In this article, you can discover:
- What the court will be thinking when it’s time to split up assets
- How the court will assess how to fairly split marital debt between the two parties
What Factors Affect How Properties Or Assets Are Divided In A Divorce?
In New Jersey, we are an equitable distribution state. This means that assets are not divided equally, but rather are split according to a multi-pronged test that takes into account the duration of the marriage, the age and emotional health of the parties, the income or property brought to the marriage, and the standard of living established during the marriage, as well as the economic circumstances of each party.
This means that even if a couple has an asset of substantial value, such as a retirement account, the court can decide that the spouse who took time out of the workforce to care for children or manage the household due to a health issue should receive a larger portion of the retirement asset.
How Do The Courts Handle The Division Of Debts In A Divorce?
In New Jersey, courts typically divide marital debt equally between the parties. However, if the debt is non-marital, the spouse who did not incur it will not be held responsible, provided they can prove it. In the event of unequal earnings or any other situation where one party benefits more from the debt, the court may decide to divide the debt unequally in order to ensure fair treatment of both parties.
Recently, I had a case involving substantial debt and a large discrepancy in earnings – the husband earned $150,000 compared to the wife’s $35,000. The court determined that the husband should pay a greater proportion of the debt due to the large difference in earnings and age. This is how debts are handled in New Jersey.
With the guidance of a skilled attorney for Family Law Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on Family Law in New Jersey, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (732) 365-3299 today.