Summary of Division of Property in New Jersey

How is property divided in a divorce?

Everything a husband and wife own (whether individually or commonly) is divided into one of two categories under New Jersey law: (1) marital property, and (2) separate property.

New Jersey is an "equitable distribution" state. This means that spouses “equitably distribute” property that is deemed under New Jersey law to be “marital property,” or property acquired during the course of marriage.

Notice that New Jersey law does not say that marital assets should be distributed “equally.” Instead, the term “equitable” is used. This term essentially means that assets are distributed according to what is deemed to be fair, just, or right. It does not necessarily mean that the actual outcome will be an equal or 50/50 distribution.

If property is not deemed to be “marital property,” it is considered to be “separate property,” or property that was acquired by a spouse before marriage or property that was inherited or given as a gift to a spouse during the course of marriage. However, if property (or income derived from property) has been used for the common benefit of the spouses during their marriage, it would be considered marital property. Any property that is considered to be “separate property” will be given to the spouse who owned it before the marriage or to whom it was given during the marriage.

A court may consider the following factors in determining the distribution of marital property:

  • duration of the marriage or civil union;
  • age and physical and emotional health of the spouses;
  • income or property brought to the marriage;
  • standard of living established during the marriage;
  • any written agreement made by the parties before or during the marriage concerning an arrangement of property distribution;
  • economic circumstances of each party at the time the division of property becomes effective;
  • income and earning capacity of each party along with other factors;
  • contribution by each spouse to the education, training or earning power of the other;
  • contribution of each spouse to the acquisition, dissipation, preservation, depreciation or appreciation in the amount or value of the marital property;
  • tax consequences of the proposed distribution to each spouse;
  • present value of the property;
  • 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;
  • debts and liabilities of the spouses;
  • need for creation, now or in the future, of a trust fund to secure reasonably foreseeable medical care;
  • extent to which a party deferred achieving their career goals; and
  • other factors that the court may deem relevant.