Equitable Distribution in Divorce – Part II

Jul 8, 2026 | Written by: Diana N. Fredericks, Esq. | Share

More than a decade ago, our now retired partner blogged about Equitable Distribution and Divorce in New Jersey.  Although the law has not changed significantly, equitable distribution is one of the most important topics in your divorce case.  It casts a wide umbrella (involving real estate, retirement, bank accounts, stocks, bonds, businesses, personal property, and so on) and requires a thorough understanding of the issues in your case and  how each interplays upon another, like a puzzle.  Moreover, alimony and equitable distribution are inextricably linked, which is why we almost never settle cases in a piecemeal manner, but rather take a holistic approach. 

According to the court, the doctrine of equitable distribution reflects "an acknowledgment 'that marriage is a shared enterprise, a joint undertaking, that in many ways is akin to a partnership.'"¹  

"The goal of equitable distribution . . . is to effect a fair and just division of marital [property]."²  

"This demands more than simply 'mechanical division . . . .'" "The word 'equitable' itself implies the weighing of the many considerations and circumstances that are presented in each case."³  

Therefore, each "case should be examined as an individual and particular entity" rather than "presumptively" assigning "[fifty percent], of all eligible assets to each spouse . . . ."  

The court has outlined a three-step process to follow in the equitable distribution of marital assets.  While many people believe distribution is equal (50/50), it is not automatically so. Rather, it is determined by what is fair and equitable based on all of the facts and circumstances of your specific case.  This may be very different from what the court determined for your friends, family and neighbors, which is why having an experienced and specialized (certified) family law attorney is critical to your ultimate understanding and success.   

• First, a court decides "what specific property of each spouse is eligible for distribution."  
• Second, the court "must determine its value for purposes of such distribution."  
• Third, the court "must decide how such allocation can most equitably be made."    

At this step, statutory law requires the court to consider the following factors⁴: 

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;  
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 career goals; and  
16. Any other factors that the court may deem relevant.  

Equitable distribution is unique and nuanced.  It requires thorough attention to details and knowledge of all of the assets and liabilities in your case.   Your attorney needs to understand which assets are liquid, which are taxable, and so on.  What is fair and reasonable?  What is most important to you?  Perhaps you are willing to take less of asset A in exchange for asset B or “walking away” from certain liabilities.  This is why we equate a divorce to a complex puzzle.  An attorney must not only understand the client’s wishes, but must have all the information necessary to understand what is feasible, practical, and fair, and to properly advise the client.

 Currently in New Jersey, approximately 98% of family law cases settle.  Attorneys are often creative when crafting settlements and have the autonomy to do so outside of the court system.  It is therefore critical to ensure that a complete and fair disclosure has been made by both parties, and that all of the above factors are taken into consideration when crafting your specific settlement.    

¹ Thieme v. Aucoin-Thieme, 227 N.J. 269, 284 (2016) (alteration in original) (quoting Smith v. Smith, 72 N.0, 361 (1977)); accord Rothman v. Rothman, 65 N.J. 219, 229 (1974). 

² M.G. v. S.M., 457 N.J. Super. 286, 294 (App. Div. 2018) (alteration and omission in original) (quoting Steneken v. Steneken, 183 N.J. 290, 299 (2005)). 

³ Stout v. Stout, 155 N.J. Super. 196, 205 (App. Div. 1977). 

⁴N.J.S.A. 2A:34-23.1 

Diana N. Fredericks, Esq., devotes her practice solely to family law matters.  She is a Certified Matrimonial Law Attorney and was named to the NJ Super Lawyers Rising Stars list in the practice of family law by Thomson Reuters from 2015 through 2021, to the NJ Super Lawyers list in 2023, 2024, 2025, and 2026, and to the New Leaders of the Bar list by the New Jersey Law Journal in 2015.  Contact Diana for a consultation at 908-735-5161 or via email.

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Any statements made herein are solely for informational purposes only and should not be relied upon or construed as legal advice.