Individuals preparing for divorce in New Jersey are often anxious about the future. They don’t know what to expect, and they may worry about how divorce could affect their circumstances.
Divorce can be expensive and may force people to make difficult decisions regarding their financial resources and obligations. Unless the couple divorcing has already reached an agreement about property division matters, the spouses either have to negotiate a settlement before they go to trial or have a judge apply state law to their property.
New Jersey has an equitable distribution statute that applies in contested divorce scenarios. What does the equitable distribution process typically involve?
Equitable means fair, not equal
The one thing many people get wrong about equitable distribution is that they conflate it with community property rules. In many states with community property laws, the courts divide marital property equally between the spouses.
Equitable distribution does not typically involve a 50/50 split of property and debts. Instead, judges look carefully at family circumstances to find terms that are fair based on unique details. Some of the factors that influence equitable distribution proceedings include how long the marriage lasted, the health of the spouses, custody arrangements for their children, separate property and even earning potential.
The paid and unpaid contributions each spouse made to the family can also influence what a judge ultimately believes is fair and reasonable. Equitable distribution rules typically apply to all marital income, assets and debts. Money earned by either spouse, property acquired by the spouses and debts taken on during the marriage all contribute to the marital estate.
Judges have quite a bit of discretion when deciding how to split financial obligations and resources between divorcing spouses. In scenarios where people feel strongly about securing specific terms, it may be beneficial to try to negotiate a settlement. Provided that they agree to compromises on other terms, they may be able to secure certain concessions regarding the division of specific assets or debts.
Learning more about New Jersey’s approach to property division can take some of the fear and uncertainty out of an upcoming divorce. Equitable distribution rules leave much to the discretion of a judge in a contested divorce, but their intention is to establish a fair property division settlement.