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Avoid these mistakes when dividing assets during a divorce

On Behalf of | Jun 17, 2022 | Divorce, Property Division

While you’re going through a divorce, you and your New Jersey spouse will have to focus on many things. Division of assets is only one of them, and it is important to avoid making common mistakes in this regard.

Not considering your health insurance options

If you receive health insurance from your spouse’s plan through their job, that will stop after your divorce is final. Not considering your options is a mistake that can cost you even if you don’t run into a medical emergency. You should look into health insurance through your employer or the exchange.

Keeping the marital home

It’s not always the best financial move to keep the marital home in a divorce. If you’re unable to continue paying the mortgage on your own or pay for maintenance, it’s impractical. You don’t want to be out more money than the house is worth, so it might be better to sell and split the proceeds with your spouse as part of the divorce settlement.

Not considering that there might be hidden assets

If your spouse is less than honest, it’s possible that they have some assets hidden. Some people give assets to family members or friends or place them in overseas accounts. It’s important to consider the possibility that this issue might relate to your situation. You might want to look into it to cover yourself so that you don’t get cheated.

Not updating your beneficiary designations

One of the biggest mistakes you can make while going through a divorce is to neglect to update your beneficiary designations. It can result in your spouse receiving assets from your retirement account, life insurance and other accounts upon your death. In most cases, after your divorce, you won’t want your former spouse to be your beneficiary. Make sure you update all your important documents.

Being extra cautious during your divorce can help you avoid making costly financial mistakes.