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In marriage and in life, we inevitably accumulate a significant amount of “stuff.” Not only do we acquire tangible property, such as homes, cars, furniture, and jewelry, but we also attain certain forms of intangible property, such as stocks, bonds, retirement accounts, pension funds, and many others. Due to the many forms of property in our lives and the extent to which property may become intermingled during marriage, asset division is often among the most complex and challenging aspects of the divorce process. At times, it can be difficult to identify what constitutes marital versus separate property, and further, to accurately evaluate who is entitled to how much of any given asset. In order to ensure that you maintain what is rightfully yours and receive all of the property that you deserve, it is critical to enlist a knowledgeable divorce attorney who can protect and advocate for your financial interests.
At The Montanari Law Group, our attorneys are well-versed in New Jersey law as it relates to all facets property division during divorce. As a result, we have assisted clients in Little Falls, Wayne, Totowa, and throughout Passaic and Essex counties in achieving favorable marital settlements that position them well for the future. With our knowledge and resources, we will work to ensure that no form of property forgoes assessment, accurate valuation, and fair distribution during the division of assets process. It is our mission to anticipate and prepare for any and all challenges that may arise during your divorce to achieve the best possible outcome. To discuss your case with one of our skilled New Jersey divorce attorneys, contact us today at 973-233-4396 or toll free at 888-877-7985 for a free consultation.
Divorce, no matter how you go about it, is a complex process. One of the primary elements of a New Jersey divorce settlement that can test even the most amicable spousal relationships is the division of marital assets. Over the course of a marriage, spouses accumulate a wide variety of material assets and earn even more financial ones. How do these assets get divided in a divorce? New Jersey operates under an Equitable Distribution model, which mandates the fair, objective division of marital property. This means that the family law court uses a number of metrics to determine a fair division of assets that is equitable for both parties. Although one might initially associate equitable distribution with a “split down the middle” or 50/50 result, this is not always the case. In fact, equitable distribution can result in a wide range of outcomes, with the single criteria being a “fair” result. Obviously, “fair” is an assessment subject to a significant amount of interpretation.
In order to guide property division determinations, New Jersey law outlines a number of factors which must be considered during the division of assets process. These include:
Equitable distribution only applies to marital property, which is defined as property acquired or earned by either party during the marriage. Separate property, which is not subject to equitable distribution, includes any property that you or your spouse acquired before entering into the marriage. Even spouses who are divorcing on good terms often run into issues when it comes to dividing up their assets. The first question a couple must face are which assets are shared, or marital assets; and which assets are separate. Spouses are often surprised that their personal income, retirement benefits, company stock options, and other seemingly ‘personal’ assets are subject to equitable distribution in a New Jersey divorce. Any property, material or financial, that has been accumulated during the course of the marriage is subject to equitable distribution in a divorce, with few exceptions.
Debts accumulated during a marriage are also divided equitably in a divorce. Marital assets can include the marital home and any vacation properties, in-home possessions and valuables, vehicles, retirement savings, financial and real estate investments, stock portfolios, mortgages, and credit card debts, among others. Developing a list of marital assets and avoiding one spouse hiding assets in service of keeping the totality of their worth can be a challenge in itself.
In certain cases, the line between marital and separate property becomes blurred. For example, if you owned a home before you were married but your spouse contributed significantly to renovations that increased the home’s value, then your spouse may then be entitled to a share of the increase in the home’s value. Then there are questions like how the marital home will be divided. Will the home be sold? Will one spouse keep the house in exchange for other assets? Will both spouses share the house after divorce; and if so, who will be responsible for maintenance and property taxes? Additionally, there are several exceptions to property distribution in New Jersey, including inheritances or gifts that either you or your spouse receive from a third party. For instance, if your grandmother left you a portion of her estate, you are entitled to maintain this asset in its entirety under New Jersey law.
Some of the factors considered in an equitable distribution divorce are how each partner contributed financially and otherwise to the marriage, the spouses’ ages and physical and mental health needs, what each spouse’s earning potential is, financial or time contributions one spouse made to another’s professional development or career, the standard of living developed during the marriage, and more.
As such, just because one spouse earned significantly more in a marriage than the other does not mean that they will get significantly more in a divorce. The other spouse’s non-economic contributions are honored in New Jersey family law court and will be taken into consideration alongside other factors. One partner may have been the primary breadwinner, while the other contributed in other important, non-financial ways like homeschooling the children. In some cases, when one partner has racked up more debt than the other, even if they were the primary breadwinner, the non-bread winning spouse may contend that the other is responsible for shouldering that debt. But ultimately, the debt belongs to both partners, and various factors will have to be considered to determine how to equitably divide both the couple’s shared assets and their debts.
The division of assets process is often highly involved and it has the potential to become extremely contentious. The most challenging question when negotiating a fair settlement is what exactly is equitable distribution. Navigating the essential challenge of determining what is fair in asset distribution can be facilitated by a skilled family law attorney and in some cases, your lawyer may need to litigate your case in court before the decision is ultimately made by a family law judge.
Spouses can sometimes work together to honor each one’s desires in a divorce, usually with the help of skilled divorce attorneys and potentially a divorce mediator. If one spouse is interested in keeping a specific asset, they can sacrifice other assets of comparable value. Where couples don’t agree, both lay claim to the same assets, or other contention arises, attorneys are particularly valuable allies for negotiations and litigated divorces.
With experience facing questions about vested stock options, business assets, and many others, our specialized divorce attorneys are skilled at finding solutions to property divisions involving these types of complex issues. After thoroughly examining the property situation in your case, we will work diligently to find potential solutions, negotiate to arrive at a favorable marital property settlement if possible, and aggressively advocate for your interests in court when necessary.
Investment property is any real property owned by one or more people that contributes to their passive income. Another way of saying passive income is unearned income. Income that is unearned is usually classified as any income that the person receives but has not done anything to earn that income, or actively work for the income. A great example of investment property is a rental property. Rental property would be a property you own but rent out to tenants who pay you in order to live there for a specified period of time. Of course, there are certain things that must be done in order to maintain standard living conditions; however, this is considered an investment property and passive, unearned income.
To navigate through all possible options regarding your investment properties, it is advisable to consult with an experienced divorce attorney before making any decisions or signing any document. The team of divorce lawyers at The Montanari Law Group is ready to help you handle your investment property as well as helping you plan and prepare for any related tax issues. We have advised and counseled numerous clients seeking a fair distribution of their investment assets in Caldwell, Elmwood Park, South Orange, Clifton, Verona, Wayne, and other Passaic County and North New Jersey neighboring towns. You worked hard for what you have to let it all go away for not having the advice of a seasoned attorney. To schedule a no-cost consultation, do not hesitate to contact our firm at 973-233-4396.
When it comes time to divide assets in a divorce, only certain assets will be divided amongst the parties of the divorce. These assets are known as the marital property, or property that is considered to belong the marriage. These assets belong to both parties of the divorce and will be considered “up for grabs” when the time comes. Knowing whether or not property is marital in the eyes of the court is extremely important in order to know how your life will change in the coming months.
After your attorney helps you determine what exactly is marital property and what is fair game for your soon-to-be ex-spouse, the value of said property must be determined in order for the court to equitably (not equally) distribute the marital assets. New Jersey is known as an equitable distribution state. This is very important to know during the division of assets in a divorce matter. The court will concern themselves with how much each party contributed to the property and what is fair, not necessarily equal.
If you own investment properties, such as a rental property, and you and your attorney believe that the court will consider the investment property to be marital property, then there are certain considerations you must account for.
The first is whether or not you will continue to collect rent and split the proceeds between yourself and your soon-to-be ex-spouse. Doing this would require you to create a new business relationship with your ex-spouse. If you and your spouse are having a very contentious divorce, this may not be the best option. This depends upon your ability to remain amicable with your spouse and trust them enough to do business with them. However, you may spend money to hire a property management company so you may limit your communication with your ex-spouse.
Your second option is to split the properties entirely. This is usually the option to take if you own more than one investment property. For example, if you own four properties that you rent out, you may take full ownership of two of the properties while your ex-spouse takes full ownership of the other two properties. It is very rare that it works out perfectly in this scenario. There may not be an even amount of properties. Even less so, the properties may not earn an equal amount of money or be worth the same. This option requires compromise, and that may not be realistic for either party at this stage of the divorce.
The third option is to buy out your ex-spouse completely. If you laid down the groundwork in order to collect the passive, unearned income and continue to maintain the properties in order for tenants to continually rent them, you may decide to offer your ex-spouse money in order for them to relinquish the interest in the property. This is likely to be a costly endeavor, especially if the divorce is particularly contentious. This could mean that you have to refinance the property on your own with your own assets, and that might be difficult, especially if you are currently going through a divorce.
The final option for those in a divorce proceeding with investment properties is to sell the properties. If no other option is achieved, the court will most likely order the sale of the investment properties so that the proceeds are distributed equitably. This is the best option for those who want to cut their ex-spouse out of their life completely.
Dividing investment properties during divorce requires legal skill and financial insight. An experienced divorce lawyer ensures your investments are accurately valued, your financial interests are protected, and any tax implications are addressed. At The Montanari Law Group, LLC, we help determine what qualifies as marital property, how assets may be valued, and what outcomes courts typically favor. Whether through negotiation or litigation, our attorneys work to secure your fair share and safeguard the investments you’ve worked hard to build.
The benefits of having a skilled and experienced divorce attorney as you work to determine the future of your hard-earned assets cannot be overstated. The lawyers at The Montanari Law Group have years of experience representing the best interests of our clients in Totowa, Caldwell, Paramus, Montvale, Haledon, Wyckoff, Millburn, and throughout Passaic County, Bergen County, Essex County, and surrounding areas in New Jersey, ensuring that they have the most prosperous head start to their next chapter possible. Equitable asset distributions that address our clients’ specific desires, spousal support arrangements that protect standard of living, and custody arrangements are all important elements of a divorce that we strategize and find positive solutions for.
To speak with one of our distinguished Passaic County asset division attorneys today, contact us at (973) 233-4396 or toll free at 888-877-7985 for a free initial consultation. We also offer flexible appointment options at our centrally-located office.