Divorce can be a complex and emotionally charged process, particularly when it comes to dividing marital assets. In New Jersey, the division of assets is governed by the principle of equitable distribution, which means that assets are divided fairly, though not necessarily equally, between the spouses. Understanding the intricacies of asset division in New Jersey divorces is crucial for anyone going through a divorce in the state. At Bozanian McGregor, LLC, we are dedicated to providing clear, comprehensive guidance through every step of the marriage dissolution process. We are here to make sure your assets are appropriately valued and assessed; that care is taken to shield assets from distribution that are not subject to division (such as pre-marital, inherited, or gifted assets); and to ensure that the division of marital assets is equitable and in keeping with New Jersey’s equitable distribution laws.
Marital vs. Separate Property
One of the first steps in asset division is distinguishing between marital and separate property. Marital property includes assets acquired during the marriage, regardless of whose name is on the title. This property encompasses real estate, bank accounts, investments, retirement accounts, and personal property like cars and furniture. Separate property, conversely, consists of assets acquired before the marriage or through inheritance or gift, provided they have not been commingled with marital assets.
Factors Influencing Asset Division
New Jersey courts consider various factors when determining the equitable distribution of marital assets. Considering each case’s unique circumstances, these factors ensure that the division is fair and just. Key factors include:
Duration of the Marriage: Longer marriages often result in a more equal distribution of assets.
Income and Property Brought to the Marriage by Each Party: Contributions made by each spouse, financial or otherwise, are considered.
Standard of Living Established During the Marriage: Courts aim to maintain a similar standard of living for both parties post-divorce.
Economic Circumstances of Each Party: Current and future financial situations are assessed, including earning potential and financial needs.
Contributions to the Education, Training, or Earning Power of the Other Party: Non-financial contributions, such as supporting a spouse through education or career advancement, are recognized.
Age and Physical and Emotional Health of the Parties: Health considerations can impact a party’s ability to earn income and support themselves.
Tax Consequences of the Proposed Distribution: Potential tax implications of dividing certain assets are evaluated.
Any Written Agreements Made by the Parties Before or During the Marriage: Prenuptial and postnuptial agreements are honored, provided they are valid and enforceable.
Valuation and Distribution Process
Valuation is a critical step in the asset division process. Accurate valuations ensure a fair distribution of property, which often involves appraisals of real estate, businesses, and valuable personal property. Financial experts may be employed to assess the value of complex assets, such as stock options or retirement accounts.
Once the assets are valued, the court aims to distribute them equitably. This distribution may involve dividing physical assets, assigning certain assets to one party, or selling assets and splitting the proceeds. In some cases, one spouse may receive a more significant portion of the marital property to balance out other financial disparities, such as differences in income or earning potential.
Special Considerations Concerning Asset Division
Several special considerations can affect asset division in New Jersey divorces:
Retirement Accounts: Retirement accounts are often significant marital assets. Dividing these accounts must comply with federal laws, which may involve drafting a Qualified Domestic Relations Order (QDRO) to divide pensions and 401(k)s. QDROs are a type of court order or judgment that specifies how a retirement benefit will be divided when someone retires.
Business Interests: If one or both spouses own a business, the valuation and division of the company can be particularly complex. Courts consider the business’s value, each spouse’s involvement, and future earning potential.
The attorneys at Bozanian McGregor work with highly regarded forensic accountants, real estate and business valuation specialists, and other savvy financial professionals who help us provide the court with detailed and accurate information regarding marital assets.
Hidden Assets: Transparency is essential in the asset division process. If one spouse attempts to hide assets, the court may impose penalties or award a larger share of the remaining assets to the other spouse.
Navigating asset division in a New Jersey divorce requires a thorough understanding of the state’s equitable distribution laws and the factors influencing asset division. It is essential for individuals getting a divorce to work with skilled attorneys who can provide guidance and ensure that all assets are accurately valued and fairly distributed. By doing so, individuals can confidently move forward, knowing their financial interests are protected. Bozanian McGregor LLC has experienced attorneys who can help clients receive what they are entitled to regarding asset division during a divorce. We are here to guide you through your divorce, always focusing on doing what is most effective for you and your family.
Contact the Asset Division Attorneys at Bozanian McGregor Today
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