While New Jersey is an equitable property state, this does not mean that all seemingly "personal" property will be safe from division in a divorce. Some spouses think that maintaining their own separate accounts provides financial protection if their marriages end, but the reality is more complex.
Prenuptial agreements can make divorce less stressful and more efficient, but there are a number of misconceptions about prenups that make New Jersey couples less likely to have them. People often believe that prenups are only useful where one or both spouses are wealthy, that executing a prenup makes divorce more likely or that they are only useful in the event of divorce.
Individual retirement accounts have long been an important asset and bargaining chip for divorcing spouses in New Jersey and around the country, but there are no regulations, official rulings or Internal Revenue Service guidelines dealing with how inherited IRAs should be handled during property division talks. However this has not prevented family law judges from approving divorce settlements that divide inherited IRAs, and IRA custodians, who may not wish to defy a court order, are complying with the provisions of these agreements.
Couples in New Jersey who are getting a divorce can end up with unpleasant surprises if they divide their retirement assets in the wrong way. To avoid high penalties, unexpected tax bills and an ex-spouse receiving a higher share than intended, it is important that spouses are aware of how different retirement accounts should be treated.
Property division negotiations sometimes become contentious when New Jersey couples file for divorce, and this can be especially true when a family business is one of the assets being discussed. Such commercial ventures are often run by one of the spouses involved, and non-operating spouses frequently believe that the business is far more profitable than it actually is. Thorny matters generally include the value of the enterprise and how much income it generates each month.
New Jersey couples who are getting a divorce might need to sell their home. This happens in almost two-thirds of divorce cases. It is not always possible for one spouse to buy out the other. There are several things couples can do to make this process go more smoothly despite the emotional difficulties that accompany it.
People in New Jersey facing the end of their marriages are already dealing with the emotional and psychological fallout of divorce. Of course, another aspect of divorce is also the financial aspect: dividing assets and debts and dealing with the distribution of various types of property. From real estate to retirement savings, all kinds of financial assets and investments are subject to property division during divorce.
When New Jersey couples are going through a divorce, one of the most important subjects that might have to be discussed in property division negotiations is the marital home. They will have to reach an agreement about who will get to keep the home or whether they will sell it instead.
For some individuals getting a divorce in New Jersey, getting out of the family home is an important part of moving on to a fresh start. In other cases, spouses may have strong reasons for wanting to remain in the family home after the end of their marriage. Because the value of a home is often quite high, real estate division can be a sore point in divorce proceedings.
While divorce is often the best option for many couples, the process of dissolving a marriage can still be difficult. One of the biggest challenges those in New Jersey and other states face when divorcing is how to handle the house and a mortgage. This applies when a house is joint property, and there are a number of options available.