Capacity to Contract and New Jersey Divorce Law
Let’s say you and your spouse want a divorce but you don’t want to hire attorneys. The two of you feel that you can draft a reasonable property settlement agreement and work with the county court clerk regarding procedural matters.
Beware of your future. Your ex-spouse may challenge the validity of the property settlement agreement, although it will be difficult. New Jersey Courts have held it is a fundamental principle that “the settlement of litigation ranks high in our public policy.” Jannarone v. W.T. Co., 65 N.J. Super. 476, 168 A.2d72 (App. Div.) certif.. denied, 35 N.J. 61, 171 A.2d 147 (1962).
Courts encourage parties to settle. Therefore, Courts are not likely to overturn agreements entered into by the parties voluntarily.
New Jersey Family Law Blog



A party’s contribution into a 401(k) account and the income generated in a 401(k) are not used in the child support calculation as it is not considered available to the defendant over an extended period of time. The assets are not ordinarily accessible and the party withdrawing from the account would face an exorbinant tax burden for withdrawing money prior to retirement.



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