Blog

There is No Community Property in New Jersey

There is no community property in New Jersey. Said differently, the concept of community property is not a recognized legal concept in New Jersey divorce cases. In New Jersey, the division of property amid a divorce falls under principles of equitable distribution. All marital assets get equitably distributed in a New Jersey divorce. Among these assets are houses, retirement funds, property, financial accounts, and debt acquired during the marriage.

Equitable Distribution

One common misunderstanding is that equitable distribution means equal distribution. It does not. Division of assets are addressed on a case-by-case basis. This analysis will determine if an equal distribution is the most equitable and fair. There are many factors that go into the analysis. But basically, the question is when and/or how the asset was acquired and utilized during the marriage.

Marital Home

There is another common misconception in New Jersey divorce law. Many people think that title on property, such as the Deed, solely determines property ownership in New Jersey. Not necessarily true. If both spouses made contributions (financial or otherwise) to the maintenance of the marital residence, both may have an interest in the distribution of the property at the time of divorce.

Marital Debt

Similarly, student or credit card debt in only one spouse’s name can be considered marital debt. Marital debt is also subject to equitable distribution. Relevant factors include the date and reason for the debt and who paid it back during the marriage. However, this is not an exhaustive list of factors for consideration. The treatment of tax debt is the same. Again, the date and reason for tax debt are among factors.

To sum. There is no community property in New Jersey. Rather, New Jersey has a system of equitable distribution – not equal distribution. As such, it does not lead with a 50% split. Rather, it first identifies the marital property and values the same. Then, it determines the most fair and reasonable allocation of assets based upon the facts and circumstances of each individual marriage.

Please call me if you have any questions about this blog, or other family law concerns.

Back to Blog
SHARE THIS POST:

Related Posts

Blog
The Advantages of Divorce Mediation

Reasons to Choose Divorce Mediation Over the Alternatives According to some sources, nearly half of all marriages in the U.S. end in divorce. Mediation results in a positive resolution in as many as 80% of all cases. Many divorce lawyers recommend mediation if possible because there are many advantages to this approach, including saving time…

Read More
Blog
Dealing With Taxes During Your Divorce

Planning for the Tax Aspects of a Divorce While divorce can be a challenging experience personally, emotionally and practically, the financial effects are some of the longest-lasting changes. Not only do you need to manage asset division and the resulting change to both parties’ finances, but you may also find it challenging to adjust to…

Read More
Blog
Is a Prenup or a Trust Better Advance Preparation for Divorce?

Prenup or a Trust? – Divorce-Proofing Your Assets When people in New Jersey decide to marry, they may not want to think about divorce. However, with more people marrying later in life, with established careers, as business owners or as parents of children from prior relationships, there are many good reasons to engage in financial…

Read More
Blog
Preparing for the Realities of Divorce

Meeting the Challenges of Divorce Dealing with an unhappy marriage can be painful and difficult. Whether there are severe conflicts or simply a growing apart over time, divorce is always challenging on personal, emotional and financial levels. While spouses in New Jersey know that divorce is a significant undertaking, it can be more difficult than…

Read More
Blog
How Can Divorce Affect Your Medical Practice?

How to Deal With Your Medical Practice in a Divorce New Jersey doctors going through a divorce may have particular concerns about how the end of the marriage will affect the future of their medical practice, especially as any private practice is typically a closely held business. Much like other business owners, physicians may worry…

Read More
Blog
What Documents Do You Need for Your Divorce Legal Consultation?

Documents to Give Your Divorce Attorney If you are considering a divorce in New Jersey, it is important to prepare the documents that you need to share with your family law attorney. While the decision to end a marriage may be deeply personal and emotional at its core, divorce is a legal and financial process…

Read More

Disclaimer and information can be found here, including links to descriptions and selection methodologies. No aspect of this advertisement has been approved by the Supreme Court of New Jersey.
Call Now ButtonCall Us