Divorce can be emotionally devastating, even if it was a long time coming. As you process your emotions, you may unfortunately have to address some of the practicalities of divorce. One issue may be determining how to best divide your marital assets.
In community property states like California, marital property is divided equally between the spouses. However, in equitable distribution states like New Jersey, marital property is divided fairly and equitably between the spouses, but not necessarily equally.
What is marital property?
When a person gets married, they often bring certain assets they collected as an individual into the marriage. They may also receive an inheritance or gift during the marriage that is solely intended for just them. This property is considered separate property and it will not generally be subjected to property division in a divorce.
Property acquired during the marriage or with marital funds is considered marital property and will be distributed during the divorce. The family home, vehicles, furniture, artwork, joint bank accounts, and family-owned businesses may be considered marital property.
How do courts determine how property should be divided?
Courts generally determine what is fair and equitable by considering several factors relating to the property itself and the marriage. Some of these factors include:
- Contributions of each spouse to the marriage (financial and non-financial).
- Value of the property.
- Duration of the marriage.
- Each spouse’s assets, debts, income and earning capacities.
- Tax consequences.
Many people make the mistake of letting their emotions dictate which marital assets to fight for in a divorce. It is important to consider which assets you can afford to keep and maintain and which assets are better to let go of.
