The economy is always a hot topic, for good reason. It affects every aspect of our lives, including divorce. How does the current economy affect my divorce? That is a question that many people are asking these days. Our divorce attorneys at DeTommaso Law Group, LLC share insights on how the current economy might affect your high asset divorce.
The Current Economy
With high inflation rates, you may be concerned about how the current economy can affect your divorce. Since the economy may affect spending and earning levels, it can be concerning if you wish to exit your divorce with high-valued assets following the equitable division of property or ample support for yourself and your children.
How It Relates to the Distribution of Assets
The economy can have an impact on divorce in a few different ways. For example, the current economy may affect the distribution of assets. This is because investments are often regarded differently in a divorce than other assets. When it comes to dividing up investments, the court will typically look at what would be considered the fair market value of those investments. The fair market value is the price that would be paid for an asset by a willing buyer when neither party is under any compulsion to buy or sell, and both parties have reasonable knowledge of all the relevant facts.
However, in times of economic recession or depression, the fair market value of investments may be lower than what it was when the couple originally acquired the asset. This can have a big impact on how assets are divided in a divorce, as these assets may be valued lower than usual but may grow in value following the finalization of the divorce.
How It Relates to the Awarding of Support
In addition to the division of assets, the economy may also affect support orders. For instance, if one spouse is ordered to pay spousal or child support and they lose their job or suffer a decrease in income, they may be able to later modify their support order. In some cases, a temporary modification may be granted until the spouse is able to find new employment. However, if the economy has caused a permanent change in income, then the court may grant a permanent modification to the support order.
The initial awarding of support may be affected by the current economic situation, especially if one party takes on a lower-paying job to secure employment. This may affect the initial awarding value, which may result in the need for a modification later once one or both parties begin jobs with different salaries.
A Strategic & Aggressive Approach to New Jersey Divorce
Exiting your divorce with the best possible outcomes — no matter the economic state of our nation — is likely one of your top priorities. Our Warren County divorce attorneys are focused on creating a strategic approach to your divorce, helping you move forward in your life after divorce.
Are you preparing for a divorce and unsure of how the economy may affect your assets? Schedule a consultation today by calling (908) 274-3028 or contacting us online.