Divorces are overwhelming and stressful as a lot is at stake including major child-related issues and the division of marital property. When it comes to the division of marital property, states either fall under community property or equitable distribution rules. Every state handles the way they divide marital property differently. In community property states, marital property is divided equally. In equitable distribution states, marital property is divided fairly. Unfortunately, marriages may fail due to certain circumstances. If you are seeking a divorce, contact one of our trusted Monmouth County Property Distribution Attorneys who can help you seek a fair portion of your marital property during the distribution of assets.
What is the difference between community property and equitable distribution states?
Essentially, the main difference between community property and equitable distribution states is that one divides marital property equally (50/50), while the other divides marital property fairly between both parties. Under the community property process, both parties receive an equal portion of their marital property. This is because any assets that were accumulated during the marriage are considered “community property,” owned by both parties. The process of equitable distribution on the other hand, divides marital property fairly and equitably, not necessarily equally. In equitable distribution states, the court evaluates pertinent factors to determine a fair split of marital property in a divorce. In some cases, the court may deem a 50/50 split is equitable, however that is not always the case. In both community property and equitable distribution states, marital property can only be divided. However, unless otherwise stipulated in a prenuptial or postnuptial agreement. Separate property also known as exempt property cannot be divided as it includes assets that were accumulated outside of the marriage. Separate property is not up for division in a divorce. Ultimately, the division of assets in either community property or equitable distribution states is extremely intricate. It is paramount for individuals to acquire the right legal representation to help them with the complex process of the division of assets in a divorce.
What does New Jersey fall under?
New Jersey is an equitable distribution state. This means that in a divorce marital property is divided fairly and equitably, but not necessarily equally. As mentioned above, under equitable distribution rules, the court will assess a number of components to determine a fair split of a couple’s marital property. The court will evaluate the following:
- The length of the marriage
- Both parties’ contributions
- The value of the property
- Both parties age and health
- Both parties earning capacity
- Any debts and liabilities of the parties
- Tax consequences of the proposed distribution
- And any other relevant and pertinent factors
In a divorce, the court will consider the above when determining an equitable division of property.
If you are seeking a divorce, please don’t hesitate to reach out to one of our determined attorneys who can help you seek a fair share of your marital property in the division of assets.