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Experienced New Jersey Attorney For Dividing Retirement Accounts In Divorce

Getting a divorce is already challenging, and concerns about how to divide retirement accounts can make the process even more daunting. In New Jersey, the division of retirement assets is often a complex task that demands the insight and guidance of seasoned legal counsel.

An experienced property division and divorce lawyer can assist in identifying and valuing retirement assets, ensuring you understand your entitlements under New Jersey law. John A. Patti, Esq., is dedicated to representing your interests, whether through negotiations or court proceedings, for dividing retirement accounts in divorce fairly.

How Do Monmouth County Courts Treat Retirement Accounts In Divorce?

In New Jersey, equitable distribution laws determine which assets are subject to division upon a standard or high-asset divorce. While these laws address a couple’s bank accounts and personal possessions, they also cover various retirement accounts such as 401(k)s, IRAs and pensions.

These assets are typically considered marital property if they were accrued during the marriage and must be divided equitably between spouses.

Options For Retirement Asset Division In New Jersey

There are a few ways to approach retirement account division in divorce. These include:

  • Qualified domestic relations order (QDRO): A legal order allowing the transfer of retirement assets without penalties
  • Direct transfer: Moving funds directly between retirement accounts without cashing out
  • Asset offset: Balancing retirement accounts against other marital property to achieve an equitable division

Each method has its own advantages and complexities, and the best approach depends on your individual situation. However, if handled incorrectly, the division could trigger significant tax penalties, including:

  • Early withdrawal penalties: If retirement account funds are accessed prematurely during the division process
  • Incorrect tax treatment: Transfers without a QDRO may be taxed as distributions
  • Capital gains tax: Improper transfers during divorce may give rise to capital gains tax on appreciated assets

Attorney Patti has amassed substantial experience dividing retirement accounts in divorce. He can help you reach a solution that does not pose severe financial losses or introduce negative tax consequences.

Call Now For Personalized Guidance

For tailored advice and representation in dividing retirement funds in Red Bank and Monmouth County, contact attorney Patti at 732-913-3631 or online today. He can help you secure your future by ensuring a fair division of your retirement assets and other marital property.