How To Prepare for Financial Negotiations in a New Jersey Divorce  

A New Jersey divorce has the potential for being an emotionally and financially complex undertaking. Dealing with dividing assets and debts by part of a marriage dissolution proceeding can prove to be particularly challenging. Understanding this reality, it is important for you to understand how to prepare for financial negotiations in a New Jersey divorce.

Equitable distribution laws govern financial settlements and the division of assets and debts in a New Jersey divorce. Proper preparation is key to protecting your financial future. Further, as noted a moment ago, at the heart of this process is getting ready for financial negotiations in a New Jersey divorce.

Understand New Jersey’s Divorce Laws

We noted a moment ago that the state of New Jersey follows the equitable distribution standard when it comes to dealing with assets and debts. In basic terms, what this means is that marital assets and debts are divided in a manner that is deemed just and fair when considering the facts and circumstances of a particular case.

Equitable does not necessarily mean equal. A court considers a number of different factors when it comes to the distribution of assets and debts in a Garden State marriage dissolution proceeding. In preparing for divorce negotiations in a New Jersey divorce, you need to be aware that factors considered in the division of assets and debts typically include, but are not limited to:

• Marriage duration
• Income disparities
• Each spouse’s unique contributions made during the course of a marriage

As an aside, when it comes to understanding the basics of New Jersey divorce law in anticipation of financial negotiations in a New Jersey divorce, you must familiarize yourself with certain terms, including:

• Marital property, which is property acquired during marriage; and,
• Separate property, which consists of such things as:
  • Inheritance
  • Gifts
  • Pre-marital assets

Gather Financial Documentation

As part of the preparation process, you need to gather and organize all relevant financial records. These key, crucial documents include:  

• Tax returns (past 3–5 years)  
• Pay stubs, bonuses, and employment contracts  
• Bank, investment, and retirement account statements  
• Mortgage documents and property deeds  
• Credit card statements and loan balances  
• Business valuations (if applicable)  

Assess the Marital Estate

Considering what has already been discussed in this article, it is important to make an assessment of what technically is known as the marital estate as part of preparing for financial negotiations in a New Jersey divorce. This includes categorizing assets and debts in a manner that includes:

• Marital assets:
  • Joint bank accounts
  • Homes
  • Vehicles
  • Pensions accrued during marriage
• Separate assets:
  • Inheritances
  • Gifts
  • Property owned before marriage

You may need to engage the services of professionals including appraisers for real estate, businesses, or high-value items.

Consider Alimony and Child Support

Financial negotiations require a close consideration of matters related to child support and alimony (if applicable). Alimony or spousal support depends on factors like:

• Earning capacity
• Marriage length
• Established lifestyle

Keep in mind that New Jersey divorce courts may award temporary, rehabilitative, or permanent alimony.

Child support follows statewide guidelines which consider such key factors as both parents’ incomes as well as proposed custody arrangements.

Create a Post-Divorce Budget

As part of preparing for financial negotiations in marriage dissolution proceedings, strive to craft a realistic budget reflecting your post-divorce income and expenses. You will need to prioritize essentials that necessarily include housing, healthcare, childcare. It is very likely that you will need to identify areas to cut back. If keeping the marital home, factor in maintenance costs. Bear in mind that a clear budget strengthens your negotiation position by highlighting what you need versus what you can compromise on during negotiations.  

Develop a Negotiation Strategy

You need to develop an actual negotiation strategy. An experienced New Jersey divorce attorney can assist in crafting an effective negotiation strategy. The development of a negotiation strategy includes steps to: 

• Prioritize goals
• Rank needs
• Rank wants.  
• Stay solution-focused and avoid emotional arguments by using facts and documentation.  
• Compromise wisely by trading lower-priority assets for critical ones
• Know your personal limits by understanding your “walk-away” point if negotiations stall  

Prepare for Mediation or Litigation**  

Finally, many New Jersey divorces require mediation prior to a trial. Come prepared with documentation, a clear agenda, and willingness to collaborate. If mediation fails, the next step in an intensive settlement conference with the judge then a trial.  If you have questions concerning financi​al negotiations in a New Jersey divorce,call the Law Offices of Peter Van Aulen today at (201) 845-7400 for an initial free consultation.