Divorce can be a difficult and emotional process, and one of the most important aspects of a divorce case is the equitable distribution of property, assets, and debt obligations. Equitable distribution is a legal concept that refers to the fair and just division of marital property between spouses. In New Jersey, equitable distribution does not always result in a 50-50 split, and courts must consider a variety of factors when making decisions about property division.
These factors can include the length of the marriage, the income and earning potential of each spouse, the standard of living during the marriage, and the contributions of each spouse to the marriage. It is important to work with an experienced family law attorney who can help you understand your rights and obligations under New Jersey’s equitable distribution laws. With the right legal guidance, you can navigate the divorce process and emerge with a fair and just settlement that protects your interests and your future.
When going through a divorce, it is crucial to understand how marital assets are divided so that each party can determine what he or she believes is fair and does not have any regrets when the proceedings are finalized. The process of distributing marital assets in New Jersey is often called Equitable Distribution. The parties themselves can decide how to divide the assets, but if they cannot do so, a judge will make the decision for them. It is important to note that in the legal context, equitable does not necessarily mean equal. Equitable distribution in New Jersey is applicable only to property that was acquired during the marriage, specifically from the date of the marriage to the date that the divorce complaint was filed.
Therefore, if one party owned a house prior to the marriage, the other party is not eligible for a share of that property. Separate property, on the other hand, is usually property that is acquired by one spouse prior to marriage. It can also include property that was acquired during the union if it was an inheritance or gift from a third party. It might also be a property that was obtained after the divorce complaint was filed.
In every divorce case involving equitable distribution, a court must determine three things:
- what property and/or assets are eligible for distribution;
- the value of the eligible property and/or assets;
- how to then allocate them most equitably between the parties.
To be eligible for equitable distribution, the property must be earned or acquired during the marriage. However, New Jersey courts do not automatically require that marital assets be subject to equal distribution (i.e. 50-50 split), or even that both parties receive a portion at all. In other words, courts are not required to divide assets equally between the parties. Instead, the court will consider a variety of factors when making decisions about property division, including the length of the marriage, the income and earning potential of each spouse, the standard of living during the marriage, and the contributions of each spouse to the marriage.
In the midst of a deadly pandemic and rising divorce cases, the question of how inheritances are handled in New Jersey divorces has increasingly cropped up. The short answer is that for the most part, an inheritance received by one spouse will not be subject to equitable distribution at the time of a divorce. However, as with so many other aspects of New Jersey divorce law, there are exceptions. Inheritances Received During Marriage New Jersey is an equitable distribution state. What that means is any property or assets acquired during the marriage by either spouse is considered “marital property.” NJ Rev Stat § 2A:34-23.1 is the state’s equitable distribution law. Equitable distribution does not necessarily mean a 50-50 split; it means a division of property, assets, and debt based on what is most fair in light of the totality of the circumstances (both parties’ income, health, childcare roles, use of marital funds, the added value increase would be considered marital).
The process of dividing property between spouses during a divorce in New Jersey is known as “equitable distribution.” The general rule is that all property acquired from the date of the marriage ceremony through the date on which a Complaint for Divorce was filed is eligible for equitable distribution. One doctrine that may be applied to divide assets exempt from equitable distribution is “unjust enrichment.” For example, the New Jersey Supreme Court recently required the division of the premarital portion of a $2.25 million closing bonus acquired prior to the parties’ marriage based on unjust enrichment. It is important to work with an experienced family law attorney who can help you understand your rights and obligations under New Jersey’s equitable distribution laws. With the right legal guidance, you can navigate the divorce process and emerge with a fair and just settlement that protects your interests and your future.
At Freeman Law Center, LLC., we specialize in family law, including divorce cases. We have over 30 years of experience in handling divorce cases and are ready to assist clients with the most difficult of property division issues. We can help clients understand the complexity of the New Jersey divorce process and the factors that the court will consider when making decisions about property division.
When it comes to equitable distribution in New Jersey divorce cases, we can help clients understand what property and/or assets are eligible for distribution, the value of the eligible property and/or assets, and how to allocate them most equitably between the parties. We can also help clients understand how inheritances are handled in New Jersey divorce cases and can help them protect their rights and interests.
We understand that divorce can be a difficult and emotional process, and we are committed to helping clients navigate the process with compassion and understanding. We can provide clients with the legal guidance and support they need to emerge from the divorce process with a fair and just settlement that protects their interests and their future.
At Freeman Law Center, LLC., we can help clients with equitable distribution in New Jersey divorce cases. We have over 30 years of experience in handling divorce cases and can provide clients with the legal guidance and support they need to navigate the process with compassion and understanding. With our help, clients can emerge from the divorce process with a fair and just settlement that protects their interests and their future.