Breadwinner Priorities and Pitfalls in NJ Divorce Proceedings
Experienced Family Law Firm Advocating for Breadwinners in Passaic County, Bergen County, Essex County, and North Jersey
Frequently in a marriage, one spouse earns more than the other. This is especially true when the mother or father stays home and cares for the children. The breadwinner in a marriage is the person who earns most of the household income. What was traditionally considered a man’s role has been converted into one for either spouse. When there is a divorce, people assume that the breadwinner is responsible for supporting their ex forever. While it is probable that there will be spousal and child support orders, numerous factors are taken into account that protect both parties. Each divorce is unique, which makes an already complex process even more so. Having a family law attorney to explain your options is imperative. The highly respected New Jersey family lawyers at Montanari Law Group understand the unique challenges breadwinners face during divorce and provide skilled legal representation to protect your interests. We assist with preserving the financial and personal interests of breadwinning spouses during divorce cases in Short Hills, Millburn, South Orange, Clifton, Little Falls, Montclair, Livingston, Ridgewood, and throughout Northern New Jersey. Contact us today at (973) 233-4396 to discuss your case and understand your options. The consultation is absolutely free and confidential. Get a head start by connecting with our attorneys today.
Financial Obligations of Primary Earners After Divorce
Paying Alimony to Your Ex Spouse
When a marriage ends, the courts look for ways for the spouses to maintain the same standard of living after the split. Alimony is determined based on many factors, such as the income and assets of each spouse, their earning capacity, education, physical and mental health, and most importantly, the length of the marriage. It is not a hard and fast rule, but the courts have traditionally established the length of alimony to coincide with the years the spouses were married. There are four kinds of alimony.
Open durational alimony has no specific end date. It is typically awarded in marriages lasting more than 20 years. Limited-duration alimony is usually awarded for the same amount of time the couple was married. Its goal is to provide temporary financial support to the ex who needs time to return to the workforce and support themselves independently. Rehabilitative alimony is used when one spouse has given up their education or career to care for the household. Its duration is linked to the time the receiving spouse needs to acquire the necessary training or education to gain suitable employment. Reimbursement alimony is used for the ex who supported their spouse’s education or career advancement, thereby sacrificing their own earning potential. This type of alimony can be given in combination with other types and paid in one lump sum. Concerning income taxes, alimony payments are tax-deductible, and the money received is taxable.
Divvying Up Your Assets as the Breadwinner
Because New Jersey is an equitable distribution state, the division of assets is not a 50-50 split; it is a fair and equal division that contemplates the length of the marriage, the income or property brought into the relationship, the value of that property, the standard of living, earning capacity, and economic capacity of each spouse. The courts encourage divorcing couples to decide what goes to whom, but when they can’t, a judge will do it for them. Equitable distribution and alimony work in tandem to provide the economic support needed for the receiving spouse to continue living the lifestyle to which they are accustomed.
Anticipating Child Support Contributions
Child support is calculated using the parents’ combined net income and taking custody into account. The non-resident parent usually contributes the most. In this case, if the breadwinner is the custodial parent, they may receive less financial support based on the non-resident parent’s income. Factors such as health insurance and child care are also considered.
Maintaining Two Residences as the Breadwinner in a Divorce
Maintaining two houses is expensive, if not impossible. Keeping the marital home while living at a separate residence can be a budget-crusher: two times the bills, rent (or house payments), groceries, cars, gas, utilities, and so on. The breadwinner will likely be responsible for most of the financial burden until they no longer have to pay alimony or their ex returns to work. Shared debts may be allocated more heavily on the breadwinner. Child support payments add fuel to the financial dumpster fire, and what was once a lucrative existence may quickly transform into a race to keep the lights on and the family home out of foreclosure or off the market at the very least.
Strategies for Breadwinning Business Owners
Business owners face unique challenges when divorce affects their professional assets. The court will require a formal valuation to determine how much the business is worth. A forensic accountant may be necessary to decide on the business’s value, expenditures, and profits. The breadwinner may have to buy out their ex’s share if it is a shared asset. The management and daily operations during the divorce may be affected, as will the cash flow if support obligations are paid out of business income. The divorce settlement will determine how the income is shared from the business and who will have ownership after the divorce.
Wise Financial Planning for Breadwinners During Marital Dissolution
The ideal situation for a breadwinner would be to have a prenuptial agreement. This would clearly state which assets are shared or individual and how they would be distributed in the case of a divorce. While hindsight is 20/20, some steps can be taken to prevent being taken to the cleaners if a prior agreement was not made. Hiring an attorney from the start is valuable to a breadwinner who wants to protect their financial interests. An attorney can work with a financial advisor to separate assets into individual or shared categories while negotiating a fair division of the assets between spouses. One thing is for sure: the court frowns on attempts to hide or manipulate assets. For example, offering large loans or giving away luxury items, real estate, or cars obviously lowers a person’s net worth. Full financial disclosure and an accurate appraisal of assets are essential. Consulting a financial advisor once the dust has settled would greatly benefit the breadwinner.
Custody Concerns for Breadwinners in Divorce Situations
Parental rights are not exclusively related to income. In fact, a parent’s income is only one of several factors the court considers in a list known as the child’s best interest. It is a composite of several areas the court examines before making a custody decision. These factors include how well the parents cooperate and communicate with each other, their income, mental and physical health, employment, the ages of the children, their educational needs, and any history of abuse or violence. Parents seeking custody must be able to provide a safe space where a child can study, play, and have their own sleeping area.
The courts seek joint custody whenever possible. Studies have shown that children who spend equal time with both parents perform better academically and have less difficulty adjusting to the divorce. The state of New Jersey supports the right of children to have a relationship with their parents despite the change in marital status. Having a family law attorney to protect your interests when negotiating custody and visitation agreements is extremely advantageous. It provides the support and peace of mind you need most during such an arduous process.
Speak to a Seasoned Divorce Attorney Providing Guidance and Representation for Breadwinners in Montclair and Ridgewood NJ
Being the breadwinner of the family puts enormous stress on your shoulders. At Montanari Law Group, our divorce and family law attorneys have years of experience working for clients like you who work hard to support their family and don’t want to be taken advantage of. We know how complicated the division of assets, alimony, and child support is for breadwinners throughout the divorce process. As such, our dedicated lawyers will find solutions that fit your specific needs. With a successful track record brokering favorable settlements on behalf of breadwinners in divorce, we are also talented litigators who will protect your rights in court if necessary.
A breadwinner’s precarious position during a divorce requires an experienced family law attorney with the resources and knowledge to provide guidance from start to finish. We will defend your rights when facing alimony and custody issues, protect your assets, and zealously advocate for you to the fullest extent. You are not a money tree or a bottomless bank account. You should be able to enjoy the benefits of your hard work and continue a close relationship with your children, which is what we are committed to ensuring for divorcing clients throughout Northern New Jersey, including in Little Falls, Woodland Park, Franklin Lakes, Caldwell, Verona, Nutley, and Wyckoff . If you would like to know more about how we can help you as the breadwinner in a divorce matter, call us today at (973) 233-4396 or contact us online for a free consultation.
