Insights Archives — Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events

Estate Planning After Divorce: Revisit Your Beneficiary Designations or Your Estate Could Pay the Consequences

Published on: February 19, 2026 | by Elizabeth Engert Manzo and Meghan Lawlor

Many people direct the disposition of their bank accounts, investments, retirement accounts and life insurance upon their death by designating beneficiaries of those assets. When an asset passes by beneficiary designation, otherwise called a pay-on-death provision, it becomes a non-probate asset and therefore passes outside of a person’s probate estate.

In New Jersey, New York, and Pennsylvania, among other states, a divorce automatically revokes any provisions in a will which benefit a former spouse, unless the will expressly states otherwise. Similarly, New Jersey statute 3B:3-14 provides that a divorce revokes any revocable appointment directing the disposition of property – such as a beneficiary designation – to a former spouse unless the governing instrument, court order, or divorce agreement dividing marital assets expressly states otherwise.

This year, the New Jersey Supreme Court considered whether a decedent’s pay-on-death provision on his U.S. savings bonds survived his divorce and satisfied the terms of his divorce settlement agreement (“DSA”). The decedent, Michael Jones (“Michael”), bought Series EE U.S. savings bonds while married to Jeanine Jones (“Jeanine”) and named her as the pay-on-death beneficiary of the bonds. When Michael and Jeanine divorced in 2018, the DSA required Michael to pay Jeanine $200,000 over time and also stated that any marital asset not specifically listed in the DSA “belong[ed] to the party who ha[d] it currently in their possession.” The DSA did not explicitly mention the savings bonds.

Timely Mailing May Not Be Timely Filing – Change to U.S. Postal Service Rules

Published on: February 19, 2026 | by Anne Marie Robbins

On November 24, 2025, the U.S. Postal Service (“USPS”) finalized a rule regarding when and how postmarks are applied. See 39 C.F.R. § 111 (2025). It is important for taxpayers and their advisors to be aware of the change because it has an impact on proving that a document was filed. While the rule does not change how mail is processed, it does change how postmarks should be understood, especially when deadlines matter.

What Changed?

While postmarks have long been relied upon as evidence that a document was mailed on a certain date, the new rule makes clear that this assumption is not always accurate. In most cases, postmarks are applied by automated machines at regional processing facilities, and not at the local post office where a piece of mail is dropped off. As a result, the date printed on a postmark may reflect the date the piece was first processed—not the date it was actually placed in the mail or collected by the USPS.

FinCEN Residential Real Estate Reporting Rule – Effective March 1, 2026

Published on: February 18, 2026 | by Kelsey Gorman

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN’) has postponed the compliance date for its “Residential Real Estate Reporting Rule” to March 1, 2026. The rule is designed to increase transparency in the U.S. residential real estate market and to combat money laundering. Starting March 1, 2026, real estate transactions that qualify as a “reportable transfer” will need to comply with FinCEN’s reporting requirements.

What is a “Reportable Transfer”?

A ‘”reportable transfer” occurs when all of the following criteria are met:

Do Most Divorce Cases Go to Trial in New Jersey?

Published on: February 16, 2026 | by James McGlew, II

Many people contemplating divorce assume that to separate from their spouse they will need to participate in a courtroom trial. The thought of a “divorce trial” is often reinforced by television, social media, and stories passed down from prior generations. In reality this is no longer how divorce works in New Jersey today.

Over the past several decades, particularly since the 1980s and through significant procedural and statutory reforms in the 2000s and 2010s, New Jersey’s family court system has shifted away from routine trials. Courts now place strong emphasis on settlement, structured negotiation, and practical resolution.

Understanding this reality can help to reduce a divorce client’s anxiety and help them approach the divorce process with clearer expectations.

Federal Transfer Tax Exemptions for 2026

Published on: February 11, 2026 | by Anne Marie Robbins

As a result of the 2025 tax legislation passed in July of last year, there has been a significant increase in the estate, gift, and generation-skipping transfer tax exemptions to $15 million effective January 1.

The increase means that in 2026, an individual may make gifts during life or at death totaling $15 million without incurring gift or estate tax, and a married couple will be able to transfer $30 million of assets free of transfer taxes.

The annual gift tax exclusion provided by Code section 2503 remains at $19,000 per donee (or $38,000 if spouses elect gift-splitting).

Common Divorce Myths in New Jersey: What the Law Really Says

Published on: February 2, 2026 | by James McGlew, II

When someone is considering divorce, misinformation often creates unnecessary fear. Social media, online forums, and well-meaning friends frequently repeat outdated or incorrect assumptions about how divorce works in New Jersey. The result is confusion, increased anxiety, and poor decision-making at a time when clarity matters most.

Over the past several decades, particularly since the 1980s and accelerating through statutory reforms in the 2000s and 2010s, New Jersey divorce law has evolved significantly. For people in their 30s, 40s, and early 50s, much of what they “know” about divorce is often based on how divorces worked for their parents or grandparents. Courts today place far greater emphasis on settlement, fairness, and practical outcomes, rather than rigid rules or outdated assumptions. Yet many myths persist, often making an already difficult process more stressful than necessary.

Below are some of the most common misunderstandings and what New Jersey law actually requires.

New Jersey Employment Law Update for 2026

Published on: January 29, 2026 | by Joshua L. Weiner, Gozde Celik and Ashlin Miller

As tends to happen at the end of a Governor’s term in office, a bevy of bills were signed into law this month by outgoing Governor Phil Murphy. Among them were two that have the potential to change the landscape of employment law in New Jersey.

Amendments to the NJ Family Leave Act

On January 17, 2026, a bill was signed into law amending New Jersey Family Leave Act (NJFLA) that will greatly increase the number of employees entitled to its protections. The amendments, which take effect July 17, 2026, broaden the scope of employers subject to the statute and lower the eligibility thresholds for employees.

2026 Employment Law Update: Key Developments Affecting Compliance in the Workplace

Published on: January 20, 2026 | by Lisa Gingeleskie, Joshua L. Weiner and Gozde Celik

As we enter into 2026, a number of state, local, and federal employment law changes are taking effect which impact employer compliance and expand employee rights. These developments create new obligations that employers should be aware of as they review workplace postings, leave policies, hiring practices, scheduling procedures, and anti-discrimination safeguards for the year ahead.

New Jersey

Updated Family Leave Insurance Posting

New Jersey Minimum Wage Increase Reminder

Published on: January 2, 2026 | by Ashlin Miller and Joshua L. Weiner

New Jersey employers are reminded that the state minimum wage will increase again in 2026 in accordance with the New Jersey Minimum Wage Act, which requires the New Jersey Department of Labor and Workforce Development to set the statewide minimum wage each year based on any increase in the Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics. Effective January 1, 2026, New Jersey’s statewide minimum wage will increase from $15.49 to $15.92 per hour for most employees. For small employers (those with fewer than 6 employees), the minimum wage increases from $14.53 to $15.23 per hour.

As the new year approaches, employers should take steps to prepare for the wage increase by reviewing and updating current pay rates so that they reflect the updated CPI-adjusted minimum wage.

NJ Ruling Allows Employees to Keep Most Workplace Claims Out of Arbitration

Published on: January 2, 2026 | by Ashlin Miller and Joshua L. Weiner

On December 26, 2025, the New Jersey Appellate Division determined that sexual harassment claims, if plausibly pled, could keep an entire employment lawsuit out of arbitration, including any non-sexual harassment claims asserted by a plaintiff. In the consolidated cases of McDermott v. Guaranteed Rate, Inc. and Rivera-Santana v. CJF Shipping, LLC, the Court addressed the scope of the federal Ending Forced Arbitration of Sexual Assault and Harassment Act of 2021 (EFAA), which prevents employers from forcing employees into private arbitration for claims of sexual assault or harassment. The Court determined that if an employment lawsuit includes a viable sexual harassment claim, any pre-dispute arbitration agreement is unenforceable not just as to the sexual harassment claim, but any non-sexual harassment claim that the plaintiff included as part of the lawsuit.

Both cases involved a multiclaim employment dispute filed by former employees. The trial court had originally ordered the parties to arbitrate all the non-sexual harassment claims asserted by the plaintiff under the terms of an arbitration agreement but found the arbitration agreement unenforceable as to plaintiff’s sexual harassment claim which the court permitted to proceed separately in court. The Appellate Division reversed in both cases, holding that courts are prevented from bifurcating the sexual harassment and non-sexual harassment claims. The Court reasoned that the language of the EFAA renders pre-dispute arbitration agreements unenforceable as to all claims in a multiclaim dispute where a plaintiff has pled a viable claim involving sexual harassment. The decision follows the approach of a majority of state and federal courts which have applied the EFAA broadly.

Impact on Employers: