The division of assets is one of the most complicated parts of the divorce process. Like many other states, New Jersey’s divorce courts use the equitable distribution concept for asset division. This means that a divorcing couple’s shared property must be split fairly between both parties in the final settlement. Spouses can create an agreement on their own terms with the help of a lawyer or a mediator. If the spouses cannot come to an agreement themselves, a divorce judge will have to decide on a settlement on their behalf. If you’re in the midst of this process, you might have questions about what will happen to your retirement plan. Our knowledgeable law firm has all the answers you’re looking for! Continue reading this blog to find out more information or speak with one of our Experienced Mountainside Property Distribution Attorneys who can provide specialized legal counseling.
WHAT HAPPENS TO RETIREMENT ACCOUNTS IN THE DIVORCE PROCESS?
In the New Jersey divorce process, retirement accounts almost always fall under the category of marital property. Under equitable distribution laws, any assets that were acquired during the marriage by either spouse can be considered marital property that needs to be divided between both parties. Therefore, any funds that were acquired for a spouse’s retirement plan while they were legally married should be distributed during asset distribution in the divorce process. A long list of factors is usually considered during these legal proceedings. The most common considerations for asset distribution in a divorce are the length of the marriage, each spouse’s age/health, each spouse’s financial status, and more.
DO I NEED A QDRO?
Most divorcing couples need a Qualified Domestic Relations Order (QDRO) in order to divide their retirement plans accordingly. A QDRO is basically a court order that allows divorcing spouses to divide funds in a retirement account without receiving tax consequences or other penalties. The last thing you want is for your retirement plan to be negatively affected. This is why our law firm highly recommends hiring a trustworthy divorce attorney who can help you file this legal document to ensure the funds are divided successfully.
Are you thinking about filing for divorce in New Jersey? If so, you might be seeking a talented divorce attorney who can guide you through this complicated legal process. Look no further because our highly experienced legal team is on your side every step of the way. Contact Ross & Calandrillo today for an initial consultation.