Types of Assets in Teaneck
Resolving financial issues is often the most time-consuming and stressful aspect of divorce. Couples who are on the same page regarding their children may strongly disagree on property division issues.
The first step in developing property division goals and accomplishing them is understanding the types of assets in Teaneck that are subject to division in a process called equitable distribution. The property division attorneys at Moskowitz Law Group can explain the law, help you set realistic expectations, and aggressively pursue your goals.
Distinguishing Separate Property
Spouses often enter marriage with their own property. Anything either spouse owned before marriage generally remains their separate property and is immune from being divided with their spouse. There are narrow exceptions to this rule if certain conditions are met that convert such separate property into marital property.
Gifts from a third party to either spouse during the marriage are the separate property of the spouse who received it unless they allowed the gift to be used as marital property. Inheritances are also a spouse’s separate property unless they treat the inheritance as if it were marital property. Determining whether a spouse gained an interest in the other spouse’s separate property requires a complex analysis, but an attorney at Moskowitz Law Group can evaluate whether this might be an issue in a specific case.
Couples in Teaneck can also designate what constitutes separate and marital property in a prenuptial or postnuptial agreement. Doing so allows the couple to have more certainty about which assets they share with each other. A Court will enforce these agreements if all legal requirements in entering into these agreements have been met.
Marital Property Includes Various Assets
Anything either party or the couple acquired during the marriage other than gifts and inheritances made to one party or the other is generally considered marital property. It usually does not matter whose name the property is titled in.
When one spouse receives money in a personal injury settlement, the portion compensating their economic damages is marital property, but pain and suffering damages are the spouse’s separate property.
Personal property like furniture, collections, and gifts from one spouse to the other are generally considered marital property. Money in bank accounts, safes, safe deposit boxes, retirement plans, pensions, and brokerage accounts are considered marital property to the extent the money contributed to them was deposited during the marriage. If a spouse had a pension or brokerage account when they married, the portion of the account’s value attributable to their contributions before the marriage is considered separate property.
Interests in a business and deferred compensation can also be marital property. Determining the value of these assets and what portion of them is subject to being divided is complex. A family law attorney in Teaneck can work with tax and business valuation professionals to ensure a fair allocation of these types of assets.
How a Court Divides Marital Property
Property division issues are best resolved through negotiations. A negotiated agreement allows more flexibility and offers the possibility for each spouse to keep the assets that are most important to them.
When a couple cannot agree on property division, the Court will decide how to divide their property based on the principles of equitable distribution, meaning the judge must divide property fairly, but not necessarily evenly. N.J.S.A. 2A:34-23.1 provides the factors a judge must consider when dividing a couple’s property.
The length of the marriage, age and health of each spouse, and each spouse’s ability to support themselves are important considerations in equitable distribution. The lifestyle during the marriage, value of each spouse’s separate property, and each spouse’s contributions to the marriage are also considered, among other factors. When a judge must divide a couple’s property, a divorce attorney in Teaneck can offer persuasive arguments to achieve a favorable result.
Contact a Teaneck Divorce Attorney About Dividing Different Types of Assets
Asset division can be a challenging aspect of divorce proceedings, even when a couple’s finances are relatively simple. When a couple has a high net worth or complicated assets, dividing their assets can require extensive negotiation and the assistance of various experts.
You can prepare by understanding the types of assets in Teaneck that are subject to division in your divorce. Consult an experienced family law attorney at Moskowitz Law Group for help. Get started today.