Arons & Solomon Divorce Lawyers | June 8, 2023 | Family Law
Money is a common reason why spouses argue. A recession can cause additional financial struggles that highlight problems in a relationship. The result can be an increase in legal separations and divorces during a recession.
However, some couples might stay together during a recession because of financial strains. They may set aside other issues because they need each other for financial support. Couples might believe they cannot afford a divorce during a recession.
Each couple’s situation is different. Therefore, a recession impacts divorce and family law matters differently based on the couple’s circumstances.
How Does a Recession Impact Support Payments in New Jersey?
Whether a recession is a benefit or disadvantage during a divorce depends on which side you are on. An economic downturn could result in unemployment or a decrease in income.
Therefore, if you are ordered to pay alimony or child support, a recession could result in a lower payment. On the other hand, the payee may struggle more with their finances because of a lower support payment. Furthermore, the payee must petition the court for a modification order if the payor’s income increases after the recession.
The recession could also result in a modification decreasing support payments. A payor might petition the court to reduce child support or alimony payments if they lose their job. The result can cause negative repercussions for the payee.
Children can suffer during a divorce because of lower support payments. Divorced parents do not have the combined resources to maintain the standard of living during the divorce. With lower support payments, a parent might need to cut out extra-curricular activities and other unnecessary expenses.
How Does a Recession Impact Property Division in New Jersey?
Unfortunately, assets may be worth less during a recession, which can impact property division. For example, housing values decrease. In addition, financial markets can cause retirement accounts to lose value.
A recession can be beneficial for a spouse who wants to buy out their ex’s interest in the marital home. As a result, they can own the home for less. However, they need to consider higher interest rates for mortgages if they need to refinance a mortgage or get a second mortgage.
Personal property and businesses might also lose value during a recession. Therefore, spouses might not have the resources they thought they would have if they divorced. Some spouses might need a second job to make ends meet after separation and divorce.
Should I Wait To Petition for a Divorce Until After a Recession Ends?
Sometimes divorce is inevitable. There may be no choice but to proceed with a divorce during a recession. For example, domestic abuse cannot be pushed aside until the recession ends.
If a divorce is inevitable, you need to protect your rights. Therefore, seek legal advice from a Bergen County divorce lawyer immediately.
An experienced divorce attorney reviews all aspects of your situation to determine the best strategy to achieve your desired outcome. With your attorney’s help, you can maximize the benefits of divorcing during a recession while minimizing the negative aspects of the economy on your divorce.
Preparing for a Divorce – Steps To Protect Your Best Interests
Regardless of when you file for divorce, take steps to protect your best interests. Things you can do include:
- Copy all important documents, including deeds, titles, mortgages, tax returns, financial statements, and others.
- Move your personal documents to a safe location, including your birth certificate, Social Security card, diplomas, personal mementos, photographs, and more.
- Consider your living arrangement in case you need to leave the marital home. You need a backup plan so that you are not overwhelmed.
- Secure separate property so your spouse cannot sell or destroy property that belongs only to you. Give your attorney a list of separate property that needs to be protected during the divorce.
- Discuss canceling or closing credit cards you added your spouse to as a co-signer or authorized user. This may prevent your spouse from incurring debt you could be liable to pay.
- Ask your lawyer if you need to open a bank account in your name only for your earnings.
- Meet with your estate planning lawyer to discuss changing your Will, Medical Power of Attorney, and other estate planning documents.
- Create an inventory of your marital assets and debts, including the values and balances for each item.
- Do not sign any documents without consulting a divorce lawyer.
Your situation is unique. Therefore, talking with a Bergen County divorce attorney early in the process is the best way to protect yourself and your children during a divorce.
Contact the Bergen County Family and Divorce Law Firm of Arons & Solomon Divorce Lawyers for more help
Contact the experienced family attorneys at Arons & Solomon Divorce Lawyers today for legal assistance. Visit our law office in Bergen County or give us a call at (201) 487-1199 to schedule a free consultation with our team.