Splitting the 401K

If either you or your spouse has a 401K or other type of retirement account, you may be wondering how it is typically split in a New Jersey divorce. It is important to know that such an account is subject to New Jersey's equitable distribution statute.

This means that the value accumulated from the date of marriage to the date of filing the Complaint for Divorce is subject to division. For example, if your spouse has a 401K account with $100,000.00 invested, you, as the non-retirement account holder, are likely entitled to half of that value, assuming all funds were deposited during the course of the marriage.

Additionally, a divorcing spouse is entitled to the passive appreciation or depreciation associated with their portion of the account from the date the divorce is finalized until the account is distributed.

Help From Certified Divorce Planners & Financial Analysts

The division of a 401K and other aspects of equitable distribution are integral parts of a divorce proceeding. The attorneys at Villani & DeLuca are intimately familiar with the division of these types of accounts.

Our divorce lawyers work closely with Certified Divorce Planners, also known as Certified Divorce Financial Analysts (CDFA), in assessing all aspects of a client's financial future on a post-divorce basis. By utilizing the services of a CDFA, you will be presented with a clear view of your financial future.

These financial professionals are trained to help clients avoid the long-term financial pitfalls that can be associated with divorce agreements. They are also experts at helping individuals develop a detailed budget to avoid post-divorce financial difficulties.

The attorneys at Villani & DeLuca have found that CDFAs are very helpful in forecasting the long-term effects of various settlement scenarios, including tax liabilities and related concerns.

A good lawyer knows his or her limitations. A financial professional typically has more knowledge when it comes to 401Ks and various other types of retirement plans. Some attorneys do not invest the time and effort required to ensure that a divorce settlement is fair and equitable on a long-term basis.

The importance of planning for your financial future cannot be overstated. You do not get a second chance in a divorce settlement. It is essential that you carefully consider all aspects of a settlement with not only an attorney and a tax professional, but also a Certified Divorce Financial Analyst.

Contact an Experienced NJ Divorce Lawyer

If you have any questions about investments or financial planning as they relate to your New Jersey divorce, call the divorce lawyers of Villani & DeLuca today.

If you would like advice on how to approach your spouse about divorce, or about the divorce process in general, call us for a free, no obligation consultation at (732) 709-7757.

To learn more about divorce in New Jersey, visit our NJ Divorce Resource Center for helpful information and guidance.