While assets may be split equally in a New Jersey divorce, NJ is not a 50/50 state. Depending on the details of the relationship and each spouse’s financial situation, an equal division of property may be considered fair. However, that is not the default decision. For more information on your rights and options during your divorce, work with a knowledgeable Bergen County property division lawyer.
Are Assets Split 50/50 in a New Jersey Divorce?
When a couple decides to get divorced in New Jersey, assets may be split between them 50/50, but that is not the standard. In a community property state, any assets acquired during the marriage are considered to be equally owned by both spouses. This means that during a divorce the property must be split down the middle, regardless of the personal circumstances of the couple or relationship.
New Jersey, however, is not a community property state. Therefore, an equal split is not the default way to divide property.
What is an Equitable Distribution State?
New Jersey is an equitable distribution state when it comes to property division during a divorce. In an equitable distribution state, after determining which property is jointly owned, a court will divide all marital assets based on a fair and equitable split.
The distribution is not based on equality but rather equitability. NJ courts consider a variety of factors when determining an equitable distribution of assets, including the following.
- Each spouse’s financial situation
- Each spouse’s income
- Each spouse’s earning capacity
- Each spouse’s age
- Each spouse’s physical and mental health
- Whether the spouses share minor children
- The length of the marriage
- Each spouse’s contributions to the marriage
- Prenuptial or postnuptial agreements
New Jersey courts strive to ensure that a divorce is not significantly financially detrimental to either party and equitable distribution helps make that happen. For example, during a divorce, one spouse may make a significantly higher income than the other. They should not be punished for making more money, however, it is important to consider how and why they have that earning capacity. Did the other spouse work to support them while they attended higher education? Did the other spouse sacrifice their career to raise their shared children so their partner could remain in the workforce? Equitable distribution allows a court to consider these nuanced aspects of a relationship and ensures that the spouse with the lower income or earning capacity does not suffer any undue hardship.
During a divorce, it is crucial that you have a strong understanding of your legal rights and options. You are entitled to a portion of your marital assets and responsible for a portion of your marital debts. Reach out to a skilled attorney to obtain representation and ensure your legal rights are protected during your divorce.
