Neither spouse is permitted to dissipate marital assets during divorce proceedings or while a divorce is being contemplated. This means that a spouse cannot transfer, hide, sell, spend, or otherwise use marital assets in a manner that is inconsistent with how the couple ordinarily used them during the marriage. If a spouse is suspected of dissipating marital assets, the other spouse can request the court to “freeze” the couple’s marital assets. The goal is to prevent the dissipation of assets to preserve them for equitable distribution between the spouses.

If you believe your spouse is intentionally draining your bank accounts or dissipating marital assets, you need answers you can count on. Reach out to our family law attorneys for legal guidance.

How to Freeze Marital Assets in a New Jersey Divorce

When a spouse files for divorce, there is an automatic duty imposed on both spouses to refrain from dissipating marital assets and to maintain the financial status quo. If one of the spouses is dissipating assets or violating the status quo and refuses demands to stop doing it, your family law attorney will file a motion with the Court. That motion will be filed on either a non-emergent basis or an emergent basis. Your attorney will help you decide which kind of motion to file. If necessary and appropriate, an emergent order can be issued almost immediately to prohibit the sale of property, closing accounts, or changing beneficiaries on insurance policies. You may also be able to stop destructive behaviors such as the creation of new debt or significant economic abuse of marital funds. If the Court does not deem the spouse’s misconduct to raise an emergent issue, the Court will take longer to issue a regular, non-emergent order if the motion is granted.

It is common to request these orders at the start of a divorce or earlier on in the proceedings, particularly in high-net-worth or contentious cases. However, if marital assets were already wasted in any way prior to the divorce, you can make a claim for dissipation of marital assets and argue that the Court should add the value of the wasted assets back into the total, the remaining assets to be divided as part of the Court’s Judgment of Divorce.

New Jersey’s Equitable Distribution Laws Explained

Once one party files a Complaint for Divorce with the Court, New Jersey’s equitable distribution laws will be applied when the Court determines how to divide marital assets.

Under N.J.S.A. 2A:34-23.1, marital assets and debts are divided fairly, but not necessarily equally. This allocation is based on a number of factors like the length of the marriage, each party’s income, and each party’s financial and non-financial contributions toward the acquisition and preservation of marital assets. In most cases, all assets acquired by either spouse from the date of marriage until the Complaint is filed are subject to division. However, separate property, such as gifts from third parties or an inheritance, is usually exempt from this law. A spouse is entitled to have all marital assets preserved for equitable distribution. This is why dissipation is forbidden, and the Court provides potential remedies to stop it from happening by “freezing” assets or to make up for dissipation if it is discovered too late.

Let Our Skilled Attorneys Help You Freeze Your Marital Assets

If your spouse is irresponsibly spending your joint assets on exotic vacations, new significant others, or anything else that was not typical during the ordinary course of your marriage, you are right to be concerned about your financial future post-divorce.

While you can freeze marital assets in a New Jersey divorce, if you want to achieve the best possible outcome in your case, make sure you have a trusted legal advocate on your side. To protect your rights, especially if you fear a spouse is dissipating marital assets, consult with a Moskowitz Law Group family law attorney to initiate this process. Schedule your case evaluation now.