Deciding to divorce is no small matter. In fact, it might be one of the most significant decisions you make in a lifetime. As a parent, your children's best interests are no doubt one of your highest priorities. Another important topic, however, and one that can affect your kids, is property division.
Great care is required when dividing property during a divorce. Shifts in the law often impact the way couples need to approach divorce as well.
In many divorces, property division is a technical and involved process that requires careful cataloging, assessment and appraisal of assets. The goal, under New Jersey law, is to ensure that both spouses receive an equitable distribution (but not always equal distribution) of the marital assets.
For many New Jersey spouses going through the divorce process, getting a fresh start is important. However, others feel a need to remain connected with the past. Exactly how the family home is viewed and ultimately awarded as an asset to one of the parties becomes a major issue in the final property division settlement. This is especially true when minor children are involved.
Couples seldom exchange vows in New Jersey with the assumption that they will divorce later. However, the rate of divorce in the United States is roughly 50 percent. For many of these divorcing couples, the family home is their biggest marital asset. Soon-to-be exes have three options for dealing with real estate when they divorce.
When New Jersey couples get divorced, they may have credit card debt to divide. This can get complicated because each ex will be obligated to pay any credit card debt that is in their name. While the two soon-to-be exes are bound by the terms of the divorce agreement, the credit card company is not.
New Jersey couples going through divorce are likely to have disputes over how their assets will be divided. Thanks to the increased popularity of cryptocurrency, a growing number of divorcing couples will have even more to consider during the property division process. Dealing with cryptocurrency assets can make the divorce process much more difficult and time-consuming.
Tax returns, pay stubs, and other financial records may provide clues for people in New Jersey who are concerned about a spouse having an affair or hiding assets during a divorce. Changes in spending habits or movement of money around accounts could indicate an attempt to conceal something.
A New Jersey couple going through a divorce may need to split a 401(k) account. To do this, either the couple or a judge will need to decide how the funds will be allocated. The division may not necessarily be 50/50. Next, the couple will need a document called a qualified domestic relations order. This allows a distribution to be made from the plan following divorce without incurring a penalty. However, the people need to be younger than 59.5 and the QDRO must be forwarded to a plan administrator for approval.
Determining whether or not to keep the family home can be one of the biggest decisions a former New Jersey couple may have to make during a divorce. While many former spouses want to keep the family home, especially if there are children involved, there are a few factors that the former couple should consider before making a final decision.