Law Offices of David T. Garnes, LLC

Schedule Your Free Consultation

(856)324-4593 | (267)838-9713

contact Menu

Ways to simplify asset distribution in a divorce

Another year is about to begin, and the new year may mean a divorce for many couples in New Jersey. More people typically file for divorce in January than in any other month. Another issue that typically comes to the fore in January concerns taxes and personal finances in general. When divorce and taxes are combined, frequent questions involve who is entitled to what assets and how taxes will be implicated?

Many people have a significant portion of their financial assets in 401(k) accounts. Amounts contributed to those accounts are typically considered marital property and are subject to asset division in a divorce procedure. If a prenuptial agreement exists, this may dictate the split of these assets. New Jersey is an equitable distribution state, which means that assets are not automatically subject to a 50/50 split.

Another concern regarding 401(k) splits may be how to avoid the early withdrawal penalties. A Qualified Domestic Relations Order (QDRO) issued by the court allows an employer to move funds between the parties without incurring any penalties. Any possible tax liability is also avoided. The biggest tax change to be aware of is that alimony is no longer taxable to the recipient since the passage of the Tax Cut and Jobs Act of 2017. The alimony piece of the law went into effect Jan. 1, 2019.

There are many financial issues to be addressed in a divorce in New Jersey. It is beneficial if a couple can come to an agreement on the division of assets, as this can save them time and money. Consulting with an experienced family law attorney can also provide a second set of eyes to help ensure that all bases have been covered.

No Comments

Leave a comment
Comment Information
  • Excellent Attorney

    “I have used David Garnes on many occasions for multiple matters. He has assisted me for about 4 years and I will continue to seek his counsel as the need arise. His office is both very professional and attentive.”

    Matthew R. 2/12/15
  • I highly recommend Mr. Garnes

    “Mr. Garnes was such an amazing attorney, and he has an amazing staff! Mr. Garnes was truly there for me during my time of need. He truly gets the job done, and was available for me on both nights and weekends! ”

    B B. 2/12/15
  • Awesome

    “ Mr. Garnes was just great. He help change my life for the better. Thanks again”

    B B. 2/12/15
Email Us For a Response

How can we help you?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy


Cherry Hill Office
3 Executive Campus
2370 Marlton Pike West
Suite 255
Cherry Hill, NJ 08002

Phone: 856-324-4593
Fax: 856-282-1159
Map & Directions

Philadelphia Office
One Liberty Place
1650 Market Street
36th Floor
Philadelphia, PA 19103

Phone: 267-838-9713
Philadelphia Law Office Map

Review Us
map map