How We Can Help

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Us For A Response

Our Office Locations

Deitch & Perone, P.c.
265 Highway 36
Suite 203
West Long Branch, NJ 07764

Phone: 732-440-9887
West Long Branch Law Office Map

Scotch Plains Office
1812 Front Street
Scotch Plains, NJ 07076

Phone: 732-440-9887
Map & Directions