Types of Assets in New Jersey
The division of assets and property is often a crucial aspect of a divorce case. Divorcing couples built their lives together and need to find ways to divide assets and property acquired during their marriage. Not all assets or property are subject to division.
Our divorce lawyers are here to explain the various types of assets in New Jersey divorce cases and which assets are subject to being divided in a divorce. Dividing assets may seem like a straightforward process, that is not always the case. People may also try to hide assets to avoid sharing them with their spouse. At Moskowitz Law Group, our asset division attorneys help divorcing spouses determine how their property should be divided.
What Is Marital Property?
Marital property is generally defined as the property that both spouses, or either of the spouses, legally acquired while they were married, specifically between the date of the marriage and the date one of the spouses files a complaint for divorce. Types of marital assets in New Jersey divorce cases include:
- Real estate
- Investments
- Bank accounts and cash
- Retirement assets
- Business interests
- High-value possessions or collections such as art, jewelry, and vintage items
- Motor vehicles, including cars, boats, planes, jet skis, and motorcycles
Marital assets are subject to division by the Court during a divorce proceeding. Both spouses are expected to disclose all their assets and the value of their assets. If the value of an asset, such as a piece of real estate, pension, or business, is unknown, it must be identified and appraised. If both parties can reach an agreement about who gets what, it makes the divorce process faster. If they cannot agree, the divorce process can last longer. However, it is important to have an attorney review the agreement for fairness and transparency.
Separate or Non-Marital Property
Separate or non-marital assets generally include property acquired before the marriage, specifically gifted to one of the spouses, inherited, acquired after the complaint for divorce has been filed, or specifically excluded from division under a prenuptial or postnuptial agreement. These may include:
- Real estate owned prior to the marriage
- Inherited real estate, cash, or accounts
- Appreciation in value of premarital assets during the marriage
- Gifts from third parties to a specific spouse
- Property acquired during marriage from the proceeds of premarital assets or income
These types of assets are not subject to division in a New Jersey divorce and will remain the separate property of the spouse who owns them, even if they are highly valuable. All that said, there are narrow exceptions when it comes to keeping non-marital property from being divided and it is crucial to have full knowledge of the laws governing equitable distribution.
Understanding Equitable Distribution
The process of dividing marital property is called equitable distribution. In equitable distribution, all marital assets must be first be properly identified and valued. After all marital assets are properly identified and valued, the Court will proceed to distribute them equitably between both spouses according to the statutory factors set forth in N.J.S.A. 2A:34-23.1. It is important to understand that equitable distribution implies a fair and equitable division, but not necessarily a 50/50 split. The Court will weigh all the factors in the Statute and divide marital property in ways it deems fair for both individuals. That said, the Court commonly ends up dividing property equally.
Crucial factors that the Court will consider in its decision include the duration of the marriage, each spouse’s income-earning capacity, each spouse’s financial and non-financial contributions toward acquiring and preserving marital property, marital debts, and whether there are any preexisting prenuptial or postnuptial agreements specifying how property should be divided.
Speak with a New Jersey Divorce Attorney About Types of Assets
Divorce is hard enough. Having an experienced asset division lawyer to educate you on the types of assets in a New Jersey divorce case can make you feel more at ease.
At Moskowitz Law Group, our attorneys are committed to helping you navigate your divorce process with as few complications as possible. We will handle identification and valuation of all marital assets so that it is easier to fairly divide them. Let us protect your right to a fair share of the marital property you have acquired over the years. Contact us to explore your legal options.
