Can My Spouse Take Half My Retirement In A New Jersey Divorce?
The divorce process can completely change a person’s financial status. This is because assets that were shared by the married couple must now be distributed between both divorcing spouses in a New Jersey divorce. If you’re thinking about filing for divorce, you might have questions about how your retirement accounts will be handled during this complicated legal process. The good news is that our knowledgeable law firm has all the answers you’re looking for! Continue reading this blog to learn more, or reach out to one of our New Jersey Dividing Retirement Assets Lawyers who can provide individualized legal counseling.
WHAT HAPPENS TO RETIREMENT ACCOUNTS IN A NEW JERSEY DIVORCE?
Any retirement plans, such as 401(k)s and IRAS, that were acquired by either spouse during the marriage are considered marital property in a divorce. Since New Jersey uses an equitable distribution model, all marital property, including pension, must be fairly divided between divorcing spouses. Keep in mind that this doesn’t necessarily mean that the assets will be split 50/50 between both parties. Spouses can make asset division decisions themselves with the help of a divorce lawyer or mediator. This can be ideal if you want more control over what happens to your property. If the spouses cannot come to a reasonable agreement on their own, a judge in divorce court will need to make the final decision. In this scenario, the judge takes a long list of factors into consideration, such as the length of the marriage and each spouse’s financial status. The exact distribution always varies from case to case.
DO I NEED A QDRO?
A Qualified Domestic Relations Order (QDRO) is a court order that allows divorcing spouses to divide funds in a retirement account without facing tax penalties or other consequences. These are separate from your regular settlement agreement. There’s a good chance you’ll need a QDRO if you’re planning on splitting retirement accounts in your New Jersey divorce. We recommend contacting a divorce lawyer for help in filing this legal document. An excellent attorney will know the best way to divide the assets that would be beneficial for both spouses.
Are you considering filing for divorce in New Jersey? If so, you might be seeking a talented divorce attorney who can guide you through this complicated process. Look no further because our highly experienced legal team is on your side every step of the way! Contact Townsend, Tomaio & Newmark today for an initial consultation.