Division of Property in New Jersey Divorce Cases

November 27, 2012 (Press-News.org) Every divorce has its own unique set of conflicts and confusions. In many New Jersey divorces, though, the couple disagrees on how to divide their marital assets and liabilities. This type of conflict is especially likely for couples who have been married for a long time or who have accumulated a significant amount of property or debt during their marriage.

In some cases, couples are able to resolve this dispute, either on their own or with the help of a divorce lawyer or mediator. If that cannot be done, the case will go to court and a judge will decide how the couple's assets and liabilities should be divided.

What is Marital Property?

Before deciding how to divide the couple's property, the judge will decide what qualifies as "marital property" and what is "separate property." Marital property will be divided, while separate property will stay with its owner.

Generally speaking, nearly all assets and debts accrued during the marriage count as marital property. Marital property can include things like personal property, bank accounts, real estate, investments, retirement and pension accounts, family-owned businesses, personal injury awards, credit card debts and bank loans. These items are considered to be shared property even if they are only in one person's name.

Separate property is relatively limited in scope and usually only includes assets or liabilities that belonged to one of the spouses prior to the marriage. However, it is important to note that a lot of previously separate property can become jointly owned over the course of a marriage. For example, adding a spouses name to the title on a house that was owned before the marriage or depositing an inheritance into a joint bank account can change the status of the property.

How is Marital Property Divided?

Like most states, New Jersey follows a rule of "equitable division" in property division cases. This means that the judge will attempt to divide the couple's assets and liabilities in the way that is most fair given the unique circumstances of their case. "Equitable" does not necessarily mean "equal."

New Jersey law requires judges to use a number of factors when determining how to equitably divide marital property. They include the following:
- How long the marriage lasted
- Each spouse's age
- Each spouse's physical and emotional health
- How much each spouse earned during the marriage, and the spouse's comparative earning potentials after the marriage
- Whether the couple has a written agreement regarding property division
- Whether the spouse retaining custody of the children needs to stay in the family home
- Expected future educational or medical costs for the couple's children
- Any other considerations the court finds relevant

Because the property division process is so unique to the individual circumstances of each case, it is important to consult with a New Jersey divorce attorney who can help you define your goals and achieve your preferred outcome.

Article provided by Law Offices of Douglas I. Krompier MBA LLC
Visit us at www.krompierlaw.com/