New Jersey

Post Divorce Property Division

What is property division in a New Jersey divorce?

Also known as equitable distribution, property division is the process of dividing property rights and obligations between spouses during the process of a divorce. Property division may be agreed upon between the soupses through a property settlement, or it may be decided in court during the judicial process of divorce. The process of property division is affected by state laws such as community property laws, definitions of marital contributions, etc.

New Jersey is an equitable distribution state, and only property acquired during the course of the marriage is subject to division following divorce. Some factors considered by New Jersey courts in a property division case include non-monetary contributions, contributions to a partner's education, economic misconduct and a list of other factors defined in New Jersey law. This page summarizes the most important aspects of property division laws in New Jersey.

New Jersey divides marital assets via equitable distribution, which means that the court attempts to divide marital assets in a fair and equitable manner between the spouses, taking multiple factors into account in order to determine the equitable distribution for each spouse.

How is Property Divided?

Is New Jersey a community property state?

New Jersey is NOT a community property state, which means that marital property is not automatically divided 50/50 between the spouses in a divorce case.

Instead, New Jersey judges determine property division under the equitable distribution policy, which means that the court divides property between the spouses in what is believed to be a fair distribution, based on each individual's contributions to the marriage and their earning ability and needs following separation. Factors such as one spouse's economic misconduct may also be considered.

In practice, judges in an equitable-distribution state like New Jersey often divide marital property with approximately 2/3 of marital assets going to the higher-earning spouse, and 1/3 going to the lower-earning spouse.

Does state of New Jersey only divide marital property after a divorce?

In the state of New Jersey, only property or assets considered "marital property" or "community property" are subject to division in a divorce case. This means that property owned by either spouse prior to marriage is exempt, as are certain individually-owned assets acquired during the tenure of the marriage.

Some individual property may be considered to be "partial community property" or even ruled to be fully community property due to contributions by the other spouse or co-mingling of assets, which may lead to complicated property division situations.

Is there a set list of statutory factors for determining property division in the state of New Jersey?

New Jersey has a list of factors set by statute that specify what the court will use to determine a fair property division. Examples of factors that are often taken into consideration during property division cases include:

• Marital Fault - In states that allow at-fault divorces, the fault of one spouse may be used by the judge to justify a higher percentage to the injured spouse.
• Economic Misconduct - In New Jersey, spouses who wastefully or fraudulently spent marital assets may receive a lower percentage of the marital property.
• Income and Earning Capacity - The court may consider the relative incomes and earning capacity of each spouse, which may be affected by factors such as age, education, and health. The spouse with lower economic prospects may receive a larger percentage of the estate.
• Educational Contributions - In New Jersey, spouses who contributed significantly to their partner's education or earning capacity may receive a percentage of the marital property.
• Custody of Children - If one spouse has full custody of the couple's children following the breakup, this may result in higher likelihood of receiving a higher percentage of the estate, or certain pieces of marital property (like the family house).

Do courts in the state of New Jersey consider nonmonetary contributions?

In New Jersey, statutory law requires judges deciding a property division case to account for the nonmonetary contributions of both spouses to a marriage when determining how to divide property between them. In practice, this generally means that the judge will consider the value of the labor a stay-at-home spouse contributed to the marriage. Nonmonetary contributions may include activities like the following:

• Household chores, cooking, homemaking
• Taking care of children
• Supporting their spouse professionally

Does New Jersey consider a spouse's economic misconduct in property division?

New Jersey law allows courts to consider economic misconduct of a spouse as a factor in determining equitable property division. Economic misconduct generally means dissipation of assets, which is the legal term for the wasting or loss of marital funds or assets by a spouse through means like excessive spending, gambling, fraud, etc.

If a spouse is found to have dissipated marital funds in a way that injured the other spouse, the court may take punitive or restorative action by awarding a higher percentage of divided property to the injured spouse.

Are a spouse's contributions to their partner's education considered in the state of New Jersey?

New Jersey statute does provide for court consideration of a spouse's contribution to their partner's education during the course of a marriage. If one spouse supported (financially or otherwise) the other and enabled them to obtain education or other training that increased their earning power, these contributions can be considered by a New Jersey judge when determining how to divide marital property.

Can a pre-nuptual agreement affect property division in New Jersey?

A prenuptual agreement, or pre-nup, is a binding legal contract signed by both spouses prior to getting married in New Jersey. A prenup containing a property division agreement can take precedence over New Jersey's property division laws by establishing what is considered as separate vs marital property, as well as agreeing on how finances will be structured during the marriage and divided in the event of a divorce.

The existance of a valid prenuptual agreement can prevent a New Jersey court from having full reign to determine how assets are divided between the spouses, and instead allow them to be divided in a way agreed to by both spouses prior to the event.

How can I enforce a property division order in New Jersey?

A New Jersey property division order is a court order issued by a court order issued by a judge, describing how property is to be divided between spouses following a divorce. A property division order is a binding legal obligation, and failure to comply with the terms in full by either spouse can result in being charged with contempt of court. If your spouse is not complying with a property division order, you can consult a family lawyer to discuss potential legal avenues.

Dower and Curtesy?

Dower and curtesy abolished as to all property obtained after May 28, 1980 (3B:28-2); some rights exist re property obtained before that date (3B:28-1, et seq.)