When couples file for divorce, certain issues need to be resolved before they part ways. These issues can involve child custody, child support, alimony and the division of assets. The division of assets can be complicated due to the number of possessions and the value of them. Some couples may have a high net worth or just one spouse which can further complicate the matter. Other couples may have a prenuptial or postnuptial agreement in place that has already decided some of the assets that are in control of one particular spouse. When it comes to dividing the assets between both spouses, they will need to be deemed marital property or exempt property.
Exempt property is acquired before the marriage between the two individuals was made official. Assets and debts that were acquired by these individuals before their marriage was made legal are not subject to division. However, marital property can be brought into the division. This property is acquired during the marriage of the couple.
How is equitable distribution used to separate the property?
In New Jersey state, judges practice equitable distribution to divide assets during divorce. Through equitable distribution, assets are distributed to each spouse in a fair and just manner. This does not mean equal though. It is at the judge’s discretion to decide how the assets are divided.
Judges will take into consideration a few factors when deciding how to dole out possessions. These factors can include the duration of the marriage, the value of the property, the acquisition of the assets, age and health, contribution to the marital property, economic circumstance, possible tax consequences and debts and liabilities. With all these factors to consider, then the judge will make a decision on what is deemed to be a fair allocation.
Can mediation decide this?
If couples decide to go through divorce mediation, they can divide their assets. They can meet with a third party mediator to guide the conversation. In this atmosphere, the individuals may be able to acquire possessions that they value. Since a judge is not the one making the decisions, it may result in a more favorable outcome. However, mediation is not for everyone since it requires the cooperation of both parties.
Paris P. Eliades Law Firm, LLC is honored to serve the people of New Jersey, including Sparta, Sussex County, Morris County, Passaic County, and Bergen County with the quality legal services they deserve. Contact our firm for a consultation today.