The divorce process is often full of uncertainty, especially when it comes to what will happen to your home, savings, retirement accounts, and personal property. In New Jersey, property division is governed by equitable distribution, and understanding how this system works is crucial for protecting your financial future. Our experienced family law attorneys can guide you through the complexities of equitable distribution to help you secure a fair outcome for your divorce. Reach out to a knowledgeable Bergen County property division lawyer for more information and legal assistance today.
What is Considered Marital Property?
Marital property generally includes all assets that either spouse acquired during the marriage. This often means from the date of the wedding up until the date the divorce complaint was filed. Examples of marital assets commonly include:
- A house purchased during the marriage
- Bank accounts containing marital income
- Vehicles purchased during the marriage
- Retirement contributions made during the marriage
- Investment accounts and gains earned during the marriage
On the other hand, separate property typically includes assets one spouse had before the marriage, or that one spouse received during the marriage as a gift or inheritance. Separate property is usually exempt from equitable distribution. However, if separate property becomes commingled with marital assets or appreciates in value due to the efforts of either spouse during the marriage, that appreciation may be considered a marital asset.
What Property Division System Does NJ Use?
New Jersey operates under an equitable distribution system when it comes to dividing marital assets and debts during a divorce. Equitable distribution does not automatically mean an equal 50/50 split. Instead, it means the court tries to divide the marital estate in a manner that is fair and just, considering the unique circumstances of the marriage. The court’s main goal is to achieve an outcome that is financially equitable based on New Jersey law.
Spouses are highly encouraged to create their own agreement regarding property distribution, which is often done through mediation. However, some couples simply cannot agree on all aspects. In that case, the judge decides property division under equitable distribution.
During equitable distribution, courts will identify marital versus separate property, value assets and debts, and divide them in a way that is fair. There are several factors that can be used to decide fairness.
How is Equitable Distribution Determined?
When spouses cannot agree on a property settlement, the court will determine a fair division by evaluating a variety of factors specific to the relationship. These factors guide the judge in deciding what constitutes an equitable distribution, rather than equal.
Important factors include the length of the marriage, the age and health of each spouse, their income and earning capacities, and the standard of living established during the marriage. The court also considers any prenuptial agreement, financial and non-financial contributions of each party to the marriage, and may also consider practical factors involving children (such as stability and housing), depending on the circumstances. The court considers the overall picture to create a fair settlement.
To secure the help of an experienced attorney during your divorce, contact Feitlin, Youngman, Karas & Gerson, LLC today.
