What Happens to Property?

Marriage is viewed as a partnership, almost like a family business. It does not matter that one spouse worked during the marriage and the other stayed at home. New Jersey law states that by staying home, the non-working spouse made it possible for the working spouse to earn a living. Therefore, any property that was acquired during the marriage is subject to what is called “equitable distribution.” There are exceptions to this rule, such as: property acquired during the marriage by either party as a gift from a third party or inherited property. Unless those kinds of property are shared in the marriage, they are not subject to equitable distribution.

Equitable distribution of marital property does not always mean an equal division. There may be reasons why one spouse would receive more or less than an equal share of an asset. For example, one spouse may get 60% of the marital home and, in return, waive her or his right to alimony. Or, one spouse may have severe health problems and need a larger share of the total family assets. These, and similar types of problems can result in an unequal distribution.

Here are some kinds of property typically subject to equitable distribution:

1. Businesses
2. The marital home or other real estate
3. Investments
4. Retirement funds
5. Automobiles
6. Boats
7. Gifts from one spouse to the other
8. Personal property