When people get divorced in New Jersey, they have to divide the things they own and the money they owe. This process is called Equitable Distribution. “Equitable” means fair, but it does not always mean each person gets exactly half.
What Does Equitable Distribution Mean?
New Jersey sees marriage as a partnership. Both people contribute to the marriage, so both should get a fair share of what they gained during that time. The law and courts help decide what is fair.
There are three main steps:
- Figure out what property belongs to the marriage
- Find out how much each item is worth
- Decide how to divide everything fairly
What Counts as Marital Property?
Marital property is anything either spouse gets during the marriage. This can include:
- Houses or apartments
- Cars
- Jewelry
- Pensions and retirement accounts
- Stocks and bonds
- Gifts or inheritance received while married
Anything someone owned before the marriage usually stays that person’s separate property, unless the other spouse helped it grow in value.
Sometimes figuring out the value of property is complicated. For example, if the couple owns a house, an appraiser might be hired to decide how much the house is worth.
Courts also look at many things when deciding what is fair, such as:
- How long the couple was married
- Their ages and health
- Their lifestyle during the marriage
- How much money each person makes
- How each person contributed to the marriage
Debts Must Be Divided Too
Couples don’t only share things they own—they often share debts, too, and the debts must also be divided. Debts that are directly related to the purchase of marital property are subtracted from the value of the property that was purchased with that debt, and then the balance is divided. For example, if the couple has $100,000 in property and $25,000 in debt to acquire the property, the debt might be taken out first, leaving $75,000 to divide.
But other debts may be part of the total economic circumstances when determining who should be responsible for which debt. These decisions are dependent on the specific facts of the case.
Some of the factors the Courts look at include:
- Who makes more money
- Each person’s financial needs
- What the debt was used for
Sometimes one spouse may be asked to pay more of the debt if it is fair to do so.
Special Situations
Usually, equitable distribution happens only when the divorce is final. But in rare cases, like if a spouse dies before the divorce is complete, the court may still divide the property. If a couple divorces in another country, New Jersey might not divide the property unless New Jersey has a strong connection to the marriage.
Final Thought
Divorce can be stressful and emotional. In the end, the goal is to divide things in a fair way—even if that means letting go of something as beloved as an air fryer.
