New Jersey couples who decide to part ways often require answers to questions about property division, bank accounts, assets, valuation and objects of sentimental value. This is true whether the marriage has been long or short. Understanding the process can go a long way in making it easier.
With property often come disagreements as to whom will keep what. If the property was owned by one spouse prior to the marriage, was received as a gift or inherited, it will normally be excluded from being part of the marital property. With respect to the division of marital property, most states (including New Jersey) will utilize equitable distribution principles in the absence of an agreement, and will divide the property in a fair, but not necessarily equal, manner.
Retirement accounts and taxes also come to the forefront when a marriage is coming to an end. For example, if both spouses have corporate retirement accounts, they’re considered marital property and it might be necessary for a qualified domestic relations order to be issued in order to divide them without premature withdrawal penalties. As for taxes, until the divorce is completed it might benefit a couple to continue filing joint returns. Filing separately before the divorce is completed is less risky, but will lead to more taxes. Once the divorce is complete, the filings will have to be separate. A family law attorney can provide answers for these questions and many others.
For a person that has many assets to consider, knowing how the divorce process moves forward and what to expect can smooth hindrances that would otherwise slow the resolution. Receiving advice on how marital property is determined and methods to negotiate can be beneficial.
Source: NerdWallet , “Divorce: Making Sense of the Confusion“, J. Kevin Stophel, June 03, 2014
