During a divorce, many important topics have to be addressed and decisions must be made. One of the most important factors in a divorce is the distribution of property. While some states split assets 50/50, others rely on equitable distribution. For more information and representation during this complex time, work with an experienced Mountainside property distribution attorney.
What is Equitable Distribution?
Equitable distribution refers to a fair division of property. In an equitable distribution state, a couple’s marital property will not be necessarily divided equally between the parties. Instead, a court will consider all aspects of each spouse’s financial situation before determining a fair and equitable way to distribute bank accounts, real estate, and other shared property. New Jersey is an equitable distribution state.
This is the opposite of a community property state. In a community property state, each spouse will be awarded exactly half of the marital assets, regardless of personal factors like income, earning capacity, etc.
Marital vs Separate Assets
When dividing property between spouses in a divorce it is important to understand that only marital assets are subject to distribution. Marital assets are jointly owned by both spouses while separate assets are any property owned by only one.
When two people are married, most of the assets they accumulate throughout their relationship automatically become joint property. Income gained during the relationship becomes marital property, and any assets or property acquired using marital funds is considered jointly owned and divisible in a divorce.
Although most assets are marital property, each spouse may have some separate assets. This may include property already owned before the marriage or acquired through inheritance. However, even these assets can become jointly owned if marital funds or the other spouse contributed to the property in any way.
Do Assets Get Split 50/50 in NJ?
The amount that each spouse is awarded in a divorce varies depending on the specific circumstances and relationship. Because New Jersey is an equitable distribution state, assets will never be automatically split 50/50 between parties. However, if an equal distribution is fair then it is a possibility.
Otherwise, a court will evaluate various factors related to the couple before determining how much each spouse should be awarded. The following and more will be considered.
- Each spouse’s income
- Each spouse’s earning capacity
- The age and health of each spouse
- The length of the marriage
- The value of the property
- Whether one spouse will receive spousal support
- Whether one spouse will lose health insurance after the divorce
After considering all of the above and other important aspects of each individual’s life, a court will issue a ruling over who gets what property. It is important that the decision ensures one spouse is not left at a significant disadvantage after assets are distributed.
Reach out to an experienced attorney to learn more about your rights and options during your divorce.
