Factors to Consider When Reviewing a Proposed New Jersey Divorce Settlement Agreement

A New Jersey divorce settlement agreement is more than just a final signature on a stack of papers. A New Jersey divorce settlement is a binding agreement that governs major elements of your post-marriage life. This includes such matters as your financial stability and your parental rights and responsibilities for years to come. Before agreeing to a proposed settlement, it is essential to review it carefully with both a critical eye and professional guidance. There are a number of key factors to bear in mind when you are reviewing a divorce settlement agreement.

Division of Marital Assets

In the Garden State, marital assets are governed by what is known as the equitable division of property standard. Equitable does not always mean equal pursuant to New Jersey divorce law. Rather, it means fair under the circumstances. You’ll want to confirm that all assets have been disclosed and properly valued, including real estate, bank accounts, investments, business interests, retirement accounts, and valuable personal property. You will also need to ensure that the settlement specifies exactly how and when these assets will be transferred to you.

Debt Allocation

On a related note, debts must also be equitably assigned in a settlement agreement. This includes mortgages, credit card balances, car loans, and any personal loans. Keep in mind that even if your ex-spouse agrees to pay certain debts, creditors may still hold you legally responsible if your name is on the account. The settlement should include clear provisions for who pays which debts, how debts will be refinanced or paid off, and a timeline for those actions to protect your credit.

Spousal Support or Alimony

If spousal support or alimony is part of your settlement, consider both the amount and the duration of payments. In this regard, you need to analyze whether alimony is sufficient to help you transition financially after divorce. On the other hand, if you are paying alimony, assess whether the obligation is realistic and sustainable into the future

Child Custody and Parenting Time

If you have children, custody arrangements are often the most sensitive and emotionally charged part of a New Jersey divorce settlement agreement. With this note, you will want to closely consider whether the proposed parenting plan reflects the best interests of your children and accommodates their school schedules, extracurricular activities, and emotional needs. Ensure the agreement clearly outlines residential custody, visitation schedules, holiday arrangements, and how changes will be handled if one parent moves or circumstances change.

Child Support

Child support should be calculated based on the New Jersey child support guidelines (unless there is a bona fide reason to depart from those guidelines in one way or another).As part of this review, you must confirm that child support meets your children’s needs and will be enforceable not only at this time but into the future. Make sure you consider that the agreement addresses cost-sharing for medical expenses, extracurricular activities, and education.

Retirement Accounts and Pensions

Retirement savings are oftentimes one of the most significant marital assets. Dividing them may require a Qualified Domestic Relations Order (QDRO) or similar legal instrument. Without proper handling, you risk unnecessary taxes, penalties, or even losing your entitlement. As part of the review process, you need to confirm that the settlement document outlines exactly how retirement benefits will be divided and whether survivor benefits or cost-of-living adjustments are included for pensions.

Insurance Coverage

Insurance coverage cannot be an afterthought. The stark reality is that a New Jersey marriage dissolution case can disrupt health, life, and property insurance arrangements. If you’ve been on your spouse’s health plan, you may need to arrange COBRA coverage or secure a new policy. The settlement should specify who is responsible for maintaining health insurance for the children, as well as life insurance to secure future support obligations.

Enforcement and Modification Provisions

Finally, a New Jersey divorce settlement agreement needs to contemplate changes that can reasonably be expected to occur in the future. Your settlement should anticipate these realities by including provisions for modification and enforcement. Make sure your New Jersey divorce settlement agreement explains how disputes will be resolved—whether through mediation, arbitration, or court and under what conditions the settlement can be changed. This can save you time, money, and stress if circumstances change down the road. If you have questions concerning divorce settlement agreements, call the Law Offices of Peter Van Aulen at 201-845-7400 for a free consultation.