If you are going through a divorce, you may be worried about what may or may not be distributable assets. Here is what you should know.
New Jersey is an “equitable distribution” state. That means that any assets acquired between the date of the marriage and the date one party filed a complaint for divorce are subject to be distributed “equitably” – which can often mean 50/50, though that isn’t necessarily the case.
Distributable Assets | List of Possible Distributable Assets
Income, bonuses, retirement accounts, and property can be distributed. The list runs much longer – you’d be surprised by things that the court considers part of the marriage “pot.” An experienced attorney can help you figure out what assets in your case might be subject to distribution.
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Distributable Assets | Non Distributable Assets
Some property will not be subject to distribution. Inheritance will stay with the inheritor. That includes money and stocks as well as things like furniture and other heirlooms. Items clearly associated with one spouse’s hobby will go to that spouse – for example, golf clubs, easels and paints, hunting trophies, etc. Collections that appreciate, however – like antique cars, coins, or artwork – count as investments, and will be subject to equitable distribution even if they are the exclusive passion of only one spouse.
Everyday cars will also be split. If one spouse drives a BMW 7 Series and other drives a Gremlin, the court will add the value of both cars and divide that sum by two. It doesn’t matter who keeps which car, then: both are entitled to half the value of both combined. It’s important to keep in mind that debts are subject to equitable distribution as well as assets: that could include mortgages, loans, and credit card debt.
If you have any concerns about what can be considered distributable assets between you and your spouse, please call our New Jersey Divorce Attorney Brian Freeman and set up a free initial consultation.