It's Not Just 50/50: Understanding New Jersey's 'Equitable Distribution' Principle

How assets are divided is one of the most sensitive and critical issues in a divorce. Many people assume property division means a strict 50/50 split, but that is not the case in New Jersey. Our state follows the legal principle of 'Equitable Distribution'.

The word 'equitable' does not mean 'equal'. It means the court will divide property in a way that is fair and just, considering the specific circumstances of each couple, rather than mechanically splitting everything in half.

What Gets Divided? - Marital Property

First, the court must identify the 'marital property' subject to division. Marital property includes all assets acquired by either spouse during the marriage. This can include:

• The family home, cars, and other real and personal property
• Bank accounts, stocks, and other financial assets
• Retirement accounts (401ks, IRAs, Pensions)
• A business that was started or increased in value during the marriage
• A portion of the increase in value of pre-marital assets

In contrast, assets owned before the marriage, or received as gifts or inheritances by one spouse, are generally classified as 'Separate Property' and are not subject to division.

Factors the Court Considers for an 'Equitable' Split

To divide the marital property fairly, the court will carefully review a wide range of factors, such as:

• The duration of the marriage
• The age and health of both spouses
• The income, property, and debts of each party
• The standard of living established during the marriage
• The earning capacity and education level of each party
• The contributions of each spouse to the marriage (non-financial contributions, like being a homemaker or raising children, are given significant weight.)
• The financial needs of the parent with custody of the children

Property division is a crucial process that will determine your quality of life after the divorce. To ensure your contributions are fairly recognized and you secure your equitable share, the assistance of a skilled attorney who can meticulously identify assets and argue your case based on legal precedent is indispensable.