- Divorce
- Child SupportCan your retirement funds be at risk to pay a judgment? A majority of many people’s assets are held in retirement accounts. The good news is that while some retirement accounts can be subject to a judgment, a majority of retirement accounts are not. Retirement accounts set up under the Employee Benefits Security Administration (ERISA) are protected. A 401(k) plan is an ERISA account. A 401(k) plan takes its name from the section of the Internal Revenue Code of 1978 that created them. A 401(k) plan is funded by employee pre-tax salary contributions and often matching contributions from the employer. Contributions grow tax-free until withdrawn and the funds in these plans are portable, meaning that generally you can take the money with you when you leave your employer, typically by rolling it over into an Individual Retirement Account (IRA) or another 401(k). The exception to this protection from judgments is in the case of divorce decrees or child support orders (QDROs; i.e., qualified domestic relations orders). IRAs like the traditional IRA and the Roth IRA are not covered by ERISA but New Jersey, unlike many other states, does offer protection to these IRA accounts from claims by judgment creditors including garnishments.
- Wrongful TerminationAfter reviewing the employee handbook and the severance contract, go to an attorney, preferably one the focuses on employment law. Having a professional advise you on your specific situation will be worth the consultation fee. Sometimes severance agreements may stop you from bringing future lawsuits against the employer for claims such as employment discrimination, sexual harassment and payments owed such as bonuses so this something also to consider. Other points to consider, aside from payments and the termination date are taxation issues, payment for unused vacation, personal and sick time, agreed language for reference purposes, health insurance benefits, scope of non-competition, non-solicitation and non-disclosure obligations, and consideration of unemployment insurance benefits. Severance contracts can stipulate that the employee will not sue the employer for wrongful termination or attempt to collect unemployment insurance with the consequence that if the employee does so, then the employee must return the severance money – so watch out for this. Depending on what the lawyer recommends for you, you then have to decide whether to have the lawyer or you yourself negotiate the package. This can be a difficult decision and it should be based on what you are comfortable with and what’s at stake. Many people find it difficult to advocate for themselves so having someone speak for you can be worth it. On the other hand keep in mind that if a lawyer writes a letter or contacts the company to negotiate the package, management is likely to forward the matter to corporate counsel who can be more difficult to deal with and your legal fees can mount.
- Employment Discrimination
- Severance AgreementWhat can you do when a company has announced layoffs, but asks you to work for several more months in order to receive a severance package? I plan to stay and make arrangements for new work based on the termination date. I fully understand I can be let go at any time for cause, but absent that, can I protect myself from an earlier-than-anticipated termination?
- Sexual Harassment
- Real Estate LitigationOption three: transfer the timeshare back to the timeshare company. In most cases, the company that sold you the timeshare will not want to take it back, but if you own the timeshare outright with no loan it is possible that the company may agree to take it back. Just be sure they are completely releasing you from all obligations including all maintenance fees, dues etc. If they don’t want to take it back a real estate litigation lawyer can assist you by contacting the timeshare company on your behalf. A letter from a lawyer can be a great motivator. When faced with litigation or the potential of litigation, timeshare companies may in fact either take back their timeshare or simply agree to release the timeshare owner from any future liability in connection with the timeshare contract. Of course the drawback here is that hiring a lawyer costs money and there is no guarantee of success.
- Real Estate TransactionsAnthony J. Vignier, Esq, has been practicing law since 1991. He provides comprehensive legal representation in the following areas of law: Bankruptcy, Real Estate Transactions, Wills, Estate Planning and Probate, and traffic matters.
- Personal InjuryGreat Question! Asset protection considerations are in my opinion one the first steps in a plan for building wealth. America in general and New Jersey in particular is a very litigious place. The more assets people think you have, the more tempting a target you will become in a lawsuit, particularly an automobile accident case. Remember, attorneys who practice personal injury usually are paid on a contingency basis, typically 1/3 of what they are able collect for their client along with the costs and expenses associated with the case which the attorneys usually pay upfront. This means two things, namely cases that are accepted must involve significant damages to their client and ideally they want cases where there are “deep pockets”, meaning there is the potential for immediately collecting big money at the end of the case, usually from an insurance carrier. When insurance is limited or non-existent and a judgment is obtained collecting against the judgment does have its limitations.
- Auto Accidents
- Estate PlanningI have been a practicing attorney since 1991. I focus in the areas of Bankruptcy, Residential and Commercial Real Estate including zoning matters, Wills, Estate Planning and Probate, and traffic matters. When I meet with clients I review their circumstances in total to help them reach a decision regarding the best solution for their situation. So take the first step and get educated on your options and then make your decision. I hope you find this site informative. Please contact me with any feedback – your comments are always welcome. – Anthony
- Wills
- Probate
- Bankruptcy
- ForeclosureI am often asked by my clients who are facing foreclosure how credit score is affected by foreclosure and if a short sale, deed-in-lieu of foreclosure or filing bankruptcy is a better option with regard to the effect on their credit score. First one must keep in mind that there are other issues to consider in addition to how the foreclosure will affect your credit score such as tax consequences from the foreclosure and other factors outside of your credit score that lenders will look at in order to provide you with loans and financing in the future.
- Tax LawSecond, when advising someone on a debt payment plan several factors must be considered such as determining their annual income and expenses, whether the individual has an established emergency fund, reviewing other outstanding debt such as credit cards or auto loans that may have higher interest rates, funding a retirement plan, if possible, and taking into consideration tax issues such as the student loan interest deduction. Keeping in mind that even with the best current savings rates averaging 0.80 (that’s less than 1% per year) the best use of your money is to pay down higher interest debt such as this student loan and apply any available extra funds to paying down the principal. In almost all debt situations you want to apply extra payments to the principal not the interest. Prepayment of the principal saves money because subsequent monthly payments will further reduce the principal regardless if an extra payment is made in the future. Prepayment of the principal also reduces the total interest that you will pay over time.