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At the time of divorce or dissolution of marriage, plan benefits may be divided between the participant or member and that person’s spouse. In order to effectuate a division of the pension benefits in the state of New Jersey, a Qualified Domestic Relations Order (QDRO or DRO) must be prepared and submitted to the Plan Administrator. The Orders generated by our online service are specific to each System or Plan.
(all QDROs are $299)
In New Jersey vested pensions are marital property. A pension vests when all the requirements to receive the pension have been met. Unvested pensions are also marital property. Until the pension has vested, the person under whom the pension is maintained has only an expectancy of interest in the pension.
Several different methods of valuation are used in determining how much a marital asset is worth, depending upon the asset to be valued and the level of agreement between the parties. Courts generally accept the value when the spouses mutually agree on a value of a particular asset. Experts may be retained by the parties or by the courts to determine the value of marital assets if the parties cannot agree. Such experts may include accountants, real estate or business appraisers, or pension valuators. The use of experts adds to the cost of the divorce.
In New Jersey the court may include the retirement benefits and plans earned by both spouses as marital assets available for division. Retirement benefits vary greatly but can generally be divided into two groups:
