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Equitable Distribution

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Equitable Distribution of Assets & Liabilities

Sound Legal Advice for Splitting Up Assets in a New Jersey Divorce

The house. The retirement accounts. The business you built. When a marriage ends, deciding who keeps what can feel as overwhelming as the divorce itself. Apart from child custody and support, there is possibly no more divisive issue in a divorce than the fair and equitable distribution of assets and debts.

New Jersey is an equitable distribution state. That means marital property and debts are divided in a way that is fair, which is not always the same as equal. The law sets out what can be divided, but the real work is in identifying every asset, valuing it accurately, and separating what is “marital” from what is not.

Marital vs. Exempt Property

Marital Property

Marital property generally includes what either spouse acquired from the date of the marriage until the divorce complaint is filed, no matter whose name is on it. Examples include:

The marital home
Vacation homes and other investment real estate
Bank and investment accounts
Retirement accounts and pensions earned during the marriage
Business interests
Automobiles
Personal property and collectibles

Debts taken on during the marriage are divided as well.

Exempt (Non-Marital) Property

Exempt property generally includes what one spouse owned before the marriage, and gifts or inheritances that one spouse received individually from someone other than their spouse, even during the marriage.

That protection can change if exempt property is mixed with marital funds, or if it grew in value because of either spouse’s efforts during the marriage.

All financial assets must be disclosed, analyzed, and valued before informed decisions can be made about dividing them. An Adinolfi Roberto & Burick, PA matrimonial attorney will push for full disclosure and a fair distribution.

Resolving Property Issues In and Out of Court

Different interpretations of these property issues can create a grey area that often results in protracted and expensive litigation. Our lawyers can assist in negotiating settlement agreements outside of court. These agreements involve the input of both parties and resolve these issues without a trial. We have found these agreements to be more flexible than those a court might order, and they tend to prevent future disputes because neither spouse feels a settlement was imposed on them.

Our attorneys have the experience and resources needed to negotiate property settlement agreements in divorce, and in dividing same-sex marriage, civil union or domestic partnership assets, that are equitable and legally sound, as well as to take the investigative steps necessary to identify assets and liabilities.

A New Jersey divorce lawyer from Adinolfi Roberto & Burick, PA can also advise clients on the separation and protection of other assets, including business assets and retirement benefits, and on future tax implications. We handle both simple and complex asset division cases, with a focus on accurate, timely resolutions that serve our clients’ best interests.

Common Questions About Dividing Property in a New Jersey Divorce

Does “equitable” mean everything is split 50/50?

Not necessarily. New Jersey courts aim for a division that is fair given the circumstances of the marriage. Sometimes that is close to equal, and sometimes it is not. Most couples reach their own agreement rather than leaving the decision to a judge.

What happens to the house?

There are several common options: selling the home and dividing the proceeds, one spouse buying out the other’s share, or in some cases delaying a sale, for example while children finish school. The right choice depends on your finances and your goals.

How are retirement accounts and pensions divided?

The portion earned during the marriage is generally marital property, even if the account is in only one spouse’s name. Dividing it usually requires a special court order so that it can be split without tax penalties. Learn more about how retirement accounts are divided in a New Jersey divorce.

Is my inheritance protected?

Usually, if it was left to you individually and kept separate. If inherited money was deposited into a joint account or used for marital expenses, some or all of it may become subject to division.

What if we own a business?

A business started or grown during the marriage may be marital property. Valuing a business often calls for a financial expert, and there are ways to divide its value without dividing the business itself. Read about forensic accounting in divorce.

What if I think my spouse is hiding assets?

Both spouses must fully disclose their finances in a New Jersey divorce. When something doesn’t add up, we can use the legal discovery process and, where needed, forensic accountants to trace assets.

Are debts divided too?

Yes. Debts incurred during the marriage, such as mortgages, loans and credit card balances, are generally divided as part of equitable distribution, regardless of whose name is on the account.

For more, see our article: Are You Really Going to Take Half of My Jewelry?

If you have questions about dividing property in a divorce or about a property settlement agreement, contact our Mount Laurel office to schedule a confidential consultation with a South Jersey family law attorney.

Call 856-428-8334