Navigating the complexities of a divorce requires careful consideration of all financial matters. Understanding how specific assets are characterized is crucial for anyone who is in the process of terminating their marriage. To better understand how New Jersey courts treat inheritance in a divorce, continue reading and consult with a skilled Union County property division attorney today.
Is NJ an Equitable Distribution State?
Yes, New Jersey is an equitable distribution state. This means that during a divorce, marital assets are not necessarily divided equally, but rather in a way that the court deems fair and just under the circumstances of the case.
The court considers numerous factors when determining an equitable distribution, including the length of the marriage, the age and health of each spouse, their incomes and earning capacities, and the contribution of each party to the marriage. The goal of equitable distribution is to ensure a fair economic outcome for both parties.
What is Considered Inheritance?
Inheritance is any asset that a person receives from a deceased individual, typically through a will or the distribution of an estate. This could include money, real estate, personal property, investments, and other valuable property.
How Do NJ Courts Treat Inheritance in a Divorce?
In New Jersey, inheritance is generally treated as separate property and is not subject to equitable distribution during a divorce. This means that if a spouse received an inheritance before or during the marriage, the law typically protects that asset from being divided between the divorcing parties. The court considers the inherited property to belong solely to the spouse who inherited it.
To maintain its status as separate property, the inheritance must be clearly traceable and kept distinct from marital assets. It is crucial for the receiving spouse to avoid using the funds or assets for marital purposes, such as depositing inherited money into a joint bank account or using it to purchase property titled in both names. Failure to maintain this separation can lead to the asset becoming “commingled.”
What is Commingling?
Commingling occurs when separate property, such as an inheritance, is mixed with marital assets to the point where it loses its distinct and separate status. In a divorce, this typically happens when inherited funds are deposited into a joint bank account, used to pay marital debts, or used for purchasing jointly titled property like the marital home.
Once commingled, the inheritance may be reclassified by the court as a marital asset and be subject to equitable distribution. The spouse who wants to protect the inherited asset bears the burden of proof to trace the funds. If they cannot be clearly separated from marital property, the asset may be divided between both parties.
For more information and legal advice, contact an experienced family law attorney today.
