Determining an Equitable Distribution in New Jersey
In cases of divorce, the Court divides your marital assets and debts according to the principles of equitable distribution. This means the division is intended to be fair, but it does not necessarily mean an equal division.
The Court considers a wide range of statutory factors when making determinations regarding equitable distribution. Each case is unique. You should speak to a seasoned divorce attorney with experience in property division for more information on determining equitable distribution in New Jersey.
How Are Marital and Separate Property and Debts Identified?
What is Marital Property?
Marital property and debts generally include any assets and debts acquired by both or either of the spouses during the marriage, regardless of who holds actual title to the property or whose name the debt is in. Examples include the following:
- Real estate, including permanent residences, vacation homes, and investment properties
- Bank accounts, including checking, savings, and CDs
- Retirement savings, such as IRAs, 401(k), pensions, and other retirement plans
- Investment accounts
- Restricted stock units, stock options, and other deffered compensation
- Family-owned businesses
- Vehicles
- Personal property, including jewelry obtained during the marriage and household furnishings
- Debts, including mortgages, credit card balances, and personal loans
- Outstanding tax liabilities
A knowledgeable family law attorney in New Jersey can answer questions about equitable distribution during a consultation.
What Is Separate Property?
Separate property refers to any assets and debts that are not subject to equitable distribution and includes any property owned by either person before the marriage or after filing a complaint for divorce. It also includes any gifts or inheritances received by either spouse from third parties before, during, or after filing a complaint for divorce. Importantly, there are certain narrow exceptions that can convert exempt separate property into marital property that is subject to equitable distribution.
Valuing Marital Property
After determining which property is marital and which property is separate, marital property must be valued. Putting a value on certain assets, such as bank accounts, is straightforward. Putting a value on other more complex assets may not be straightforward. Putting a value on assets like businesses usually requires a forensic accountant. Real estate must be formally appraised by a professional. Putting a value on certain retirement assets, such as a pension, requires the use of an actuary to appraise the present-day value of the pension.
While settling out of court is less stressful and costly, it is not always possible. A qualified divorce attorney from Moskowitz Law Group can help navigate the complex process of equitable distribution, make legal arguments, and fight for a fair outcome.
Factors for Determining Equitable Distribution
Pursuant to N.J.S.A. 2A:34-23.1, the Court considers many different factors when determining equitable distribution, including the duration of the marriage, the age and health of both parties, their respective incomes, and their household and financial contributions to the marriage.
The Court also considers the standard of living during the marriage, any preexisting signed written marital agreements, and the earning capacity of each party. In applying all the necessary statutory factors, the Court’s core principle is fairness to both parties, which does not always mean an equal division of property and debt. Determining equitable distribution is a complex process, but a skilled family law attorney can assist you with every step.
Contact an Experienced Family Law Attorney in New Jersey To Assist with Equitable Distribution
Divorce is often challenging and overwhelming. Understanding your legal rights and responsibilities to protect your interests is crucial for reaching a just outcome.
Speak to a hard-working and skilled family law attorney for more information regarding equitable distribution in New Jersey. Call Moskowitz Law Group today to schedule an appointment.
