Types of Properties in New Jersey Asset Division Cases
A major part of the marriage dissolution process is the division of assets and debt. The two spouses will likely have to go through extensive negotiation with their lawyers and with each other to achieve a fair distribution. There are many different types of property in New Jersey asset division cases, and it can be difficult to understand the legal implications of all of them without the assistance of a qualified professional. If you want guidance about the types of property that will be divided between you and your spouse in your divorce, a New Jersey attorney could help.
The Nuances of Marital Property
One of the main types of property that spouses will divide during a divorce is marital property. This includes anything that was acquired during the marriage, whether that be real property, which refers to real estate, personal property, like furniture or clothing, bank accounts, or stock options. Marital property will be split equitably between the spouses, no matter whose name it is in.
The marital home, which is the residence where the couple resided together during their marriage, is one of the largest assets that two spouses share and dividing it can involve a specific set of rules. In some cases, this asset was acquired by one party prior to the marriage, or a couple’s pre-nuptial agreement defines how this property will be distributed in the event of a divorce. In the absence of a pre-nuptial agreement, if the marital home was acquired during the marriage, it is subject to equitable distribution. A seasoned lawyer in the area who has experience dividing this kind of property could answer any questions a spouse may have.
What is Separate Property?
Separate property is any asset that is not subject to equitable distribution between the parties. For example, anything that was acquired by either spouse prior to the marriage is separate property, as is any inherited asset or gift to one party. It is the duty of the party who owns the separate asset to prove that it is separate and does not belong to their spouse.
Understanding Jointly Titled Property
When two spouses own a piece of property together, it is jointly titled. If the jointly owned property is a piece of real estate, they are both titled on the deed. This is called a tenancy by the entirety. Tenancy by the entirety is only available to married couples in New Jersey. For these properties, there is also a right of survivorship, which means that if one spouse were to pass away, the jointly titled property would go to the other spouse.
Closely held businesses are defined by the Internal Revenue Service (IRS) as a business with more than 50% of the value of its outstanding stock owned directly or indirectly by five or fewer individuals at any time during the last half of the tax year. Often, closely held companies are partially owned by members of the same family or married couples, which means they must be divided during divorce proceedings after a business valuation. These divisions can be especially complex and will likely require the assistance of a local property distribution attorney and a forensic accountant.
A New Jersey Attorney Could Help You Divide All Types of Property in Your Divorce Case
The asset division process is one of the most involved and complicated parts of divorce proceedings. The amount of property that has to be distributed between you and your spouse can seem daunting, especially when you realize all of the different types of properties that have to be addressed in New Jersey asset division cases. Fortunately, a knowledgeable attorney could answer every question you have about this process. Call today to schedule a consultation.