When navigating a divorce in New Jersey, concerns about retirement often take a backseat. However, retirement accounts are valuable assets and can be crucial for ensuring your future financial security. It’s important to recognize that your spouse may be entitled to a share of your spouse’s retirement savings during the divorce. Please continue reading to learn more about these matters and how our adept Monmouth County Division of Assets Attorneys can help protect your interests.
Is New Jersey an Equitable Distribution State?
When it comes to dividing marital property between spouses in a divorce New Jersey operates under the equitable distribution rule. This legal theory requires the court to divide any assets, property, and debt accumulated during the marriage in a fair manner. It’s important to note that that fair doesn’t always mean that each spouse is entitled to get an equal share of the marital property. To determine a fair division, the court will take various factors into account, including:
- Age and health of each spouse
- The duration of the marriage
- The standard of living during the marriage
- Each spouse’s contributions to the marriage
- Each spouse’s earning capacity
- Any premarital agreements
- Each spouse’s current financial situation
- The value of the marital property
- Each spouse’s future financial needs
- Any other relevant factors
Is My Spouse Entitled to a Portion of My Retirement Savings?
Although retirement accounts are usually held individually, they may be subject to division during a divorce. Retirement plans are divided through a qualified domestic relations order (QDRO). With this, the court can award all or a portion of your retirement savings to your spouse, former spouse, child, or other dependent. A QDRO can include lifetime benefits from a pension or 401(k).
If the retirement plan was acquired during the marriage, it will be subject to equitable distribution. Essentially, your spouse may be entitled to a portion of your retirement savings because funds contributed to retirement accounts during a marriage are considered marital property. Depending on the unique circumstances of your case, the court may divide a retirement plan through deferred division, meaning the proceeds will be divided once the benefit begins.
At Paone Zaleski & Murphy, we are prepared to help you understand the laws surrounding the division of retirement assets. Contact our legal team today to schedule a consultation so we can begin formulating a strategy to best represent you through every phase of your divorce. Our firm can help protect your hard-earned assets. Connect with us today to learn how our Monmouth County division of asset attorneys can fight for you during these tough times.
