Dividing Pension and Retirement Benefits in a Teaneck Divorce
As part of the asset division process, you will need to take care of separating out retirement and pension benefits. Under state law, the division of assets during a divorce should be as equitable as possible. That does not mean that each asset has to be divided equally across the board, but it does mean each spouse should receive a fair share of the assets from the marriage. Dividing pension and retirement benefits in a Teaneck divorce can prove complicated, but a skilled attorney can help you understand your options.
Considerations When Dividing Pension and Retirement Benefits
Dividing pension and retirement benefits during a Teaneck divorce often is not as simple as each spouse taking their own benefits. In some cases, one spouse may have spent considerably more time working than the other or may have had much higher earnings. There also may be situations where a spouse started working in his or her job prior to the marriage. Equitable division of those benefits may mean considering a number of factors.
Each Spouse’s Retirement Accounts and Benefits
If each spouse has had equal time in their career and reasonable income that allowed them to build up their retirement accounts, and/or if the value of each spouse’s retirement accounts is roughly equivalent, the spouses may decide to simply take their own accounts and not worry about future divisions. On the other hand, if there is an obvious disparity between those accounts, the two spouses may need to take a look at other options.
The Length of the Marriage
If the two spouses were married for a short period of time, the non-earning spouse may have the right to fewer retirement or pension benefits than if the marriage lasted for a long time. The spouses may also want to evaluate how much was added to the account during the years of the marriage.
Pension Offsetting
In some cases, the spouses involved in a Teaneck divorce may not want to divide retirement and pension benefits. Pension offsetting occurs when one spouse keeps the pension or other retirement accounts, and the other spouse is granted a high-value item or a higher percentage of another asset in return. For example, there may be equity in a house that is kept in whole or in part by one spouse in exchange for a full or partial waiver of the other spouse’s pension. Likewise, one spouse might keep high-value investments instead of a pension account or retirement benefits.
Working with a lawyer can make it easier for many people to decide whether they should attempt to divide pension and retirement benefits or if they should consider pension offsetting. While retirement benefits can prove immensely valuable in the future, they may not offer the immediate financial support or availability that some spouses need after a divorce. Furthermore, while pension benefits usually remain the same, some spouses may not have anticipated retirement benefits when the time comes to retire. That means they may not receive the security they were hoping for in the future. Each situation is unique, and consulting with a lawyer can make it easier to assess the right decision for each individual situation.
Contact an Attorney in Teaneck to Discuss Dividing Pension and Retirement Benefits During a Divorce
Asset division is a complicated process. Dividing pension and retirement benefits in a Teaneck divorce can prove particularly tricky since it often relies on a future payout. Working with a lawyer can help you protect your future financial needs throughout the divorce process. Contact Moskowitz Law Group to discuss your divorce and the asset division process.
