Equitable Distribution of Marital Property

The New Jersey statute outlining how a judge will decide to divide up the marital property is worded in a way that is a little messy, so I broke it down into its component parts for you.

This will make it a whole lot easier for you to understand the law and then apply the facts of your case to the law.

"Equitable Distribution" is how property--both real estate and all other types of property--are distributed between the parties to a divorce case in New Jersey.

Note that "equitable distribution" is the exact opposite of equal distribution. In states that are "community property" states (like California and others), all marital property is automatically divided equally by law.

That is not the law in New Jersey.

Our law of marital property distribution says this:

A. In all actions where a judgment of divorce is entered the court may make such award to the parties to effectuate an equitable distribution of the property, both real and personal, which was legally and beneficially acquired by them or either of them during the marriage.

B. However, all such property, real, personal or otherwise, legally or beneficially acquired during the marriage by either party by way of gift, devise, or intestate succession shall not be subject to equitable distribution, except that interspousal gifts or gifts shall be subject to equitable distribution.

C. In making an equitable distribution of property, the court shall consider, but not be limited to, the following factors:

       1.The duration of the marriage;

       2.The age and physical and emotional health of the parties;

       3.The income or property brought to the marriage by each party;

       4.The standard of living established during the marriage;

       5.Any written agreement made by the parties before or during the marriage concerning an arrangement of property distribution;

       6.The economic circumstances of each party at the time the division of property becomes effective;

       7.The income and earning capacity of each party, including educational background, training, employment skills, work experience, length of absence from the job market, custodial responsibilities for children, and the time and expense necessary to acquire sufficient education or training to enable the party to become self-supporting at a standard of living reasonably comparable to that enjoyed during the marriage;

       8.The contribution by each party to the education, training or earning power of the other;

       9.The contribution of each party to the acquisition, dissipation, preservation, depreciation or appreciation in the amount or value of the marital property, or the property acquired during the marriage as well as the contribution of a party as a homemaker;

     10.The tax consequences of the proposed distribution to each party;

     11.The present value of the property;

     12.The need of a parent who has physical custody of a child to own or occupy the marital residence or residence shared by the partners in a civil union couple and to use or own the household effects;

     13.The debts and liabilities of the parties;

     14.The need for creation, now or in the future, of a trust fund to secure reasonably foreseeable medical or educational costs for a spouse or children;

     15.The extent to which a party deferred achieving their career goals; and

     16.Any other factors which the court may deem relevant.

D. The court shall make specific findings of fact on the evidence relevant to all issues pertaining to asset eligibility or ineligibility, asset valuation, and equitable distribution.

E. It shall be a rebuttable presumption that each party made a substantial financial or nonfinancial contribution to the acquisition of income and property while the party was married.

I think that "E" above is where you should focus your efforts a bit...a "rebuttable presumption" means that the Court will PRESUME that each party made a substantial contribution to the acquisition of marital property.

This means that if you earn the $$$ but your spouse doesn't work but takes care of the house and the kids, the Court must PRESUME that your spouse's contribution to the marriage, even though it doesn't directly generate $$$, was a substantial "non financial contribution to the acquisition of property".

This PRESUMPTION is why judges in NJ often distribute marital property equally.

Now the money-earning spouse has the right to try to refute the presumption, but that is not easy to do.

HERE'S A LOT MORE FREE NJ DIVORCE HELP

Until next time,