Dividing property is one of the most important aspects of a divorce. In Bergen County, New Jersey, this process is governed by “equitable distribution.” This does not mean assets are split evenly, but rather fairly based on each spouse’s circumstances. Understanding how marital property is defined and divided can help spouses prepare for the process and make informed decisions.
Key Takeaways:
- Marital property includes assets and debts acquired during the marriage.
- New Jersey uses equitable distribution, not equal division.
- Separate property may remain unless commingled.
- The marital home may be sold or awarded to one spouse.
- Retirement accounts are often subject to division.
- Agreements can simplify the process.
What Is Considered Marital Property in New Jersey?
“Marital property” generally includes assets and debts acquired during the marriage. This can include homes, vehicles, bank accounts, retirement savings, and business interests. “Separate property” typically includes assets owned before the marriage, as well as certain inheritances or gifts received individually. However, ‘separate property’ can become marital if it is mixed with shared assets.
How Does Equitable Distribution Work?
New Jersey courts divide property based on what is fair, not necessarily equal. Judges consider factors such as the length of the marriage, each spouse’s contributions, and their financial circumstances after divorce. The goal is to reach a balanced outcome that reflects both spouses’ roles and future needs.
How Are Debts Divided in a Divorce?
Marital “debt” is typically divided under the same equitable principles as assets. This can include mortgages, credit cards, and personal loans. Even if a debt is in one spouse’s name, it may still be considered marital if it benefited the household.
What Happens to the Marital Home?
The “marital home” is often one of the most valuable assets. One spouse may keep the home and buy out the other’s interest, or the home may be sold and the proceeds divided. In some cases, one spouse may remain in the home temporarily.
How Are Retirement Accounts and Investments Divided?
Retirement accounts and investments are commonly subject to division. Portions earned during the marriage are typically divided, often requiring specific legal procedures. Investment accounts are also evaluated based on value and ownership.
Can Spouses Reach Their Own Property Agreement?
Yes. Many spouses negotiate a property settlement agreement instead of going to court. Reaching an agreement can provide more control and may reduce time and cost. Once finalized, the agreement becomes part of the divorce judgment.
What Happens if Spouses Cannot Agree?
If spouses cannot agree, the court will decide how property and debts are divided. This may involve financial disclosures, valuations, and hearings. “Contested” cases often take longer and require more detailed review.
Frequently Asked Questions:
Is everything split 50/50 in a New Jersey divorce?
No. Property is divided fairly, not equally.
Can separate property become marital property?
Yes, if it is commingled or used for marital purposes.
Who decides how property is divided?
Spouses can agree, or the court will decide.
Are debts divided the same way as assets?
Yes, marital debts are also divided under equitable distribution.
Our Bergen County Divorce Lawyers at Torchin Martel Orr LLC Help Build Fair Outcomes During the Divorce Process
Marital property division can have long-term financial consequences. Understanding how equitable distribution works in Bergen County can help spouses approach the process with confidence. Working with our Bergen County divorce lawyers at Torchin Martel Orr LLC can help you navigate these issues and move forward. For an initial consultation, call today at 201-971-4866 or contact us online. Located in Paramus, New Jersey, we proudly serve clients throughout the state.