If you're going through a divorce in New Jersey, you'll need to divide up your assets between you and your spouse. This can be a difficult and emotionally charged process, but it's important to try to come to an agreement that is fair and beneficial for both of you. With the help of a qualified divorce attorney, you can negotiate a division of assets that meets your needs and protects your interests. Keep reading to learn more about how to divide assets during a divorce in New Jersey.
Review: New Jersey Property Division Rules
The state of New Jersey follows the equitable approach regarding property division in divorce cases (and is referred to as an “equitable distribution state”). As outlined in NJ divorce laws, equitable distribution is meant to ensure a fair division of assets between divorcing couples. This means that all marital assets, such as real estate, bank accounts, and pensions, are identified; both parties' contributions to its acquisition will be taken into account; and it will be divided in a way that the court deems equitable.
It's important for those involved in a divorce to understand New Jersey property division laws so they can make informed decisions while navigating the process. Seeking qualified legal advice from experienced family law professionals is key to protecting your interests.
How Does Shared Debt Affect Asset Division?
When it comes to asset division in a divorce situation, shared debt plays a significant role. In many cases, separate debts are kept separate, and both parties hold full responsibility for these obligations without one party taking on any of the other's. However, when it comes to marital debts acquired during the marriage, this is more complex and often requires some negotiation between the two parties to decide who will take on which marital debt amounts.
At the end of property and debt division negotiations, each party may end up with a different financial burden depending on their individual goals and priorities. Therefore both parties must understand their rights and consider all options before finalizing their agreement regarding what portion of this shared debt each of them is responsible for.
Examples of some ways couples divide their shared debts:
- 50/50 split of all debt
- Each party takes on specific debts resulting in an equitable split of their overall debt obligation
- One party takes on more debt in exchange for retaining a specific asset
When You Should Consider Mediation
Mediation is an excellent alternative to protracted legal proceedings for dividing assets and debt during a divorce. Additionally, agreeing to mediation with your former partner is often beneficial if you wish to maintain a civil relationship post-divorce, such as when you will be co-parenting with your former spouse. Mediation gives both parties the opportunity to talk openly in a neutral atmosphere while the mediator provides guidance and facilitates a resolution.
It's important to consider whether mediation or proceeding through litigation will be more beneficial in your particular situation. You should discuss it with your lawyer, as they can advise on which option is better suited to meeting your needs and achieving a satisfactory outcome.
Is Asset Division Litigation Ever a Good Idea?
Property division litigation can be an expensive and stressful undertaking, often taking months to resolve. That said, litigation may be necessary in some cases, such as when parties cannot agree or you are dealing with a high-conflict divorce. However, it should be considered carefully due to the emotional and financial toll that it can take on the parties involved.
Property and debt division is one of the most challenging aspects of divorce. Get the experienced help you need; contact DeTommaso Law Group today. Our team offers compassionate, thoughtful legal representation to all clients. We can use our experience to help you, too.