“Gray divorces,” or divorces between parties age 50 and older, are rising throughout the United States. Instead of child custody being a significant issue in this type of divorce, these couples’ primary disputes may focus more on marital assets.
Commingled savings are typically subject to equitable distribution in a New Jersey divorce. However, equitable distribution does not automatically mean a 50/50 split of assets. A Judge will look at several factors before they decide how to allocate the marital assets. In a New Jersey divorce, marital assets may include property you acquired during the marriage as well as investments and savings accounts.
Courts Divide Assets Based on Equitable Principles
Courts closely analyze both spouses’ financial situations before they distribute marital assets. They will consider the couple’s standard of living during the marriage and whether each spouse has the earning capacity in the marriage to save effectively for retirement.
Pensions Are Subject to Division
There are several significant sources of funding that an individual may use for their retirement. Many people do not realize that their spouse may be entitled to a large part of their pension upon retirement. A divorce could significantly impact how much of your retirement you collect.
Retirement Savings Accounts May Be Divided
Another major part of many people’s retirement nest eggs is their employer-sponsored retirement investment account, or 401(k). Your 401(k) may be considered marital property and subject to equitable division in the divorce. However, spouses may be able to keep the money they had in a retirement account prior to their marriage.
Additionally, when spouses have been married for at least 10 years, they may be entitled to receive up to one-half of the other’s Social Security benefits. After a couple has been divorced for two years, an ex-spouse can claim benefits on the other’s earnings—even when the other has not filed for Social Security benefits. However, if an ex-spouse remarries, their right to a portion of the other’s benefits may be terminated.
Somerville Divorce Lawyers at Lepp, Mayrides & Eaton, LLC, Can Help to Protect Your Rights During the Divorce Process
The experienced Somerville divorce lawyers at Lepp, Mayrides & Eaton, LLC, ensure their clients’ rights are protected, whether settlement is reached, or litigation is necessary. Call us at 908-800-7676 or contact us online to schedule a consultation.
Located in Somerville, New Jersey, our attorneys serve clients throughout Central New Jersey, including those in Somerset County, Hunterdon County, Warren County, Morris County, Mercer County, Monmouth County, Union County, and Middlesex County.