When your marriage sadly ends, so might the financial security that you have grown accustomed to. That is, the New Jersey family court may divide your property between you and your spouse, meaning you might have to part ways with certain significant assets for good. To prepare yourself for this fate, please continue reading to learn more about the system the courts use when dividing property and how an experienced Bergen County equitable distribution attorney at McNerney & McAuliffe can fight on your behalf for the share you rightfully deserve.
What system does New Jersey use when dividing property in a divorce?
New Jersey is not a community property state; otherwise, its courts would order 50/50 splits of property in divorce cases. Instead, the state’s family court operates under an equitable distribution system. Here, assets are divvied up in a way that is considered fair and just, and not necessarily even.
With that being said, there is a distinction between separate assets and marital assets here. The former are assets owned before the marriage, inheritances, and certain gifts given to only one spouse. This is while the latter are assets acquired by either spouse during the marriage, regardless of only one name being listed on the accounts or titles.
And so, you must understand that only marital assets are subject to the equitable distribution process. This is to say that you must provide the court with sufficient documentation of your separate property. Things may become complicated if you have commingled this property with your marital assets. For example, if you deposited an inheritance into a joint account.
How does the New Jersey court decide on what is a fair split?
In essence, the equitable distribution system acknowledges that most marriages do not function as strictly even financial partnerships; therefore, divorces should not be treated in this way, either. So, to determine a fair and just split, the New Jersey family will review both financial and non-financial contributions both spouses made during their marriage.
For example, one spouse may have taken on the role of the sole financial provider of the household. This is while the other spouse may have sacrificed their career opportunities to raise children, all while contributing non-financial labor, such as homemaking. In this instance, the court may recognize that a divorce may leave a greater economic impact on the stay-at-home parent.
In response, the court may equitably distribute pensions, 401(k)s, IRAs, and other retirement plans. Here, it does not matter if only one spouse’s name appears on these accounts, as the court believes both spouses contributed to the marital partnership during these earning years.
Further, the court may find that giving a larger share of these accounts to the stay-at-home parent may better support their future financial security. If you wish to gain more clarity on the situation you are dealing with, the best way to get it is by consulting with a skilled Bergen County family law attorney. Get in touch with our team at McNerney & McAuliffe today.