New Jersey: An Equitable Distribution State for Divorce

Understanding property division in a divorce case can be a complex issue, and it varies significantly from state to state. This guide is intended to provide you with a fundamental grasp of property division in a New Jersey divorce case.

Marital Property versus Non-Marital Property in New Jersey

New Jersey follows the equitable distribution principle, meaning marital property is divided fairly – not necessarily equally.

Although your case may result in an approximate 50/50 split, the court’s decision depends on factors such as each spouse’s financial and non-financial contributions, the length of the marriage, and each party’s economic circumstances.

In New Jersey, marital property encompasses anything acquired during the marriage using income earned during the marriage, irrespective of whose name the asset is in.
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Non-marital property, on the other hand, is not included in the marital estate and will not be divided by the court during a divorce. The individual who owns the non-marital asset will retain it after the divorce.
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The standard protocol in a New Jersey divorce is that the court will assess and divide the "marital" property of the spouses, while each party keeps their non-marital property.

When dividing the marital property, the court aims to ensure equity, striving to make the division of marital property fair for both parties. This does not necessarily mean an identical split, but a division such that each party is treated fairly and leaves the divorce with a comparable share of the marital estate.

Marital property is divided by the court in a New Jersey divorce. The New Jersey Statute 2A:34-23.1 details what comprises marital property, which includes:

Assets obtained during the marriage. Any property or asset acquired during the marriage is deemed marital property, regardless of whether one or both spouses acquired it. For example, if a husband purchases an antique car during his marriage, the car will be deemed marital property, even if it was bought solely with his income and only his name is on the title.

Gifts exchanged between spouses during the marriage. When one spouse gifts something to the other, it is regarded as marital property. For instance, if Tom gifts Cindy a car for their tenth anniversary, irrespective of whose money was used or whose name is on the title, the car can be considered marital property and subject to court division.

Real and personal property held as Tenants by the Entireties. If a couple holds property as Tenants by the Entireties, then that property is presumed to be a marital asset. Tenants by the Entireties is a unique form of real estate ownership available only to married couples in New Jersey. For a property to be held as tenants by the entireties, it must meet several conditions such as joint control and ownership, identical interest in the property for both spouses, property acquired during the marriage, interest granted by the same instrument, and simultaneous commencement of interest.

Non-marital property in New Jersey includes assets acquired before marriage, property received as a gift or inheritance from a non-spouse, income from non-marital assets, and property excluded by a legally binding prenuptial or postnuptial agreement.

Liabilities

In a divorce, not only are assets and property divided, but also the debts and liabilities of the spouses. These are classified as either non-marital or marital liabilities, based on who incurred the debt and when. If a liability is considered non-marital, the spouse who incurred the debt will be solely responsible for it after the divorce. Conversely, if the liability is considered marital, the court may order that both parties continue paying it jointly or that some marital assets be sold to satisfy the debt.

Note: Always check with a legal advisor to understand the current laws and regulations in your state, as they can change over time.