As couples in New Jersey go through the divorce process, they have to work out a lot of issues, including who will get the marital home and how custody of the children will be arranged. It can be easy for couples to focus on what needs to be taken care of in the short term. However, they should not overlook how their divorce will affect them in the future, especially when it comes to how their retirement could be affected by divorce.
A person may quickly assume that a pension will automatically go to the individual who earned it at their job. However, it is important for individuals who are going through the divorce process to know that pensions are considered to be marital assets. The portion of the pension that was earned during the marriage is likely subject to be divided during the divorce. Laws in each state differ, so it is good to know if it will be necessary to offset this loss with other assets in order to keep a pension intact.
An IRA stands for an individual retirement account. This means that just one person’s name appears on it. However, couples shouldn’t assume that this will not be considered a joint asset during the divorce process. No matter whose name is on the asset, if it was acquired during the marriage, it is usually considered to be the property of both individuals. If a person accesses an IRA before they are 59 and a half years old, they will likely pay a penalty.
As a person goes through the divorce process, they need to think about their long-term and short-term finances. Consulting a family law attorney may help a person who is going through a high-asset divorce to learn about the laws surrounding asset valuation, retirement plans and asset division. The attorney may be able to represent their client in court if it is necessary.