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Are you concerned about how your assets will get divided in a New Jersey, divorce? An experienced lawyer can clarify what you can expect and assist you in building a strong case for fair property division.
How Do New Jersey Courts Divide Property in Divorce Cases?
New Jersey courts follow the “equitable distribution” doctrine to divide marital property in divorce cases. Importantly, equitable distribution does not mean an equal, 50/50 split. Instead, the court considers what is equitable (fair) based on the unique details of each case.
What Is the Difference Between Marital and Separate Property?
In New Jersey, property division determinations depend on whether assets are classified as marital or separate property. Marital property includes assets and debts that both spouses acquired during the marriage. This can include the family home, joint bank accounts, retirement accounts, and cars. Courts consider these assets subject to equitable distribution, meaning they will divide them based on what is fair in the divorce.
Separate property, on the other hand, refers to assets that either spouse owned individually before the marriage or received as a gift or inheritance during the marriage. Separate property usually remains with the original owner and is not part of the division process. However, if one spouse commingles separate property with marital property—like depositing inherited funds into a joint account—the court could classify it as marital property and divide it accordingly.
Who Gets the House in a New Jersey Divorce?
In a New Jersey divorce, the court uses equitable distribution principles to decide who gets the house. If the home is marital property, the court will consider each spouse’s financial contributions and needs to determine who can keep it. For example, the court might allow one spouse to keep the house if they have primary custody of children. Other times, the court might order the couple to sell the home and split the money from the sale. Ultimately, the decision depends on what the court believes is fair for both parties.
Factors New Jersey Judges Consider in Property Division Decisions
New Jersey couples can decide how to divide their marital property during a divorce, but their decisions are still subject to court approval. If a couple reaches an agreement on property division, they can submit it for the court’s review. However, if a judge finds the proposed division unfair, they can reject it.
If a couple cannot agree on how to divide their marital property fairly, the court can step in and make the property division decisions for them based on factors like:
- The length of the marriage
- Each spouse’s financial and non-financial contributions during the marriage
- The standard of living during the marriage
- Each spouse’s age, health, and earning potential
- Each spouse’s financial needs and debts
- Custodial arrangements for the couple’s children
Debt Division in New Jersey Divorce Cases
Just like with marital property, New Jersey courts consider debts acquired during a marriage as belonging to both spouses. This means both spouses share responsibility for debts like credit card balances, mortgages, car loans, and personal loans. Marital debts are, therefore, subject to equitable distribution rules in New Jersey divorces. However, debts one spouse incurred before the marriage usually remain separate and do not affect the other spouse. The court looks at factors like each spouse’s financial situation, earning potential, and involvement in the debt to determine a fair debt distribution based on each person’s ability to repay.
How a New Jersey Divorce Attorney Can Help
Property division can be one of the most challenging aspects of divorce, especially when you’re concerned about protecting what matters most to you. At Bozanian McGregor, LLC, we can help you understand how New Jersey’s property division laws apply to your unique situation and work with you to protect your assets. Contact us today for an initial consultation and get the support you need to make informed decisions for your future.