Pensions, IRAs, 401ks or any other retirement account are subject to equitable distribution in the state of New Jersey. The general rule is that you will be entitled to half of the funds that accrued during the marriage. It is important to understand these accounts and how they were handled during the marriage. If you or your spouse had a retirement account prior to the marriage and stopped contributing to it during the marriage for whatever reason, it may not be subject to distribution.
The term or time frame, "during the marriage" under New Jersey law generally is the date you were married and the date you or your spouse filed the complaint for divorce. Therefore, when you are trying to calculate how much of the retirement account you may be entitled to, you should not look at when the divorce was finalized. Often times, a divorce action will take up to one year to complete and you will not be entitled to any increase in the account during the time the divorce was pending.
There is also an important distinction under New Jersey law depending on the status of the account. For example, if you or your spouse is currently drawing on a pension it may be considered income as opposed to an asset. If the account is considered income as opposed to an asset, it may be used to calculate any alimony obligation as opposed to a lump sum transfer.
