In a New Jersey divorce, equitable distribution refers to the fair division of marital property between spouses. New Jersey follows this principle instead of simply splitting everything 50-50.
The goal is to divide assets and debts in a way that is fair, though not necessarily equal.
Defining marital property
The first step in equitable distribution is identifying what counts as marital property. Marital property includes all assets and debts acquired during the marriage, regardless of which spouse’s name is on the title or account. Some examples include homes, vehicles, bank accounts, retirement funds and even debts like credit cards or loans. However, property acquired before the marriage or through inheritance or gifts usually remains separate and is not subject to division.
Determining how to divide property
The court considers several factors to determine how to fairly divide marital property. These factors include the length of the marriage, each spouse’s income and their contributions to the marriage. The court may also look at each spouse’s age, health and the value of the property up for division.
Understanding the difference between “equitable” and “equal”
It is important to note that equitable distribution does not necessarily mean equal distribution. One spouse may receive a larger share of the assets if the court determines it is fair based on the circumstances. For example, if one spouse earned significantly more during the marriage or will have greater financial resources after the divorce, the other spouse may receive a larger portion of the marital assets.
Equitable distribution aims to provide a fair solution for both spouses while considering the unique situation surrounding the marriage. By doing so, New Jersey courts strive to ensure that neither party is at a disadvantage as they move forward after the divorce.