Dividing assets during divorce can be a complex and often contentious process, especially when it comes to houses and property of high value. In New Jersey, debt and asset division is settled based on equitable distribution, meaning that marital assets are divided between spouses in a fair and equitable way. When a couple shares one or more vacation homes they must be divided during the divorce. Continue reading to learn more about your rights and legal options and contact an experienced Mountainside property distribution attorney for representation.
Is a Vacation Home Joint or Separate Property?
The way that vacation homes are divided during a divorce in New Jersey depends on whether the home is considered marital or separate property. In general, a vacation property will be considered shared if either spouse purchased the property using their income or marital funds. Even if one spouse owned the home before the marriage, if the other spouse contributed to the property in any way it will be considered a marital asset. This can be true if the other spouse paid for renovations, did cleaning and maintenance, joint incomes were used to fund projects around the home, etc.
Even if only one spouse’s name is on the deed, it can be considered a joint asset if marital funds or resources were used to maintain or improve the property.
What is Equitable Distribution?
Equitable distribution is the process of dividing assets and debts in a way that is fair to both spouses. This does not necessarily mean a 50/50 equal split. A court will take into account various factors when deciding how to divide the property in a way that does not financially devastate one party over the other and that ensures fair distribution. Some factors considered include:
- The length of the marriage
- The financial contributions of each spouse to the marriage
- The non-financial contributions of each spouse to the marriage
- The value of the property
- The income and earning capacity of each spouse
- The age and health of each spouse
The above and more can aid a court in deciding what the fairest way to divide property will be.
How Are Vacation Homes Divided in an NJ Divorce?
There are several ways that a vacation home can be divided in a New Jersey divorce to ensure equitable distribution between parties. Depending on the specific circumstances of the couple and family, any of the following may be the best solution.
- Sell: The couple could sell the vacation home and divide the proceeds from the sale between the two of them in an equitable way.
- Buy out: One spouse can buy out the other if they wish to keep the property. They can determine what the home is worth and what each spouse’s share of the profit would be.
- Co-ownership: Spouses may agree to continue co-owning the property after the divorce, though this sort of arrangement can be complicated.
- Sole ownership: It may also make sense to simply award one spouse the home. One spouse could request the property in exchange for additional assets that they otherwise would have received.
For more information on your legal rights and options, reach out to an experienced attorney today.
