Divorce can bring many uncertainties, especially when it comes to finances. Your biggest concern might understandably be whether you will lose your retirement savings.
The answer depends on several factors, including the type of retirement account and when you accumulated the savings.
New Jersey asset division
New Jersey follows the principle of equitable distribution when dividing marital property. Equitable distribution does not mean that everything gets split evenly down the middle. Instead, the court aims to divide assets in a way that is fair and just based on the specific circumstances of the couple. Retirement savings, like other assets, may be subject to this process.
Understanding retirement assets
Retirement savings accumulated during the marriage usually count as marital property. This means that the court can divide these funds between the spouses. However, any retirement savings acquired before the marriage typically remain the individual property of the original owner. The court will look at several factors when deciding how to divide retirement accounts. These factors include the length of the marriage, each spouse’s financial situation and contributions to the marriage.
Equitable distribution of retirement savings
It is important to understand that the court might not always divide retirement savings equally. One spouse might receive a larger share of other assets, like the family home, while the other might keep more of their retirement funds. The court’s goal is to ensure that the division of assets reflects the contributions and needs of both parties.
Whether you will lose retirement savings in your New Jersey divorce depends on several legal factors. The court aims to divide property in a way that is fair to both parties, considering each person’s unique situation. Couples also have the option to negotiate the division of assets outside of court, if they so choose.
