Division of Marital Property (Equitable Distribution)

Equitable distribution is the phrase the court uses when it divides property rights and obligations between spouses during a divorce. The goal of equitable distribution is to allocate assets and liabilities obtained during the course of the marriage to both parties, whether or not that property is titled in one or both of the parties’ names.

When a marriage ends, the court must divide the property and debts accumulated during the relationship. In New Jersey, this process is called equitable distribution — and it does not simply mean splitting everything down the middle. Instead, the court aims for a division that is fair based upon the specific facts of each matter.

New Jersey courts follow a three-step process, established in Rothman v. Rothman, 65 N.J. 219 (1974):

1. Identify which assets and debts are eligible for distribution
2. Value those assets
3. Divide them in the most equitable way possible

As the New Jersey Supreme Court recognized in Pascale v. Pascale, 140 N.J. 583 (1995), marriage is a partnership — and when that partnership ends, its assets should be distributed fairly between both parties.

Under N.J.S.A. 2A:34-23.1, the court weighs a broad range of factors in determining how to equitably distribute property, including:

• The length of the marriage
• The age and physical and emotional health of each spouse
• Each party's income, assets, and earning capacity — including education, work history, time out of the workforce, and the cost of re-entering it
• The standard of living established during the marriage
• Each spouse's contributions to marital assets — financial and otherwise, including contributions as a homemaker
• Any dissipation, depreciation, or appreciation of marital property
• The economic circumstances of each party at the time of distribution
• Property or assets each spouse brought into the marriage
• Any prenuptial or postnuptial agreements
• The tax consequences of the proposed distribution
• The present value of the assets
• Debts and liabilities of the parties
• Whether a custodial parent needs to remain in the marital home
• The need for a trust to cover future medical or educational expenses for a spouse or children
• The extent to which either party deferred their own career goals
• Any other factors the court considers relevant

No two cases are alike. Because equitable distribution turns on the specific facts and dynamics of each marriage, experienced legal guidance is essential to ensuring your interests are fully represented.

Given the complexities involved with equitable distribution, we advise you to contact one of our experienced family law attorneys at 908-735-5161.  We handle equitable distribution and family law issues throughout New Jersey.