Though much of the property division negotiations may not always be foremost in one’s mind, it’s extremely important that attention is focused upon this aspect of divorce. It is especially a mistake to not take seriously matters concerning the division of retirement assets.
Retirement funds may be the largest asset that a couple has and careful consideration must be made when dividing this asset up. As an example, a spouse may promise the other spouse a specific amount when it comes to a retirement account without taking into consideration that the account could lose rather than gain value over time.
Couples must always take into consideration the tax implications that can come about when dividing up a retirement account. Incorrectly transferring assets from one account into another could result in the Internal Revenue Service treating this transference as a full distribution. Owners often forget to change beneficiary designations on an account as well and this can result in the wrong individual taken possession of it later on.
New Jersey is an equitable distribution state when it comes to property division. This means that essentially all property or assets could be subject to division. Couples will thus want to take into consideration all of the complexities that come along with the division of assets such as a retirement account.
Attorneys assisting in the various financially complex areas of family law can prove helpful when it comes to property division. As this process becomes even more complex when speaking of high asset division, sound legal advice can prevent major financial headaches later on.
Source: Business Day, “How to divide your retirement assets in a divorce,” Dec. 31, 2013