Union, New Jersey Family Law Attorney Helping Clients in Division of Retirement Assets
Retirement assets provide us with the financial security for when we grow old. Accumulating these assets takes time, planning, and commitment. Retirement assets include 401(k) plans, 403(b) plans, pension plans, IRAs, and other deferred compensation. Union family law attorney John B. D’Alessandro understands how important the security of your retirement assets are to you. When you are going through a divorce, it is natural to feel concerned about what will happen to your or your spouse’s retirement assets. New Jersey’s law on division of retirement assets is complex, which is why our firm will walk you through this process step by step. Our firm works hard to ensure that your financial safety net is protected, or that you receive your fair share of marital assets.
Division of Retirement Assets Law in New Jersey
Division of retirement assets is especially important because retirement assets often account for most couples’ nest egg. With concerns of fairness, New Jersey courts will aim to ensure that all property is distributed equally. With respect to retirement accounts, like 401(k) accounts, it is important to identify when contributions were made to the account. More specifically, funds contributed to these accounts prior to marriage (and growth accumulating from these contributions) may be excluded from equitable distribution. Additionally, after the divorce complaint has been filed, any funds contributed thereafter will also be excluded from equitable distribution.
Retirement accounts require special care in distribution. Unlike checking or savings accounts, retirement accounts are often subject to the Employee Retirement Income Security Act (ERISA). Retirement accounts subject to ERISA are qualified plans and can only be distributed to a former spouse via a Qualified Domestic Relations Order (QDRO) that is approved by the retirement plan. A QDRO is an order entered by the court to separate qualified retirement assets from one spouse to another and to divide assets. QDROs are complicated and should only be drafted by a skilled attorney such as Union family law attorney John B. D’Alessandro. Not all retirement accounts are subject to division through a QDRO. Some plans, such as IRAs, do not require a QDRO and will only require a Domestic Relations Order (DRO). Due to the complexity of the law, you should seek the advice of a qualified and experienced family law attorney. It is important that you seek the advice of an attorney prior to signing a QDRO.
Experienced and Skilled Union Family Law Attorney in New Jersey Division of Retirement Assets
Every family is unique, with its own financial concerns. If you have retirement assets and will be going through the divorce process, contact John B. D’Alessandro. Attorney D’Alessandro dedicates the majority of his practice to family law and works with clients in Union, Elizabeth, Newark, New Brunswick, Woodbridge, Summit, and communities throughout Union, Middlesex and Essex counties.