State divorce laws will also determine how funds from a retirement account, like a 401(k) plan, will be distributed. For example, all marital assets are automatically split 50-50 in community property states. New Jersey is an equitable distribution state, which means that the funds will be distributed in a manner deemed fair but necessarily equal. A judge will consider a range of factors when making this decision, including your financial situation, the length of your marriage, and your ability to earn an income.