Whether New Jersey couples would admit it, money is a central issue and concern when ending a marriage. Each party is attempting to secure a financial future that is at least comfortable. This might account for the fact that businesses and/or business interests, retirement and alimony are the three top monetary issues dealt with during the property division portion of a divorce.
When one party asks for alimony, an agreement might be reached that does not require the other party to make payments for an extended period of time. Other assets — including retirement accounts — could be traded for a shorter duration of payments. It is one thing to understand that retirement will need to be rebuilt after a divorce, but many people do not want to face the prospect of working for several additional years in order to make alimony payments.
A party might also be willing to accept other assets in lieu of a portion of a business or business interest. In any case, it will be necessary to value the business before any agreements are made. This could easily become a point of contention if the parties are unable to agree on how to value it.
Each party will need to decide what it is they want most out of the divorce settlement. If a New Jersey couple wants to negotiate their own agreement, they will first need to understand that some compromises are going to be needed in order to reach a mutually satisfactory conclusion. If there are any issues the parties are unable to resolve, the court can step in and make the decision on their behalf.
Source: Fox Business, “Can You Lose Your 401k in a Divorce?“, Casey Dowd, Aug. 11, 2016