WHAT IS A MARITAL ASSET &
WHAT IS SEPARATE PROPERTY?
New Jersey (NJ) Property Division Attorneys
Our New Jersey divorce and family law attorneys will help you identify what assets and liabilities are deemed to be “marital” and subject to property division and what assets are considered to be “separate" and not subject to property division. There are many instances where assets that exist during the course of your marriage are actually exempt from distribution, meaning that your spouse may not receive any claim or interest in the asset. It is important to understand what is included in the distribution at the time of a divorce and what is not. Many people have the misconception that if their name is the only name listed on the bank or retirement account during the marriage, then the other spouse automatically has no right to it. This is not necessarily true. This can be illustrated using the example below:
Example:
You were married on September 1, 2000.
You started to contribute to your 401k plan on January 1, 1995, which was before your date of marriage.
You continued to contribute 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.
Question: Is your spouse entitled to any portion of your 401k account at the time of divorce?
Answer: Yes. Your spouse is entitled to an equitable distribution (probably 50%) of only the marital portion of your 401k accumulated from the date of the marriage (September 1, 2000) to the date of the filing of the Complaint for Divorce (July 15, 2007). Your pre-marital share of the 401k is your separate property and your spouse has no right to share in this part of your asset.
Typically, your spouse’s marital share of your 401k will be transferred directly from your 401k into an IRA account exclusively in your spouse’s name. No tax penalty is realized due to this transfer because it is incident to a divorce, but a Qualified Domestic Relations Order may be necessary in order to effectuate the transaction. It should be understood that there may be an increase or decrease to the total amount transferred due to market condition and this type of transfer may not be in your best interest depending on your specific situation.
Be Prepared and Get Educated
It is important to have knowledgeable NJ legal counsel on your side to prepare you for the many different scenarios that may exist in your matter. Each scenario has various considerations and implications and our knowledgeable asset distribution attorneys can educate you on what to expect and help you fight for your rights.
Protect your assets today by contacting the experienced New Jersey property division attorneys at the Weinberger Law group, LLC to schedule a FREE INITIAL CONSULTATION.
