One of the most stressful parts of a divorce is the uncertainty of what will happen to your home, savings, retirement, and assets. Many people assume that divorce means a simple 50/50 split, but New Jersey does not necessarily divide property that way in every case. Understanding the system New Jersey uses to divide marital property in a divorce is crucial to protecting your legal rights. Continue reading below for more information. Contact a Sparta property distribution attorney to schedule a consultation with an experienced legal professional today.
How Does NJ Divide Marital Property in a Divorce?
New Jersey is an equitable distribution state when it comes to dividing marital assets. This legal standard does not mean that property is automatically split equally, or 50/50, like in community property states. Instead, the court’s goal is to divide marital property in a manner that is fair under the specific circumstances of the marriage.
Equitable distribution requires the court to identify which assets are subject to distribution, value those assets, and divide them fairly. The court considers numerous factors to achieve this fair, but not necessarily equal, outcome. The objective of this process is a just and fair financial resolution for both parties as they move forward independently.
What Factors Are Considered to Determine Equitable Distribution?
When a New Jersey court decides how to divide marital property fairly, they evaluate many aspects of the marriage and each party’s individual situation. The court reviews the following and more to reach an equitable resolution:
- The duration of the marriage
- The age of both parties
- The physical and emotional health of both parties
- The income or property brought to the marriage by each party
- The standard of living established during the marriage
- Any prenuptial or postnuptial agreements
- The economic circumstances of each party at the time of the divorce
- The income and earning capacity of each party
- The contributions made by each party to the education or earning capacity of the other
These are only some of the many factors that New Jersey courts consider when determining an equitable distribution of marital property. It is important to evaluate a variety of aspects of each party’s life and standing to help the court reach a fair financial outcome based on the marital standard of living and each spouse’s post-divorce circumstances.
What is Considered Marital Property?
Generally, marital property includes any assets acquired during the marriage. Property and assets that one spouse owned prior to the marriage or that they were gifted/inherited during the marriage are considered separate property. However, if separate property was commingled or increased in value due to marital efforts or funds, it could be considered jointly owned.
Common examples of marital assets include:
- The family home
- Bank accounts
- Investment accounts
- Retirement contributions
- Vehicles
- Jewelry, artwork, and personal property
- Business interests
Often, the name on the title or account does not matter. Both spouses may have a claim to the property regardless.
For more information and legal assistance, contact an experienced divorce lawyer today.