When a couple in New Jersey decides that their marriage is no longer working, they will likely consider divorce. In that divorce, they will have to address a number of factors, such as spousal maintenance and matters related to any children they share. One of the most frequently contested matters that may arise in a divorce is when it comes to dividing assets and debts. In New Jersey, assets and liabilities are divided through a process that is known as equitable distribution.
Equitable distribution is how New Jersey divides a divorcing couple’s property in a fair and just manner. There is a common misconception that equitable distribution means that the court will divide property evenly. However, this is simply not the case. Equitable only means fair, not equal.
Another important factor to be aware of is that only marital property will be divided in the divorce. Marital property is anything that was acquired during the marriage or was agreed at the beginning of the marriage to be considered marital property. Separate property, which is any property acquired before the marriage and agreed to remain separate, is not included in this property. There are some exceptions to both types of property. For example, if one spouse received an inheritance during the marriage but kept it in a separate account from marital funds, it is exempt from distribution.
If you have questions about dividing property in New Jersey, contact our firm today.
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