Many New Jersey couples who file for divorce are surprised at how difficult it can be to agree on an equitable way to split large assets such as retirement plans, bank accounts or the marital home. Even if both spouses do reach an agreement, the process required to legally get an asset transferred from one spouse to another may take longer to complete than the divorce itself.
Because changes in retirement accounts often must be approved by the entity serving as administrator of the fund, even agreed upon changes can face significant delays before they are implemented. The length of this delay can have real world consequences for newly single spouses who are planning to use their portion of the retirement funds to help them finance goals like paying off debt or pursuing more education.
Legally finalizing the agreement for the marital home can also present unforeseen problems. Sometimes the spouse who is planning to remain in the home after the divorce may face issues when trying to obtain mortgage financing in their own name. The spouse who is planning to leave the home may be unable to move forward with new living arrangements until the deed and mortgage details have been transferred on the home that was shared during the marriage.
Even after the negotiating has ended and the divorce decree is final, former spouses soon begin to realize that they may be dealing with various financial loose ends together for many months to come. Attorneys working with divorced clients may be able to help them with addressing unforeseen legal complications that may arise as they attempt to begin their new life.
Source: Post Gazette, “Divorcing couples face sea of potential issues when dividing financial assets “, Tim Grant, September 02, 2013