By Susan Buckner, J.D. | Legally reviewed by Susan Buckner, J.D. | Last reviewed June 27, 2024
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New Jersey is an equitable distribution state. In New Jersey, all property acquired by the spouses during the marriage is marital property and belongs to both spouses equally. Most states use the principle of equitable distribution during divorce proceedings. In New Jersey, courts divide marital property according to the parties' needs rather than equally.
A few states, like California and Texas, are community property states. In these states, marital property gets split 50/50. Each spouse gets an equal share of the value of the marital assets.
Every state has its own laws regarding the division of assets during divorce. New Jersey's marital property laws consider several factors during property division. If a couple has a prenuptial agreement or other written agreements, the court will accept them as long as they conform to other New Jersey statutes.
Note: State laws are subject to change through the passage of new legislation, court rulings (including federal decisions), ballot initiatives, and other means. FindLaw strives to provide the most current information available. You should consult an attorney or conduct your own legal research to verify the state law(s) before making any legal decisions.
Marital property is all property and assets acquired by either spouse during the marriage. New Jersey law presumes that all property acquired during the marriage, regardless of who obtained it, is intended for use by the marital estate. Besides the family home and joint bank accounts, marital property includes:
Wages and income earned by both spouses
Retirement accounts and pension plans
Real estate and other high-value purchases, regardless of title
Appreciation to the marital home or other property if due to efforts of either spouse
Credit card debt and other liabilities
During the divorce process, all marital funds and assets are subject to division unless there is a prenuptial or post-nuptial agreement to the contrary.
Separate property, or non-marital property, is everything either spouse acquires before marriage. Separate property includes anything purchased or traded for separate funds and property in one spouse's name that is kept isolated from the marital property. Separate property may include:
Gifts, inheritances, or bequests made by a third party to one spouse
Passive income, such as rent or interest, not due to the contributions of either spouse
Property acquired after legal separation
Commingling of marital and separate property happens when separate property is used to benefit the marital estate. It can also happen if both spouses use an asset even though it belongs to one spouse. For instance, if the house is in one spouse's name but becomes the marital residence, it becomes marital property.
New Jersey's equitable distribution law gives judges several factors to consider when dividing property during a divorce. Not all these factors apply in all situations. Family law courts prefer an equal division of property, but these factors help determine if one spouse should receive more or less of the marital assets or debts.
Judges can consider:
Duration of the marriage
Physical and emotional health of each spouse
Each spouse's income and earning capacity
Marital debts or liabilities
Marital standard of living
Each spouse's contribution to the marriage, including homemaking and childcare
Written agreements, such as prenuptial agreements
Tax consequences to each party
Child custody and alimony support orders
Any other factors the court deems relevant
Judges have the discretion to order unequal distribution of property if one spouse needs additional support. For instance, the spouse with primary child custody may receive the marital home if the judge feels it’s in the best interest of the children.
Official State Codes - Links to the official statutes in all 50 states and D.C.
Property division is a difficult part of a divorce. Even if you and your spouse have a prenuptial agreement, you need legal advice from an experienced New Jersey divorce attorney to protect your property rights.
Contact a qualified attorney.
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