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Understanding Asset Distribution in New Jersey Divorce
A major part of any divorce is the division of marital assets, defined as property acquired during the marriage by either party. In New Jersey, property is divided according to equitable distribution factors. Assets are divided in a way that is fair, but not necessarily 50/50.
What Constitutes Marital Property and Debts in New Jersey?
In most divorce cases, marital property includes almost all assets and debts acquired by either spouse from the date of marriage to the date a divorce complaint is filed. This would likely include the marital home, vacation and investment properties, cash, bank accounts, stocks, bonds, retirement accounts, pensions, and businesses. Assets acquired prior to marriage, or gifts or an inheritance to one spouse, are not usually considered marital property unless the assets were comingled with marital funds during the marriage.
Often-Missed Assets in Divorce: What to Look For
There are also a number of oft-missed assets that you will want to keep your eyes open for and discuss with your attorney. They include:
- Frequent flyer miles
- Season tickets
- Country club and gym memberships
- Intellectual property
- Cemetery plots and prepaid funeral arrangements
- Loans made to family or friends
- Tax refunds
How New Jersey Courts Determine Equitable Asset Distribution
Equitable distribution simply means that property is divided fairly, but that does not necessarily mean the property is divided evenly. When going before a judge, he or she will ultimately divide your property according to a number of factors, including but not limited to:
- The length of the marriage
- The standard of living established during the marriage
- Any existing prenuptial agreements
- Each spouse’s overall health and age
- The current value of all property
- Tax consequences of a proposed distribution
- Each spouse’s debts and liabilities
Any property owned by one spouse prior to marriage is usually not considered marital property and will not be divided but there are exceptions to the rule. If this is your situation, you will definitely want to discuss the details with one of our attorneys.
Protecting Pre-Marital Assets and Inheritances
Any property acquired by either party through inheritance or gift is not considered a marital asset, so it would not be subject to equitable distribution. So, if you received any property through a gift or inheritance during your marriage, it is yours and yours alone and will be considered separate property, and will be exempt from equitable distribution as long as you protect it. To protect your inheritance, gift or pre-marital asset, you must NOT comingle it with marital assets, meaning that it must be kept in a separate bank account.
Debt Division in New Jersey Divorce
In New Jersey, marital debt is defined as any debt incurred during the marriage. Such debts may include property, bank accounts, businesses, and cash. It may also cover other debts like memberships, season tickets, intellectual property, tax liabilities, and loans made to family and friends. Typically, both spouses are responsibility for these debts. Debts incurred prior to a marriage are not generally considered marital debt.
Your Options for Debt and Asset Distribution: Mediation vs. Litigation
Mediation
A mediator is a specially trained, neutral person who helps with communication and discussing your concerns so you and your spouse can reach a voluntary agreement. A mediator is not a judge or arbitrator, does not decide your case, or give opinions or predictions about the court’s decisions. Mediation can save valuable time and money. At DeTorres & DeGeorge, our attorneys have significant experience both in participating in mediation as advocates for our clients, and in the role of mediator. You can choose to attend mediation prior to filing for divorce, or during the litigation process.
Litigation
Divorce litigation in NJ is the formal process of divorce, governed by the NJ court rules. If parties cannot settle their issues outside of court, the case will proceed to trial, where the issues that cannot be resolved will be decided by a New Jersey Family Law judge. Litigation can be very costly and time consuming.
Why Choose Us for Your Debt & Asset Distribution
Our family law attorneys have extensive experience in the fair distribution of marital and non-marital assets. We will guide you through the divorce profess and work diligently to secure your financial future.
Secure your Financial Future, With Us
Contact our team at DeTorres & DeGeorge today to learn how to protect your assets in a divorce process. Our legal experts are committed to facilitating settlements for our clients, to ensure our clients settle their matters fairly with the least amount of emotional and financial expense, while addressing all relevant issues concerning the dissolution of your marriage.
