How Do I Protect My Assets During a Divorce?
Divorce is never easy. When a couple gets divorced, not only must they grapple with the emotional reality of having to start a new chapter in life, but there are also many practical issues that will need to be resolved before a divorce is finalized. One of the most common concerns divorcing spouses have is who gets to keep the house in their divorce. Continue reading and reach out to a knowledgeable and dedicated Mercer County divorce lawyer from The Law Office of Rachel S. Cotrino, LLC to learn more. Here are some of the questions you may have:
Is a House Considered Marital Property in New Jersey?
In many situations, yes.
New Jersey follows what’s known as “equitable distribution,” which means marital assets are divided fairly, though not necessarily equally, when a couple divorces. Whether a house is considered marital property depends on several facts surrounding the ownership of the property.
A home may be considered marital property if:
- It was purchased during the marriage.
- Marital income was used to pay the mortgage.
- Both spouses contributed to maintenance or improvements.
- The property increased in value during the marriage due to joint efforts.
A home may be considered separate property if:
- One spouse owned it before the marriage.
- It was inherited by one spouse individually.
- It was received as a gift intended solely for one spouse.
However, matters are not always straightforward. Even when a home began as separate property, it can become partially marital if marital funds were used to pay expenses related to the property or if both spouses contributed to its appreciation in value.
Will I Get to Stay in My House in a Divorce?
Possibly, but there is no automatic rule that guarantees one spouse will keep the home.
Courts consider numerous factors when determining what should happen to a marital residence. In many cases, spouses negotiate a settlement that addresses ownership of the property before a judge ever has to make a decision. A spouse may be more likely to remain in the home when:
- Minor children primarily reside with that parent.
- The spouse can afford future mortgage payments and upkeep.
- The parties agree that one spouse will buy out the other’s interest.
- Remaining in the home serves the children’s best interests.
Some common outcomes include:
- One spouse keeps the home and refinances the mortgage.
- The home is sold and the proceeds are divided.
- The spouses continue co-owning the property for a temporary period.
- One spouse buys out the other’s share of the equity.
What If We Can’t Agree on Who Gets to Keep the House?
When spouses cannot reach an agreement, the court may ultimately decide what happens to the property.
A judge will evaluate the facts of the case and determine a fair outcome under New Jersey’s equitable distribution laws. The goal is not necessarily to split everything down the middle. Instead, the court seeks a result that is equitable based on the circumstances of the marriage. When deciding how to handle a marital home, a court may consider the following:
- The length of the marriage.
- Each spouse’s financial condition.
- Contributions made by each spouse during the marriage.
- The needs of any children involved.
- The value of the property and any outstanding debt.
- Each spouse’s ability to maintain ownership moving forward.
In some situations, the court may order the property sold if neither spouse can reasonably afford to keep it or if selling the home represents the fairest solution.
Since a family home is often one of the largest assets involved in a divorce, decisions regarding ownership can have long-lasting financial consequences. If you are concerned about protecting your interests and understanding your options, please don’t hesitate to contact The Law Office of Rachel S. Cotrino, LLC for comprehensive representation today.
