Equitable Distribution of Property in New Jersey
New Jersey divides marital property through equitable distribution. Equitable means fair, which is not always the same as equal. Domers Bonamassa Farrow helps clients throughout South Jersey identify, value and divide property and debts in divorce and civil union dissolution cases.
What Property Is Divided
Under N.J.S.A. 2A:34-23, the court may divide property that either spouse legally or beneficially acquired during the marriage, regardless of whose name it is in. Property received during the marriage as a gift or inheritance from a third party is generally excluded, but gifts between spouses can be divided. Property owned before the marriage is generally not divided, although an increase in its value during the marriage may be. The period for acquiring marital property generally ends when the divorce complaint is filed.
How Property Is Divided
Courts follow three steps: deciding which assets are eligible for distribution, determining their value, and deciding how to divide them fairly. The law presumes that each spouse made a substantial financial or non-financial contribution to the property acquired during the marriage. The factors in N.J.S.A. 2A:34-23.1 include:
- the length of the marriage and the parties’ ages and health;
- the income or property each party brought to the marriage;
- the standard of living during the marriage;
- any written agreement about property, such as a prenuptial agreement;
- each party’s economic circumstances, income and earning capacity;
- each party’s contribution to the other’s education or earning power;
- each party’s contribution to acquiring, preserving or increasing the value of marital property, including as a homemaker;
- the tax consequences of the proposed distribution;
- the need of a custodial parent to own or occupy the marital home;
- the parties’ debts and liabilities; and
- the extent to which a party deferred career goals.
Common Assets in a New Jersey Divorce
- The marital home: one spouse may keep the home and buy out the other, or the home may be sold and the proceeds divided.
- Retirement accounts and pensions: the marital portion is often divided through a qualified domestic relations order.
- Businesses and professional practices: valuation often requires a financial expert.
- Bank and investment accounts, vehicles and personal property.
- Debts: mortgages, credit cards and loans incurred during the marriage are also allocated.
Agreements About Property
A valid prenuptial or other written agreement can determine how some or all property is divided. Most couples resolve equitable distribution through a negotiated marital settlement agreement, mediation or arbitration rather than a trial.
Related Family Law Pages
Speak With a South Jersey Divorce Lawyer
If you have questions about how your property and debts will be divided, request a consultation or call (856) 596-2888.
Disclaimer
This page provides general information about New Jersey law and is not legal advice. Reading it does not create an attorney-client relationship. Laws and court rules change, and the outcome of any case depends on its specific facts.