Divorce in New Jersey continues to be one of the top causes of bankruptcy, and divorce is often caused by financial problems. But sometimes the financial problems are caused by the divorce, which then leads to bankruptcy! That is because the couple makes one or more of the following mistakes.
- Dragging Out the Divorce. Everyone knows that lawyers are expensive, and that in a divorce, they charge by the hour. So why do so many couples prolong the battle and thus run up the bill? “Matters of principal” are expensive!
- Losing Sight of the Financial Independence Goal Post-Divorce. People filing bankruptcy tend to be focused on wiping out their debt backlog for a fresh start. Although this is a central purpose to bankruptcy, that fresh start won’t last very long if you do not have a positive cash flow going forward.
- Not Balancing the Liquid Assets in Equitable Distribution. Couples often fight over who gets the house or the larger share of the family business, both of which are non-liquid assets that would have to be sold to get any ready cash necessary for financial stability.
Naturally, the best course of action is not to make these mistakes in the first place. Release the emotions, work out a fair and amicable settlement early on, and balance the liquid assets in the divorce properly. This will increase your chances of financial stability down the road. Get more info here!
If you live in southern New Jersey and are considering bankruptcy please feel free to call me at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.
If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey. You can also learn more about bankruptcy as it relates to divorce by downloading Top Questions Divorcing Couples Ask About New Jersey Bankruptcy.