Atlantic County Property Division Lawyer

When people think about divorce, one of the first things that comes to mind is often property. After all, throughout the course of a marriage, couples frequently purchase homes, accumulate retirement savings, buy vehicles, open investment accounts, and otherwise build a life together. Because of this, if you are currently getting divorced, there is a very good chance that you have questions about what may happen to your assets and whether you will be able to keep the property you worked hard to obtain over the years. Read on and contact the Law Office of Stephanie Albrecht-Pedrick, LLC to learn more about property division and how an experienced Atlantic County divorce lawyer from our firm can assist you through every stage of the process ahead.

What is Equitable Distribution?

One of the most important things to understand about divorce in New Jersey is that our state follows equitable distribution. Many people hear the word “equitable” and assume it means that all property is divided exactly 50/50 between spouses. Unfortunately, that is not always the case.

Simply put, equitable distribution means that marital property will be divided in a way that the court considers fair. In some cases, a perfectly equal division may be appropriate. In others, however, the court may determine that a different distribution is warranted based on the circumstances surrounding the marriage and divorce.

New Jersey courts may consider several factors when determining how marital assets and debts should be distributed, including:

• The length of the marriage
• The age and health of both spouses
• The income and earning capacity of each party
• The standard of living established during the marriage
• The contributions each spouse made to the marriage
• The value of the property at issue
• The tax consequences associated with the division of property
• Any other factor the court deems relevant

You should also note that contributions to a marriage are not solely financial. For example, if one spouse spent years caring for the children, maintaining the household, or otherwise supporting the family while the other spouse pursued career advancement, the court may consider those contributions as well.

What Do Courts in NJ Consider Marital Property?

Before a court can determine how property should be divided, it must first determine what property is actually subject to equitable distribution. Generally speaking, marital property consists of assets and debts acquired during the course of the marriage.

One important thing to understand is that the title of an asset does not always determine whether it is marital property. In many cases, courts focus more heavily on when the property was acquired rather than whose name appears on an account or deed. Some common examples of marital property can include the following:

• Real Estate
  • The marital home
  • Vacation homes
  • Rental properties purchased during the marriage
• Financial Assets
  • Checking accounts
  • Savings accounts
  • Brokerage accounts
  • Investment portfolios
• Retirement Assets
  • 401(k) accounts
  • Pension plans
  • Individual Retirement Accounts (IRAs)
  • Deferred compensation benefits
• Personal Property
  • Automobiles
  • Furniture
  • Jewelry
  • Artwork
  • Valuable collections
• Business Interests
  • In certain circumstances, a business may also be considered marital property. If a business was started during the marriage, it may be subject to equitable distribution. Additionally, even if a business existed before the marriage, a portion of its growth in value may become subject to division if marital efforts or marital funds contributed to that growth.

Marital Debts

You should also know that debts are considered during the equitable distribution process as well. For example, courts may need to determine how responsibility for the following obligations should be allocated:

• Credit card balances
• Mortgages
• Home equity loans
• Personal loans
• Certain business-related debts

Naturally, determining who receives certain assets is important. However, determining who is responsible for certain debts can be equally important, particularly when substantial financial obligations are involved.

What Do Courts Consider Separate Property?

Fortunately, not all property becomes subject to equitable distribution during a divorce.

Certain assets may qualify as separate property, meaning they generally remain with the spouse who owns them. Examples of separate property often include:

• Property acquired before marriage
• Gifts made specifically to one spouse
• Inheritances received by one spouse
• Certain personal injury awards
• Property protected by a valid agreement

That being said, disputes frequently arise when separate property becomes mixed together with marital property. This process is commonly referred to as commingling.

For example, if one spouse receives an inheritance and subsequently deposits those funds into a joint bank account that is regularly used by both spouses, questions may arise regarding whether the inheritance retained its separate nature. Similarly, if one spouse owned a home before the marriage but marital funds were later used to pay the mortgage, renovate the property, or otherwise increase its value, a portion of that property’s value may become subject to equitable distribution.

How Is Property Valued During a Divorce?

Once marital property has been identified, the next step generally involves determining its value.

Some assets are relatively easy to value. For example, a bank account balance can often be determined simply by reviewing account statements.

Other assets are considerably more complicated. Some examples include:

• Closely-held businesses
• Professional practices
• Commercial real estate
• Valuable collections
• Stock options
• Restricted stock awards

In many cases, experts may be retained to determine the value of these assets. Appraisers, accountants, business valuation specialists, and other financial professionals are frequently involved when substantial assets are at issue.

This process is important because an inaccurate valuation can significantly affect the outcome of a property division case. Even a relatively small discrepancy in value can have major financial consequences, particularly when retirement accounts, businesses, or real estate holdings are involved.

For this reason, it is often important to ensure that all assets are properly identified and accurately valued before agreeing to any final property settlement.

Is There Any Way I Can Protect My Property from a Divorce?

In many cases, the answer to this question is yes.

There are several legal tools that may help protect certain assets from becoming subject to equitable distribution.

One of the most common methods is entering into a prenuptial agreement before marriage. Prenuptial agreements can establish how property will be handled in the event of divorce and can often protect premarital assets, businesses, real estate holdings, and other valuable property interests.

In addition to prenuptial agreements, some spouses choose to execute postnuptial agreements after marriage. Though these agreements are entered into at a different stage of the relationship, they may accomplish many of the same objectives.

Individuals may also take steps to preserve separate property by keeping certain assets separate from marital funds whenever possible. For example, inherited assets are often easier to protect when they are maintained in separate accounts and supported by thorough documentation. Some examples of the most helpful records are as follows:

• Bank statements
• Trust documents
• Property deeds
• Inheritance records
• Gift documentation

Contact a Property Division Lawyer in Atlantic County, New Jersey

The bottom line is that if you’re about to go through the divorce process, you have a lot at stake. Here at the Law Office of Stephanie Albrecht-Pedrick, LLC, we are here to help protect everything you’ve worked so hard for over the years. Contact an experienced Atlantic County property division lawyer from the Law Office of Stephanie Albrecht-Pedrick, LLC for an initial consultation today so we can discuss your case and begin building a comprehensive strategy on your behalf.