Many issues could arise during a divorce. Emotional, family, and economic conflicts are often the most common issues couples face during a legal separation. These challenges are even more prevalent when separating a couples’ previously shared income. Additionally, with many shared assets and debts, a question often asked is how to separate assets and debts during a divorce. Understanding the two and how to split them is a priority when separating from a spouse.
Understanding Assets and Debts in Marital Property
First, it is important to understand what assets and debts are according to the law. An asset is anything owned by an individual or owned by both parties jointly. Typically, the most common joint assets in marriages are real estate, vehicles, bank accounts, furniture, and other items purchased jointly. Retirement accounts can also be partially marital or entirely marital. Many of these assets could also be referred to as marital property as they are bought during the marriage.
On the other hand, debts are not as tangible as assets. The primary example of marital debt is bills the couple accumulated during their union, including, but not limited to, mortgages, credit cards, and auto loans.
Equitable Distribution
New Jersey law does not mandate that all assets and liabilities are split equally. Rather, the debts and assets shared amongst the previously married individuals must be divided so that one individual is not disadvantaged. So how is this equity determined? Under New Jersey law, all marital assets and debts are to be divided “equitably,” meaning that the court will allocate assets and debts “fairly” between the spouses.” In determining what is equitable, courts must consider a few factors.
Many people may choose what assets they want to keep during a divorce. Separating that property should be determined amongst the individuals with legal representation. Determining factors could include how the couple obtained the assets and debts. For example, if one spouse acquired debts or assets through misspending or misusing their funds, the court might decide how to separate the said debt or property equitably versus merely looking at who the asset or debt is titled to.
Learn More About Equitable Distribution
Ultimately, understanding how to separate assets and debts during a divorce comes down to situational factors. It is important to realize that separation does not focus on equality but on equity and ensuring everyone is treated fairly during the divorce.
When you are going through a divorce, it is important to ensure that you are properly represented by a skilled attorney who can ensure that you gain the assets desired and the appropriate debts. To find out more, reach out to our experienced attorneys at William Law Group today. If you or someone you know has a question regarding equitable distribution, call the Williams Law Group, at (908) 810-1083, today to learn more about how we can assist you.
