New Jersey Family Law - Equitable
Distribution
Equitable distribution is the
process by which the courts decide how the marital property is
to be divided between the parties. The theory behind equitable
distribution is the recognition of the “partnership” aspect of
the marital relationship. The distribution applies to all
assets acquired during the marriage, including but not limited
to real estate, personalty, bank and brokerage accounts,
retirement assets and business entities.
Generally New Jersey courts
will undertake a three step process in making an equitable
distribution: (a) identification of the property (b)
valuation and (c) distribution. N.J.S.A. 2A:34-23 (h) and
N.J.S.A.2A:34-23.1 are the principal statutes governing
equitable distribution and set out the factors to be
considered when determining the distribution of marital
assets. The statute lists 15 factors but allows the court
to consider any other additional factors it may deem
relevant:
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, 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 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.
When making its determination
based on these factors, the court must make specific
findings of fact based on the three step process mentioned
above, i.e., (a) which assets are eligible for
distribution, (b) their value and (c) the manner in which it
should be distributed.
Generally, property will
qualify for distribution when it is the result of an effort
or activity by either spouse during the marriage. The
assets to be distributed are usually identified, for
valuation purposes, as of the date that the Complaint of
Divorce is filed.
With more than half a century's
experience, it's easy to see that Diamond &
Diamond is the smart choice when you find yourself in need of
an equitable distribution lawyer in New Jersey.
Email or call us now at 973.379.9292
Diamond & Diamond
New Jersey Family Law
225 Millburn
Avenue, Suite 208
Millburn, New Jersey 07041
Telephone: 973-379-9292
Facsimile: 973-379-9210
