New Jersey Equitable Distribution Lawyers

Dividing marital assets and liabilities during a divorce can be one of the most challenging aspects of ending a marriage. New Jersey follows the principle of equitable distribution; this approach considers certain factors to determine a division that reflects each couple’s unique circumstances.

Equitable distribution involves examining marital and non-marital property to establish what should be divided between spouses. Unlike community property states, where assets are split 50-50, equitable distribution relies on fairness, which can lead to different outcomes depending on the specifics of the marriage. The New Jersey equitable distribution lawyers at Sanvenero & Cittadino Attorneys at Law are familiar with these laws and procedures and can skillfully advocate for your interests.

What Is Considered Marital Property in New Jersey?

Marital property includes assets and debts acquired by either spouse during the marriage; examples include real estate, bank accounts, retirement accounts, vehicles, and business interests. Property obtained before the marriage or through inheritance or gifts specifically to one spouse is generally considered separate property and not subject to division.

However, the distinction between marital and separate property can become complicated, particularly if separate property has been commingled with marital assets. For example, if one spouse uses inheritance money to purchase a family home, that property may be subject to division. Our New Jersey equitable distribution lawyers can untangle these details to determine what qualifies as marital property.

What Factors Are Considered in Equitable Distribution?

New Jersey courts assess numerous factors to divide marital property fairly, including but not limited to:

• The length of the marriage.
• The standard of living established during the marriage.
• Each spouse’s financial circumstances at the time of the divorce.
• The income and earning potential of each spouse.
• Contributions made by both parties to the marital estate.
• The existence of prenuptial agreements that may influence the division.
• Debts and liabilities accrued during the marriage.
• The needs of any children involved.
• Tax consequences related to property distribution.

Courts examine these considerations to determine a fair allocation of assets and liabilities. Accurate and comprehensive financial documentation is essential for presenting a clear picture of the marital estate during this process.

How Does Equitable Distribution Differ from Community Property?

Community property laws mandate a 50-50 split of marital assets and debts. In contrast, equitable distribution focuses on fairness rather than an equal division. One spouse may receive a larger share of the marital property if the court finds it appropriate based on the abovementioned factors.

For example, in cases where one spouse sacrificed career opportunities to care for children or support the other spouse’s career, the court may allocate a greater portion of assets to compensate for this contribution. Similarly, debts incurred by one spouse for non-marital purposes may be assigned solely to that individual.

This approach allows for flexibility in tailoring property division to each case’s specific circumstances. Our New Jersey equitable distribution lawyers are also familiar with community property laws and can explain them in detail.

What Happens to the Family Home?

The family home often carries significant emotional and financial value, making it a central issue in property division. If both spouses wish to keep the home, the court will consider who has primary custody of any children, the financial ability to maintain the property, and whether the home can be equitably divided.

In many cases, one spouse may buy out the other’s share of the home or agree to sell the property and split the proceeds. Alternatively, the court may award the home to one spouse while allocating other assets to balance the distribution.

Family home decisions should account for immediate and long-term financial implications, including mortgage payments, taxes, and maintenance costs.

Are Retirement Accounts Divided During Divorce?

Retirement accounts are often among the most valuable marital assets. In New Jersey, if contributions were made during the marriage, these accounts are subject to equitable distribution. This applies to pensions, 401(k) plans, IRAs, and similar accounts.

Dividing retirement assets typically requires a Qualified Domestic Relations Order (QDRO), allowing funds to be distributed without tax penalties. The court will evaluate the length of the marriage and the contributions made by each spouse to determine how to divide these accounts fairly.

Our New Jersey equitable distribution lawyers can explain the long-term financial impact of dividing retirement assets and assist with valuing and transferring these funds appropriately.

How Are Debts Divided in Equitable Distribution?

Debts incurred during the marriage are generally considered marital liabilities and are subject to equitable division. This can include mortgages, credit card balances, car loans, and other obligations.

The court will evaluate the purpose of the debt and who benefited from it to determine how it should be allocated. For example, if one spouse used a credit card for personal expenses unrelated to the marriage, they may be solely responsible for that debt. Similarly, joint debts such as a mortgage may be divided in proportion to each spouse’s financial ability to pay.

Accurate financial records are essential in resolving disputes over debt division, as they clarify the origin and purpose of the liabilities.

What Role Do Prenuptial Agreements Play in Equitable Distribution?

A prenuptial agreement can significantly impact the division of property during a divorce. These agreements allow couples to specify how assets and debts will be handled in the event of a divorce, often overriding the default rules of equitable distribution.

For a prenuptial agreement to be enforceable, it must meet certain legal requirements, including full financial disclosure by both parties and the absence of coercion or fraud. If the court finds the agreement valid, it will use its terms to guide property division. However, if the agreement is invalid, the court will proceed with equitable distribution according to state law.

Let the Skilled New Jersey Equitable Distribution Lawyers at Sanvenero & Cittadino Attorneys at Law Fight to Protect Your Financial Interests

Dividing marital assets and debts during a divorce requires a thoughtful approach to achieve fairness and safeguard your interests. You can turn to our seasoned New Jersey equitable distribution lawyers at Sanvenero & Cittadino Attorneys at Law to fight to protect what is yours. Call 732-743-9665 for a free consultation or submit our online form. Located in Red Bank, New Jersey, we proudly serve clients throughout Monmouth County, Middlesex County, and Ocean County.