New Jersey Property Division | NJ Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

When a couple gets divorced, the courts have to sort out everything from the ending marriage. One of the most important tasks a court must perform is property division, specifically New Jersey property division.

No divorcing couple should discount the guidance of a licensed Family Law attorney. Property division laws can be complex and lawyers have the proper training/experience to tell the judge what a divorcing spouse wants and/or needs from the property division.

Property Division Divorce Laws in New Jersey

The purpose of New Jersey property division laws is to make sure that marital property is allocated to each spouse equitably. New Jersey marital property is divided under the considerations of New Jersey Statute §2A:34-23.1 but the trial court judge receives great discretion when converting New Jersey marital property into separate New Jersey divorce property.

New Jersey is an equitable distribution state. This means that with regard to New Jersey divorce assets, anything the spouses brought into a marriage usually will not be included in New Jersey divorce assets or New Jersey divorce property. The only property that comes into the court's distribution is that which is legally classified as property of the marriage subject to New Jersey Statute §2A:34-23.1.

What is considered Marital and Non-Marital Property?

Marital property consists of all items acquired by either spouse during a marriage as well as separate items that were brought into a marriage and later converted into marital property.

Under New Jersey case law, assets acquired during the marriage are presumed to be part of marital property unless proven otherwise.

Non-marital property consists of property that each spouse had before the marriage or acquired individually without including it into the marital property. This may also include property deemed separate under an agreement between the spouses.

In the end, the trial judge will decide which of the spouses' property is marital vs. non-marital.

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The final step is the allocation of marital property.

Under New Jersey Statute §2A:34-23.1, the court considers a number of factors in dividing assets and debt. Some of these are:

The marriage's length
The parties' age & health
The contribution of each party to the marital property
The parties' economic circumstances
Tax consequences

Using statutory factors, judges decide how a marriage's assets should be divided. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equitably among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely award part of the money to each spouse.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount may be divided in a 50-50 split or may be more balanced if the $1,000 contributor has fewer assets than the $4,000 contributor.
Retirement Plans: Divided based on the duration of the marriage at the time the benefits accrued, looking at the present value of the plan and/or survivor benefits.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would be entitled to a portion of the retirement plan that was acquired during the marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values at the date determined by the court. May be sold or given to a spouse outright.
- Example 1: A car is owned by a spouse The car may be sold with the proceeds to be given to a poorer spouse or divided among the spouses in some way.
- Example 2: A boat has a shared title. The boat may be sold with the proceeds going to each spouse equally or given to a poorer spouse.
Insurance: Determined based upon each spouse's health, availability of alternate insurance and premium payments from marital income.
- Example 1: One spouse has covered the other under employer provided health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time and/or award money to the ailing spouse to get new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. The court may order this to continue if the spouse has no other insurance or award the spouse a portion of the benefits.

Settling Disputes in a Divorce Case with Property and Asset Division

Under New Jersey case law, a property division order is final and can not be changed unless there are exceptional and compelling circumstances that would require a change for the sake of fairness and justice. However, you may go to court to get a property division order enforced if a spouse is not complying with it.

The trial court's determinations will not be changed by an appellate court unless there is clear evidence of an abuse of discretion.

Help From a New Jersey Property Divorce Lawyer

Retaining a New Jersey property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

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