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What Types of Assets are Divided in Divorce?

Marriages are partnerships in which property becomes intertwined and finances shared. If you are contemplating divorce, understanding how the process works and what New Jersey law has to say about the way your property will be divided is important. That’s because property division can be one of the most challenging and contentious aspects of any divorce – and one that can have a significant impact on your future.

At Moskowitz Law Group, LLC, our New Jersey family law attorneys leverage decades of combined experience guiding clients through their legal journeys and all issues involved in their divorce, including property division. Below we explain what New Jersey considers marital property, and how those assets are divided in divorce.

Martial Property

The state of New Jersey considers assets acquired by a married couple – either individually or together – during the course of a marriage to be marital property. This is regardless of how property is titled (i.e. if a vehicle purchased after marriage is under one spouse’s name, it is still considered martial property). In addition to assets, marital property also includes debts acquired during the course of a marriage.

Because separate and marital property can be commingled during a marriage, it can be difficult to identify what is considered separate and marital property. Our legal team assists clients in determining what is divisible under law and what is not. This includes identifying separate property that cannot be divided, such as property acquired as an inheritance, or acquired before a marriage and kept separate.

Generally, most divorce cases involve the division of certain common assets. While these include obvious forms of physical property like the family home, they can also include division of other types of assets. For example, a divorce may involve the division of:

  • Homes, rental properties, and other real estate
  • Financial assets (bank accounts, stocks and bonds, etc.)
  • Tax refunds
  • Vehicles
  • Debts, including credit
  • Businesses
  • Retirement accounts and benefits
  • Debts, including credit card debt
  • Special collections, antiques, or artwork

Aside from distinguishing between marital and separate property, it is also important to accurately value marital property subject to division. Assets are typically valued at fair market value, which may require business or real estate appraisals, or forensic accounting.

Equitable Distribution

Spouses seeking divorce in New Jersey will need to come to agreement over how their marital property will be separated. If they cannot come to an agreement, a decision will be made by the court. Because New Jersey divides property under equitable distribution rules, marital property will be fairly, but not necessarily equally, divided in a divorce. This is a matter that can be influenced by a number of factors, including the duration of a marriage, each spouse’s age and earning potential, the standard of living established during the marriage, and more.

Resolutions for property division can be reached in various ways, including one spouse “buying out” the other spouse’s share of a particular asset, such as the family home. When disputes over marital property or valuation arise, they are best handled by experienced attorneys who can effectively advocate for your best interests.

If you have questions regarding divorce and property division, our legal team at Moskowitz Law Group, LLC is available to help. Contact us for a free case evaluation.