Are you preparing for a divorce and concerned about what will happen to your home, personal property, and other assets? New Jersey law follows the principle of equitable distribution, meaning your property will be divided fairly, if not necessarily equally. What does this mean for you? Working with a New Jersey property division lawyer will help you understand how the asset division process works and give you the legal support you need to pursue a favorable outcome.
Joseph J. Russell Divorce & Family Law Attorney of Wilentz, Goldman & Spitzer, P.A., has a century of experience managing complex family law matters for clients of all backgrounds throughout New Jersey. We are committed to our clients, we have access to the resources of Wilentz, Goldman & Spitzer, P.A. (one of the state’s oldest law firms), and we treat every client like family.
Contact us today to get started with a confidential consultation.
Why You Need a New Jersey Division of Assets Lawyer
The division of assets is a considerable source of stress for many divorcing couples. Each spouse often has strong feelings about what they believe they deserve. A property division lawyer in New Jersey can help you understand your rights and responsibilities during this process, providing support that protects your interests at every stage of the legal process. This support is especially important when negotiating with your spouse or their attorney.
With help from an experienced attorney like Joe, you can work toward a fair division of property and avoid costly mistakes that may affect your financial future.
How Are Property and Assets Divided During a Divorce in New Jersey?
In New Jersey, property and assets are divided based on the principle of equitable distribution. This means the court divides marital property fairly but not necessarily equally. Both spouses must list all assets, including homes, vehicles, and bank accounts. The court will consider factors like the duration of the marriage and each spouse’s financial situation to make a decision on asset division.
What Does Equitable Distribution Mean in New Jersey Divorce?
Equitable distribution refers to New Jersey courts’ approach to fairly dividing assets in divorce. This approach does not guarantee an equal split but focuses on what is just based on specific factors. Courts consider each spouse’s contributions to the marriage, their financial situations, and the needs of any children when making determinations regarding property division during divorce.
Understanding equitable distribution helps couples grasp how their assets may be divided and prepares them for negotiations.
Who Gets the House in a New Jersey Divorce?
The principle of equitable distribution also applies to who gets the house in a New Jersey divorce, provided it’s considered a marital asset. If both spouses are on the deed, the court may favor one spouse based on their financial situation or the needs of any dependent children. In some cases, the court may allow one spouse to buy out the other’s interest in the home. In rare cases, the court may order the house sold and the proceeds divided.
Common Types of Assets Divided in a New Jersey Divorce
During a New Jersey divorce, the court divides all marital assets fairly between both spouses. Marital assets include anything acquired during the marriage, regardless of who purchased or used the property. To reach a fair division, both parties must thoroughly and accurately disclose their assets and debts. This process ensures that everything of value is taken into consideration for property division after divorce.
Some of the most common types of assets divided in a divorce include:
- Real estate
- Bank accounts
- Retirement accounts
- Brokerage accounts
- Vehicles
- Personal property
- Business interests
Dividing these assets involves determining their value and figuring out how to distribute them in a way that reflects each spouse’s contributions to the marriage. The court may divide certain assets equally or assign ownership to one spouse with financial compensation to the other. Understanding the range of assets involved helps spouses prepare for this process and make informed decisions about their financial futures.
What About Dividing Personal Property in Divorce?
Dividing personal property in a New Jersey divorce can be difficult, especially when it involves items with sentimental value, like furniture, artwork, or family heirlooms. Personal property includes anything not considered real estate, such as jewelry, electronics, and household items. Both spouses should list their personal property and agree on its division.
In a divorce, property owned before marriage by one spouse typically goes to them in the divorce, while property acquired during the marriage is subject to New Jersey’s equitable distribution principle regarding divorce and property.
Property acquired after separation but before divorce can also complicate matters. In New Jersey, this property may still be considered marital property and subject to division, depending on how it was acquired and used. As your division of assets lawyer, Joe will help you understand how ownership of different personal property may be affected by your divorce.
What Factors Do New Jersey Courts Consider When Determining Equitable Distribution of Property?
How do you divide property during a divorce? In a New Jersey divorce, courts consider several factors when deciding how to fairly divide marital property. The following factors help determine what each spouse should receive based on their individual circumstances and contributions to the marriage:
- Duration of the Marriage – The length of the marriage plays a significant role in the court’s determination. Longer marriages often involve more complex financial arrangements, which can affect how assets are divided. Shorter marriages, on the other hand, may involve more straightforward asset division.
- The Financial Situation of Each Spouse – The court reviews each spouse’s financial standing, including their income, assets, and ability to support themselves after the divorce. This ensures that neither party is left at a significant disadvantage.
- Contributions of Each Spouse – Contributions to the marriage aren’t limited to financial support. The court also considers non-financial contributions, such as homemaking and childcare, when dividing property in a divorce.
- Interruptions for Either Spouse – If one spouse interrupted their career or education to support the other or to care for children, the court takes this into account during property division.
- Actions by Either Spouse – Actions like wasting or hiding marital assets can influence the division process. Courts may penalize a spouse who acted unfairly by adjusting the property settlement in favor of the other.
What Should I Expect During Equitable Distribution?
Equitable distribution in New Jersey involves taking several steps to achieve a fair division of assets and debts during a divorce. Here’s a brief look at the process to help you prepare for what lies ahead:
- Identifying Marital and Non-Marital Property – The first step is determining which assets are marital (acquired during the marriage) and which are non-marital (owned before the marriage or inherited). Only marital property is subject to division.
- Valuation of Assets – Both parties must agree on the value of their assets, including real estate, bank accounts, retirement funds, and personal property. Sometimes, experts may be consulted to appraise certain items, like a home or a business.
- Consideration of the Specific Situation – The court will always look at the unique circumstances of each case. Factors like each spouse’s financial standing and contributions to the marriage play a key role in the final decision.
- Division of Assets and Debts – Once the assets are valued, the court divides both assets and debts in a way that’s fair to both spouses, if not precisely equal. This can include everything from homes and investments to credit card balances and mortgages.
- Negotiation and Mediation – Couples may negotiate or go through mediation to come to an agreement on how to divide their assets without going to court. This can save time and reduce conflict.
- Court Approval and Finalization – Once both parties reach an agreement, the court must approve it to make the settlement legally binding. If the couple cannot agree, the court will make the final decision.
How Are Divorce and Taxes Handled?
Divorce can have significant tax implications, especially when dividing assets like homes, retirement accounts, and investments. One important consideration concerns the sale of property, such as a family home. If the home is sold, capital gains taxes may apply, which will affect how much each spouse receives from the sale. Retirement accounts also require special attention. Transferring funds from a 401(k) or IRA to a former spouse without following proper procedures could lead to tax penalties.
Both parties must recognize the potential tax consequences arising from asset division during a New Jersey divorce. Proper planning with help from experienced attorneys can minimize tax burdens and make the transition smoother and financially manageable for both spouses.
