When a couple decides to divorce in New Jersey, one of the most important and often contested issues is the division of property. Understanding what qualifies as marital property is essential for both spouses, as it determines what assets will be subject to equitable distribution by the court. In New Jersey, not all property is divided equally, but rather equitably—meaning fairly based on a variety of factors. So, what exactly is considered marital property in New Jersey?
Definition of Marital Property
Under New Jersey law, marital property includes almost all assets and debts acquired by either spouse during the course of the marriage, regardless of whose name is on the title or account. This applies from the date of the marriage until the date a divorce complaint is filed.
Common examples of marital property include:
- The family home (even if titled in one spouse’s name)
- Bank accounts and savings
- Retirement accounts such as 401(k)s and IRAs
- Investment portfolios
- Vehicles
- Household furniture and electronics
- Businesses started or expanded during the marriage
- Debts, such as credit card balances and mortgages, accumulated during the marriage
Even if an asset is in one spouse’s name, if it was acquired during the marriage, it is usually considered marital property.
What Is Not Marital Property?
Assets that are considered separate property are typically not subject to division in a New Jersey divorce. These include:
- Property acquired before the marriage
- Gifts or inheritances given to one spouse alone
- Property protected by a valid prenuptial agreement
- Compensation from a personal injury settlement (excluding lost wages or medical bills paid during the marriage)
However, even separate property can become marital property if it is commingled. For example, if one spouse receives an inheritance and deposits it into a joint account, or if both spouses make improvements to a home one owned before marriage, that asset may become partly or fully marital.
Equitable Distribution in New Jersey
New Jersey follows the principle of equitable distribution, which means marital property is divided fairly—but not necessarily 50/50. The court considers multiple factors when deciding how to distribute assets, such as:
- The duration of the marriage
- Each spouse’s income and earning potential
- Contributions made by each spouse (financial and non-financial)
- The standard of living established during the marriage
- Any written agreements between the spouses
- The custody arrangement, if children are involved
The goal is to reach a division that is just and reasonable for both parties, given their unique circumstances.
Marital Debt
Just like assets, debts acquired during the marriage are also considered marital property and subject to division. This includes mortgages, loans, and credit card debt. The court will evaluate who benefited from the debt and each spouse’s ability to repay it.
Importance of Legal Guidance
Dividing marital property can be complex, especially when there are significant assets, businesses, or disputes over what is marital versus separate property. Working with a New Jersey family law attorney ensures that your rights are protected and that property is divided in accordance with state laws.
Conclusion
In New Jersey, marital property includes most assets and debts acquired during the marriage, even if titled in just one spouse’s name. Understanding what counts as marital property—and how it will be divided—is critical for protecting your financial interests during divorce. Equitable distribution doesn’t mean equal, but it does aim to be fair.