For many New Jersey residents, one of the more difficult parts of the divorce process is deciding how to divide the marital property, assets and debts. Splitting one household into two is no easy task, and many people tend to be more concerned about the immediate effects of divorce rather than the potential long-term consequences. For example, many people who are going through a divorce are concerned about housing, medical insurance and access to joint checking accounts.

Those concerns are all very valid, however it is important that anyone who is divorcing also considers their long-term financial needs–this includes current and future earning potential, retirement accounts and investments.

Most married couples save for retirement together, and because retirement can seem so distant, many divorcing spouses fail to ensure they exit the marriage with their fair share of retirement assets.

According to ING, divorced people have an average of $10,000 less in retirement accounts than married people even though the divorced people surveyed were about five years closer to retirement than the married respondents.

So, while many people feel an urge to fight for the family home and alimony in divorce settlement negotiations, it is important to think about pension plans and 401(k) accounts when divvying up assets.

If one does receive pension plan or 401(k) funds in a divorce settlement, it is also important to ensure that these accounts are in that person’s name. Often, with 401(k)s, people are wise to put the money into an IRA.

This area of property division is very complicated, particularly for those spouses who did not manage such finances during the marriage. It is important to discuss current and long-term financial goals and plans with one’s family law attorney, who will then look out for those interests during settlement negotiations.

Source: CNN Money, “Rebuild your nest egg after divorce or widowhood,” Beth Braverman, Donna Rosato and Penelope Wang, Feb. 18, 2013

• To learn more about splitting up assets and debts during divorce, please visit our Kingston family law firm’s Property Division page.