How is Property Divided in a New Jersey Divorce?

If you’re about to get a divorce, one of your top concerns is likely how your marital property will be divided. This is understandable, as you’ve worked hard for your assets. Unfortunately, unless you have a prenuptial agreement in place, your marital property will be subject to equitable distribution. Continue reading and reach out to the skilled divorce lawyers in Sussex County here at Gruber, Colabella, Thompson, Hiben & Montella to learn more about how property is divided in a New Jersey divorce and how our team can help protect your assets. Here are some of the questions you may have:

What Does Equitable Distribution Mean in New Jersey?

In New Jersey, courts follow what is known as equitable distribution, which, put simply, means that property is divided fairly, though not necessarily equally. Many people assume that everything will be split right down the middle, but this is not always the case. When courts apply equitable distribution, they will generally:

• Determine which assets and debts are considered marital property
• Assign a value to those assets, sometimes with the help of financial professionals
• Distribute those assets in a way that they believe is fair under the circumstances

Marital property typically includes most assets acquired during the marriage, regardless of whose name is on the account or title. Because of this, even if one spouse earned significantly more than the other, both parties may still have a claim to those assets.

What Property Is Subject to Division?

Not all property is treated the same in a New Jersey divorce, and understanding the difference between marital and separate property is essential before moving forward. Generally speaking, marital property can include the following:

• Income earned by either spouse during the marriage
• The marital home and any other real estate purchased while married
• Retirement accounts, pensions, and investment portfolios accumulated over time
• Businesses that were started or grew during the marriage
• Debts incurred during the marriage, including loans and credit card balances

On the other hand, separate property may include assets that are not subject to division, such as:

• Property owned by either spouse prior to the marriage
• Inheritances or gifts given specifically to one spouse
• Certain personal injury awards

That being said, it is important to understand that separate property can sometimes become marital property, particularly if it was commingled with marital funds. For example, if inherited money is deposited into a joint account and used for shared expenses, it may no longer be considered separate.

What Factors Do Courts Consider When Property is Divided in a Divorce?

Once the court determines what qualifies as marital property, it will then look at a range of factors to decide how that property should be divided. This is where things often become more nuanced, as no two divorces are exactly alike. Courts will commonly consider:

• The length of the marriage and how financially intertwined the spouses became over time
• Each spouse’s income, earning ability, and overall financial situation
• Contributions made by each spouse, including raising children or supporting a partner’s career
• The standard of living established during the marriage
• Any valid prenuptial or postnuptial agreements
• The potential tax consequences of dividing certain assets

In some cases, one spouse may receive a larger share of the marital assets, particularly if there is a significant difference in income or earning capacity. This does not mean the division is unfair, but rather that the court is attempting to reach a result that reflects the realities of both parties’ futures.

If you have additional questions or if you’d like to speak with a knowledgeable attorney about your case, please don’t hesitate to contact Gruber, Colabella, Thompson, Hiben & Montella for an initial consultation today.