Marital Property | Separate Property
NJ Property Division Attorneys
New Jersey Property Division Attorneys
Marital Assets vs. Separate Property
When you choose to divorce in the State of New Jersey, you will need to know which of your assets are deemed to be “marital” marital property and thus subject to property division. Contrary to popular belief, not every asset is subjected to property division and many assets are actually considered to be “separate” property. In some situations, even assets that existed during the course of your marriage can be exempt from distribution, and as such, your spouse may not receive any claim or interest in the asset during your divorce.
It is important to understand exactly what is included in the distribution at the time of an NJ divorce—and what is not included. Many people mistakenly believe that if their name is the only name listed on a bank or retirement account, then the other spouse automatically has no right to it; however, this is not necessarily true, as illustrated by the example below:
Example:
You were married on September 1, 2000.
Prior to your marriage, you started to contribute to your 401K plan on January 1, 1995.
You contributed to your 401K from every paycheck up to and even after the filing of the Complaint for Divorce on July 15, 2007.
Your spouse does not have a 401K plan.
Only your name has been listed on your 401K account.
No money has ever been removed from the account.
According to this example, your spouse is entitled to an equitable distribution (probably 50%) of the marital portion of your NJ 401K that was accumulated from the date of the marriage to the date of the filing of the Complaint for divorce. (In this situation it would be from September 1, 2000 through July 15, 2007). Your pre-marital share of the 401K, the money contributed before the date of marriage, is your separate property. Additionally, your post marital share of the 401K, the money contributed after the date of the filing for complaint for divorce is also your separate property. Therefore, your NJ spouse has no right to share in this pre and post portions of your 401K.
Typically, your New Jersey spouse’s marital share of your 401K will be transferred directly from your 401K into an IRA account exclusively in your spouse’s name. While this eliminates any tax penalties because it is incident to a New Jersey divorce, a Qualified Domestic Relations Order may be necessary in order to effectuate this transaction. Please keep in mind that there are nuances involved with which a seasoned family law attorney will assist you.
Be Prepared and Get Educated on New Jersey Divorce Asset Division
This example is merely one of the many different scenarios you may encounter during your NJ divorce process; therefore, it is important to have a knowledgeable NJ property division attorney on your side. Since each scenario has various considerations and implications, the veteran New Jersey property division attorneys at Weinberger Law Group, LLC will need to evaluate your situation closely to determine all of your legal options. Proper evaluation, preparation, and education of marital property vs. separate property, are the best ways to protect your assets and your rights during a New Jersey divorce.
Protect your NJ assets today by contacting the experienced New Jersey property division attorneys at Weinberger Law Group, LLC to schedule a FREE INITIAL CONSULTATION.
For more information about New Jersey marital property, NJ separate property, New Jersey assets, NJ divorce, or other family law matters, please contact us for a free consultation.
Our partner, Bari Zell Weinberger, is certified by the Supreme Court of NJ as a Matrimonial Law Attorney. This Certification is achieved by only 2% of the attorneys in New Jersey.
