family law

Retirement Assets and Divorce in New Jersey

Published on: April 27, 2020 | Skoloff & Wolfe

Couple Discussing Retirement Assets for Divorce — Skoloff Wolfe lawyers attorneys
Retirement funds are often among the most valuable assets a divorcing couple owns, although before retirement they are often not given a whole lot of thought. How they are treated is one of the most important considerations to be dealt with in a divorce case, and in order to do that, the rules of the road need to be understood by both attorney and client. How such funds are distributed may be one of the most consequential decisions to be made in the divorce process, and there is a lot to know.

Understand the Different Types of Retirement Accounts that are Considered in a Divorce

In order to know what to do with retirement assets, it is important to first understand what it is that you, or your spouse, own. Basically, there are two styles of retirement plan: the defined benefit plan, which guarantees the owner an income stream in a predetermined amount each month, starting from a fixed age through the end of the pensioner’s life; and the defined contribution plan, which has a fixed value at any given point in time, just like a bank or brokerage account. Defined contribution plans are usually in one of two forms: the 401(k) account, which is funded by withholdings from an employee’s paycheck and contributions from his or her employer; and the Individual Retirement Account (“IRA”), which is either funded with a worker’s savings, “rolled over” from a 401(k) with a prior employer, or both. There may be multiple accounts if the person has had multiple employers. A person going through a divorce needs to be certain to know how many accounts they and their spouse have, and what kinds of accounts they are.

Divorce and the Family Business

Published on: April 22, 2020 | Skoloff & Wolfe

A couple who owns a family business together going through a divorce
A family business is typically a closely held corporation—a business which is not publicly traded and for which there is no open market. Where the interest was purchased during the marriage, its value will be subject to division in the divorce. The major question which presents itself, however, is how will the value be determined.

Determining Fair Value of a Business During a Divorce

Brown v. Brown, 348 N.J. Super. 466 (App. Div. 2002) determined that the governing standard of value to be applied is “fair value,” and not “fair market value.” Fair market value is the amount at which property would change hands between a willing seller and a willing buyer when neither is acting under compulsion and when both have reasonable knowledge of the relevant facts. Fair market value takes into consideration a discount for lack of marketability or liquidity which is a discount based on the inability to sell an ownership interest in a business. Fair market value also takes into consideration a minority interest discount which is a reduction in value due to the lack of control which can be exercised by an owner with only a minority interest.

Parenting Time Exchanges During the Covid-19 Pandemic: A Practical Guide for Separated & Divorced Parents

Published on: March 25, 2020 | Skoloff & Wolfe

By: Thomas DeCataldo

Divorced parents COVID-19
The ongoing Covid-19 pandemic has caused the tragic loss of life and spurred international panic. Adding insult to injury, the economic impact of this health crisis has thus far been devastating, with stock markets collapsing and many struggling to keep businesses afloat while being unable to work or attempting to do so remotely. As a result of the tumult caused by this virus, divorcing couples and separated parents find themselves attempting to cope with several accelerants to an already stressful situation.

Against this backdrop, in recent weeks many parents questioned the impact of the Covid-19 pandemic on custody and parenting time arrangements, whether entered formally as Court Orders or informally by agreement of the parties. The pandemic presents many hotbed areas for disagreement among separated or separating parents, particularly for those in high-conflict situations.