When couples decide to dissolve their marriage, property division is one of the most hotly contested issues. Couples frequently disagree on how to split their assets, leading to disputes that often require court intervention to resolve. Please continue reading to learn how assets are divided in a New Jersey divorce and why connecting with our Edison Property Division Lawyers is in your best interest.
How Are Assets Split in a New Jersey Divorce?
When spouses cannot come to an agreement about property division, the court will need to intervene and issue a decision. Generally, there are two property division models states follow: community property and equitable distribution. Many wrongly assume that assets are split evenly during a divorce. However, this is not the case in New Jersey. New Jersey is an equitable distribution state. This means marital property is distributed fairly, based on each spouse’s financial and domestic contributions to the marriage, rather than divided equally like in a community property state. The court will examine several factors to determine a just distribution of marital assets between spouses. These factors include:
- The duration of the marriage
- The age and health of each spouse
- The income and earning potential of each spouse
- The economic circumstances of each spouse
- The standard of living during the marriage
- Non-monetary contributions to the family
- How long one party has been out of the workforce
- How long it would take for the party to obtain an education or training that will allow them to become self-supporting
- Whether one spouse sacrificed their career or put aside their education to help the other party achieve a greater income
- Each spouse’s debts and liabilities
- Any tax consequences
This is an extensive list of factors, but it’s not exclusive. It’s important to understand that New Jersey courts have the discretion to consider any factor they deem relevant to the circumstances of an individual case. In addition, judges normally don’t consider marital fault when making this determination. However, there are exceptions. If one spouse has wasted or dissipated marital assets or has otherwise engaged in egregious behavior, the court can consider the marital fault to determine a fair distribution of assets.
Is Separate Property Subject to Equitable Distribution?
In New Jersey, only marital property, meaning assets acquired during the marriage, are subject to equitable distribution. Any property that was acquired before the marriage is considered separate property. These assets are not eligible for distribution but rather remain with the original owner unless otherwise stated in a prenuptial or postnuptial agreement. It’s important to note that even after marriage, separate property can be obtained, such as property that was gifted to one spouse or inherited by one party. Furthermore, if separate property is mixed with marital property, it will be considered a commingled asset and thus subject to equitable distribution.
As you can see, property division can be an incredibly complex process. At Arndt, Sutak & Miceli, LLC, we understand you have a lot at stake. If you are facing a divorce, please don’t hesitate to contact our skilled lawyers who can help protect your hard-earned assets. Connect with our firm today to learn how we can help you fight for the best possible outcome.
