DIVORCE: Equitable Distribution (Division of Assets) in New Jersey
Divorce: Equitable Distribution (Division of Assets) in New Jersey
New Jersey is an equitable distribution state. This means that the Court can divide marital assets (cars, houses, pensions, etc.) fairly but not necessarily equally.
Many factors are considered when dividing marital property such as:
- Health and age of spouse
- Length of marriage
- Income and economic circumstances of each spouse
- Martial standard of living
Marital Home: What Can I Do With The House?
Sell the home – To avoid complications, sometimes it is best to just sell the house, as in most cases, neither spouse can afford to buy out the other.
Arrange a buyout – If you are able to afford the buyout, you can buy out the other spouse’s equity.
Pensions & Retirement Accounts
Pensions and retirement accounts are subject to equitable distribution. In order for us to effectuate the division of retirement assets or monies, we as attorneys would obtain a Qualified Domestic Relations Order (QDRO). QDROs are court orders executed by a judge in a family court that orders the pension plan administrator to separate the amount due to the other spouse fairly.
QDROs are important because when dividing assets, the spouse receiving their share will not face tax consequences. Also, without a QDRO, a retirement plan administrator can simply refuse to divide the asset.
Cars & Boats
Sell car/boat – If the car or boat is not a necessity at the time, you can sell the car and/or boat to avoid future credit/payment problems.
Arrange a buyout - If you are able to afford the buyout, you can buy out the other spouse’s equity.
Alimony is when an individual provides financial support to their spouse before, during or after a marital separation or divorce.
When considering spousal support, the Court considers several main factors such as:
- Tax effects of payments
- Length of marriage
- Marital standard of living
- Spouse’s health and age
- Income of each spouse
- History of financial or other contributions in the marriage
- If one spouse needs financial support to maintain a lifestyle close to the marital standard of living
How Can We Help?
If you have any questions about equitable distribution and divorce, contact one of our competent and experienced lawyers at Garcia Law. To schedule a consultation, contact Garcia Law through our website or call (201) 340-2899.