Navigating the division of assets and debts during a divorce can be one of the most stressful aspects of ending a marriage. In New Jersey, this process is known as equitable distribution, and it involves more than just deciding who keeps the family home or car. Whether you're dealing with complex financial portfolios or jointly owned real estate, it's essential to understand how equitable distribution works to ensure a fair resolution.

What Does Equitable Distribution Mean in New Jersey?

In New Jersey, equitable distribution refers to dividing marital property in a way that's fair to both spouses. Unlike community property states that split assets 50/50, New Jersey courts assess a variety of factors to determine what is equitable (fair), but this does not necessarily mean equal.

Types of Property Subject to Division

Marital property includes assets and debts acquired during the marriage. Here are some examples:

• Homes and Real Estate: This includes primary residences, vacation properties, and any other jointly owned real estate.

• Bank Accounts and Investments: All shared accounts and investments, including retirement savings and pensions, are divided.

• Vehicles and Personal Property: Cars, furniture, electronics, and other valuables may be subject to division.

• Debts: Mortgage loans, credit card debt, and personal loans incurred during the marriage are also included.

Keep in mind, not everything is up for division. Items acquired before the marriage or through inheritance may remain separate property, as long as they haven't been commingled with marital assets. Clarifying which assets are marital and which are separate can be key in ensuring a fair outcome.

Factors the Court Considers

New Jersey courts examine a range of factors when dividing marital assets and debts, including:

• The length of the marriage

• Each spouse's financial and non-financial contributions to the marriage

• The current and future earning potential of each spouse

• The standard of living during the marriage

• Any pre- or post-nuptial agreements

• The custody arrangement for any children, and their financial needs

These factors help determine a fair distribution of property, with the goal of ensuring that both parties can move forward securely after the divorce.

What Happens to the Family Home?

For many couples, the family home is their most valuable asset. Deciding what happens to the house can be complex. One spouse may continue to live there, particularly if they have primary custody of the children, or the house may be sold and the proceeds divided. If you're facing tough decisions about your home, it's important to explore all options with care.

Handling Debt and Liabilities

Just as marital assets are divided, so too are marital debts. This can include everything from credit card debt to mortgage payments. The court will aim to divide these responsibilities in a way that reflects the circumstances of both parties. For instance, the spouse who takes ownership of the home might also be responsible for the mortgage.

Complex Financial Situations

In cases involving high net worth or complex financial portfolios, dividing assets such as businesses, stocks, or real estate investments can require additional legal and financial expertise. These cases often involve a more detailed evaluation of finances and tax implications to ensure an equitable division.

Hidden Assets: What to Watch For

Unfortunately, some spouses may attempt to hide assets to avoid sharing them in a divorce. If you suspect that your spouse is concealing financial information, legal tools such as forensic accounting and asset tracing can help uncover hidden assets to ensure fairness in the division process.

Contact Our Bergen County, NJ Divorce Lawyers Today

The division of property can have lasting effects on your financial future. At Marotta Tuchman & Blazini, LLC, we strive to ensure that your rights are upheld and that the division of your marital property is handled fairly. Our team provides personalized attention, guiding you through each step of the process to help you move forward confidently.

If you're going through a divorce in New Jersey, and need assistance with equitable distribution, and/or other issues such as alimony, custody, parenting time or debt division, contact us today at (201) 368-7713 to schedule a consultation.