Common Issues During Asset Division in New Jersey
When it comes to dividing assets during a divorce, New Jersey is what is known as an equitable distribution state. Thus, New Jersey law requires a fair distribution of assets that is not necessarily equal. The Court has a three-step process in dividing assets, which involves identifying, valuing, and dividing any divisible assets according to certain factors such as the length of the marriage, the age and physical health of both parties, the income and property each party brought to the marriage, contributions to the acquisition of and maintenance of assets, the standard of living that the parties enjoyed during the partnership, and any preexisting written agreements that the parties entered into pertaining to the division of assets in the event of a divorce.
While the process is well developed, there are common issues during asset division in New Jersey that can lead to confusion and contention between the parties. Our property division attorneys can help you navigate any issues with this process.
The Classification of Assets
In New Jersey, certain assets are not subject to equitable distribution. This means certain assets belonging to either spouse are exempt from being divided between the parties in the divorce. Generally speaking, property that each individual party brought into the marriage or that they received as a gift or inheritance during the marriage is generally not divided in a divorce and remains with the party that owns it. This kind of property is what is known as separate property. There are certain limited exceptions to this rule. For example, the separate property of a party can be commingled during the marriage. For example, if the mortgage on a house that a spouse owned prior to the marriage is paid down, in whole or part, with the other spouse’s money, this can result in the house being subject to division in the divorce.
The Proper Valuation of Complex Assets
Another common problem that arises during the process of asset division in New Jersey is the proper valuation of complex assets. This includes the division of real property, which must be properly appraised.
Another complex asset is a family-owned business that both parties have contributed to. In such a case, a forensic expert is used to put a value on the business and determine what each party’s contributions to the business are worth in dollars and cents.
Other complex assets include retirement assets, investments, stock options, and other deferred compensation from employment. Properly valuing these assets can require a forensic expert and/or extensive documentation.
Dividing Marital Debts
As with marital assets and property, debts that were incurred during the marriage for the benefit of the marriage must also be divided. This often leads to conflict between the parties because they may dispute any debt incurred in only one party’s name. To divide debts fairly, the Court considers certain factors, including the income and earning capacity of each spouse that may enable them to pay the debt and the nature of the debt.
If one party or the other incurred debt in their name that was not the kind of debt they incurred in the usual course of the marriage, or debt that did not benefit the marital enterprise in any way, the party who incurred the debt may be held solely responsible for repaying it
Contact Moskowitz Law Group, LLC to Learn More About Common Issues During Asset Division in New Jersey
The legal team at Moskowitz Law Group has a deep understanding of the financial and emotional challenges involved in divorce, especially when it comes to asset division. We want to know what your priorities and goals are for your case so we can pursue those goals in the services we provide as we fight on your behalf. Contact us today for a free case evaluation to discuss common issues during asset division in New Jersey.
