New Jersey is an equitable distribution state. This means that assets, property, and debt that have been accumulated during the course of your marriage must be divided fairly and equitably. In some cases involving little to no assets and debts, the process of division can be very straightforward. However, many cases involve complex issues regarding questions about the value of assets, retirement accounts, investment properties, stocks and bonds, tax liabilities, mortgage loans, and the list goes on. Whether the issues are simple or complex, our family law attorneys have the knowledge and the experience to help you with the division of your marital assets and liabilities. Contact a skilled Mercer County property division lawyer from The Law Office of Rachel S. Cotrino, LLC for assistance today.
Asset Division & Debt Division in New Jersey
In New Jersey, marital property is not automatically split 50-50. Instead, marital assets are divided in a manner that is fair. New Jersey courts follow a three-step process to divide and to distribute assets.
First, the court will identify which assets are marital and, therefore, subject to distribution. Generally, marital assets are assets that were acquired by either or both spouses from the date of marriage to the filing of the divorce. Examples of such assets include the marital home, a business, bank accounts, automobiles, and pensions.
Second, the court will value the marital property for purposes of distribution. Depending on the assets involved, this step may be as simple as reviewing some bank statements or a complicated process that requires appraisers or accountants to value a business or other assets.
Third, pursuant to 2A:34-23.1(4), in making an equitable distribution of property, the court will consider, but is not limited to, the following factors:
- How long the marriage or civil union lasted;
- The age of each person, along with their physical and emotional condition;
- What income, assets, or property each person brought into the relationship;
- The lifestyle the couple maintained while they were together;
- Whether the parties entered into any written agreements—before or during the relationship—regarding how property would be divided;
- Each person’s financial situation at the time property division takes effect;
- The income and earning potential of each party, including factors such as education, job skills, work history, time away from the workforce, childcare responsibilities, and what it would take
- for that person to become financially self-sufficient at a similar standard of living;
- The extent to which either party contributed to the other’s education, training, or ability to earn income;
- Each person’s role in acquiring, maintaining, or impacting the value of marital or civil union property, including contributions made as a homemaker;
- The tax implications associated with dividing the property;
- The current value of the assets being divided;
- Whether the parent with primary custody of a child needs to remain in the shared home or retain household items;
- The debts and financial obligations owed by each party;
- Whether there is a need to establish a trust to cover anticipated medical or educational expenses for a spouse, partner, or children;
- The degree to which one party may have put their career on hold during the relationship; and
- Any additional considerations the court believes are relevant to reaching a fair outcome.
Contact a Property Division Lawyer in Mercer County, NJ
Our lawyers understand the factors that weigh with the court, and we will work to help you arrive at a fair arrangement regarding the equitable division of assets and liabilities. When your financial future depends on obtaining a reasonable court order, you need to work with a divorce lawyer who crafts a strategy which fits your goals. Contact a property division lawyer from The Law Office of Rachel S. Cotrino, LLC for an initial consultation today.
