New Jersey Lawyer: Assets in Divorce: The House, Retirement Accounts, Brokerage Accounts, Inheritanc
This guide is about the division of assets concerning a New Jersey divorce. The guide will focus on dividing key assets such as: the marital home, 401k/IRA and other retirement accounts, brokerage accounts, other investments, and inheritance.
The Marital Home in a New Jersey DivorceThe marital home can be one of the most fought over assets in a divorce. The house can be sold and the proceeds can be split, one party can buy out the other's share, or one party can receive a credit for the home against other assets in contention. At times, if the parties cannot agree, the Court could order the house sold. This is assuming the marital home is a marital asset purchased during the course of the marriage. It is important to know that even if the home is in one spouse's name, the other spouse still has a marital property claim. Which percentage the court will use to divide the proceeds depends on many factors under the New Jersey Equitable Distribution Statute.
Retirement Accounts in a New Jersey DivorceThe marital portion of a retirement account will be split as well by using a QDRO (to avoid any potential tax penalties) or other method to divide the asset. Any money in the retirement account that was in the account prior to the marriage is not subject to division. The parties usually need to analyze the retirement account.
Investment Accounts and Other Investments in New JerseySimilar to a retirement account division, investment accounts will be divided if a settlement is not reached with the marital portion only being considered for equitable distribution. If it is another form of investment such as: real estate, business ownerships/partnerships, a valuation must be determined and the various factors of equitable distribution must be used. Money in the account prior to the marriage is not considered.
Inheriting Money and Dividing Inheritance in a New Jersey DivorceIf you received gifts from someone or inherited money, that money is not subject to equitable distribution. That money belongs to the person that inherited it. The key is to try and avoid commingling the asset.