Wilson Family Law LLC, 667 Shunpike Road, Suite 5, Chatham, NJ 07928
A substantial consideration when getting divorced is how the assets accumulated during the marriage will be divided. It is crucial to understand what is considered marital property in New Jersey, which will be subject to division in your divorce. Marital property is defined as the assets and debts acquired during the course of your marriage, beginning one the date of marriage until the date the complaint for divorce is filed. This may include the marital residence, bank and retirement accounts, pensions, investments, vehicles, business ventures, furniture, jewelry, personal property, and debt accumulated during the marriage. In the state of New Jersey, marital property is not automatically divided 50/50, rather it is divided equitably based on many factors. N.J.S.A. 2A:34-23.1 sets forth the equitable distribution criteria that a court would consider when splitting marital property:
a. The duration of the marriage or civil union;
b. The age and physical and emotional health of the parties;
c. The income or property brought to the marriage or civil union by each party;
d. The standard of living established during the marriage or civil union;
e. Any written agreement made by the parties before or during the marriage or civil union
concerning an arrangement of property distribution;
f. The economic circumstances of each party at the time the division of property
becomes effective;
g. The income and earning capacity of each party, including educational background,
training, employment skills, work experience, length of absence from the job market,
custodial responsibilities for children, and the time and expense necessary to acquire
sufficient education or training to enable the party to become self-supporting at a
standard of living reasonably comparable to that enjoyed during the marriage or
civil union;
h. The contribution by each party to the education, training or earning power of the other;
i. The contribution of each party to the acquisition, dissipation, preservation, depreciation
or appreciation in the amount or value of the marital property, or the property acquired
during the civil union as well as the contribution of a party as a homemaker;
j. The tax consequences of the proposed distribution to each party;
k. The present value of the property;
l. The need of a parent who has physical custody of a child to own or occupy the marital
residence or residence shared by the partners in a civil union couple and to use or own
the household effects;
m. The debts and liabilities of the parties;
n. The need for creation, now or in the future, of a trust fund to secure reasonably
foreseeable medical or educational costs for a spouse, partner in a civil union couple
or children;
o. The extent to which a party deferred achieving their career goals; and
p. Any other factors which the court may deem relevant.
Some assets may remain separate, non-marital property that are not subject to division during a divorce. This may include property owned before the marriage, gifts specifically given to one spouse, and inheritances received by one spouse. This separate property must be properly documented and clearly kept separate from the marriage. Furthermore, it can become marital if “commingled” by adding your spouse's name to an account, using inherited funds towards joint assets, or depositing funds into a joint account. One rationale is that once these assets become “comingled,” then it has contributed to the standard of living established during the marriage and is now marital property.
It is imperative to understand what is considered marital property when getting divorced. The State of New Jersey considers many factors when dividing your assets. However, if both parties are willing to negotiate and keep the case out of the courts, there is the opportunity for creativity when working together to divide your assets. The goal is to find a way for both parties to have a say in how the assets will be divided, rather than letting a court decide.
Sources: https://law.justia.com/codes/new-jersey/title-2a/section-2a-34-23-1/
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Wilson Family Law LLC
667 Shunpike Road, Suite 5
Chatham, NJ 07928
Office: 973-520-4275 Fax: 973-378-0603
email: cindy@wilsonfamilylawllc.com
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