The Role of Financial Advisers in a New Jersey Divorce. When the parties must divide retirement accounts, including 401ks, 403bs, annuities, IRAs or pensions, they may wish to involve their financial adviser to do so. A financial adviser or accountant should be able to equalize the values of these assets and determine the amount of monies necessary for one party to roll-over into a roll-over IRA for the other in order to equalize values. If a party with tax deferred monies is going to roll-over money to the other party, for equitable distribution of an asset that is valued in after tax dollars, example, the equity in a marital residence, generally, to do so, an effective tax rate for the party receiving the money must be determined. The party rolling over the money to the other party then has to roll over enough money to cover what will be the effective tax rate of the other party on the monies they are receiving. By way of example, if the equity in a marital residence is $200,000 and each party is to receive $100,000 in equity from the marital residence, and the party receivng the monies from the roll over will have an effective tax rate on the tax deferred dollars being rolled over to them of 25%, the party rolling over money would have to roll over $133,000 to the other party to take into account that these are tax deferred dollars being rolled over for what are after tax dollars. If you have a question as to the equitable distribution of your tax deferred accounts, call Green & Associates at 732-390-0480 or 201-242-1119 for a free consultation in our East Brunswick divorce or Fort Lee divorce offices with our NJ divorce lawyer or NJ divorce attorney for your NJ divorce.
Nov 1, 2016 @ 07:00 AM — by Michael Green