Recent studies show that 1 in 4 divorces involve people 50 and over. Naturally, divorce for individuals in their 50s involves different considerations than for younger couples.
In many cases, child custody, visitation, and child support are non-factors. This is because children are often already grown or past the age of financial support. Instead, contention frequently centers on alimony and equitable distribution. Couples in this age bracket have typically amassed more wealth and valuable assets.
Townsend, Tomaio, Newmark & Clancy is a well-equipped boutique family law firm in Morristown, NJ. Our Morris County attorneys have the experience to handle high profile individuals, high net worth couples, and business owners. Contact us today to discuss your “Gray Divorce.”
Retirement Plans and Gray Divorce
The division of retirement plans, such as 401(k)s, is a complex issue. Courts take various factors into account when deciding how these plans should be divided.
The Duration of Marriage Factor
The court first considers the duration of the marriage. It is crucial to determine what was contributed to the account during the marriage and by whom. Key rules include:
- Pre-marital Assets: Investments made prior to the marriage are generally not subject to equitable distribution.
- Marital Contributions: Funds and profits deposited during the marriage are factored into asset division.
- Legal Entitlement: In New Jersey, spouses are legally entitled to up to 50 percent of what was contributed during the marriage.
The “term of the marriage” is defined from the date of marriage until the date the divorce complaint is filed.
The Qualified Domestic Relations Order (QDRO)
Once the division amount is finalized, it is included in the judgment of divorce. Your attorney must then draft a Qualified Domestic Relations Order (QDRO). This document:
- Provides the plan administrator with specific division details.
- Ensures compliance with the Employee Retirement Income Security Act.
- Establishes the non-owner spouse as an “alternate payee” on the plan.
Avoiding Withdrawal Penalties
Withdrawing from a retirement fund before the maturity date often carries aggressive penalties. However, a QDRO allows for penalty-free or penalty-reduced withdrawals for certain funds. It is vital to work with a Chatham equitable distribution attorney to understand which plans qualify.
Open Duration Alimony in New Jersey
In New Jersey, alimony is typically awarded for a duration no longer than the length of the marriage itself. However, there is an exception for marriages lasting 20 or more years. Many “gray divorce” cases meet this 20-year threshold.
If a marriage lasted 20+ years, a dependent spouse can petition for open duration alimony. This support lasts until either party passes away or the dependent party remarries.
Modifying Open Duration Alimony
If circumstances change substantially for either party, the agreement can be modified. A court may order an increase or decrease in alimony obligations depending on the new situation. Having a skilled Mendham attorney as your advocate is essential during these modifications.
Contact Our Morristown Gray Divorce Attorneys Today
The experienced attorneys at Townsend, Tomaio, Newmark & Clancy are prepared to safeguard your interests. We serve Morristown, Chester, Chatham, Mendham, Harding, and all of Morris County.
Call 973-840-8970 or contact us online for a free confidential consultation with our legal professionals today.
