Retirement Attorney New Jersey
Sometimes retirement assets can be one of the larger assets a couple has. If either party has contributed towards a retirement plan during the marriage, same is considered a marital assert. Further, if you contributed during the marriage towards a pre-existing retirement plan that may also be subject to equitable distribution under New Jersey law.
When determining the equitable distribution of a retirement plan, the type of plan and whether it is in pay status may affect the way it is distributed.
This can be a very complex issue. It is important to hire a competent NJ Attorney who specializes in distribution of parties retirement plans in order to avoid tax consequences of said distribution.
Typically there are two types of plans.
- Defined Benefit Plans. These are typically pension that pay out a monthly amount when you retired based on various factors. These are typically divided by way of a deferred distribution method, whereby it gets divided when the benefit begins to be paid. The marital portion you may be entitled to is defined by the marital coverture fraction, wherein the numerator is the months of the marriage and the denominator will be the months that the spouse was a participant in the plan.
- Defined Contribution Plans: These typically can be divided by rolling over a certain amount from one spouse to another on a tax-free basis. Typically IRA’s can be divided in this fashion. Other retirement plans will required a Qualified Domestic Relations Order (commonly referred to as QDRO) which allows one party to receive their coverture portion on a tax free basis following a divorce.
Nothing contained herein should be construed as tax advice. If you are concerned regarding your retirement asserts, you should speak to an experience New Jersey retirement lawyer at The Law Office of Regan A Barbetti. Call us at 732-800-1169.
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For the customized legal representation you need for your Retirement case, please contact us today. Our firm understands that each case is different, which is why we are always guided by the uniquely personal issues of each client and the various economic factors that exist.