The Role of the Savings Component in NJ Divorce
When our firm is retained in a divorce matter in order to calculate alimony and go and investigate the family's income, one of the things we always look at is what's called savings component.
What is a savings component? It's often overlooked in divorces.
Saving component is the amount of money that the family saves on an annual basis. For example, let's say someone is making $2,000 a month and they pay $500 in taxes and your expenses are $1,000, that $500 difference is saved. It's put in a savings account, IRA, it's saved somewhere.
So in a divorce we always say, "Well, their expenses were not $1,000, their expenses were $1,500," because you have to add in the savings component.
It's very important that once the divorce is finalized that the non-monied spouse is still able to save just like they did when they were married. And that's why we take a look at the savings component, extremely important.
If you have any questions on the savings component in a divorce feel free to give me an email.Return to Video Gallery