Divorce involves many complex decisions and areas that are often legally contested, and dividing investments can be one of the most challenging aspects. In New Jersey, understanding how the process works can help you navigate this difficult time.
Equitable distribution in New Jersey
New Jersey follows the principle of equitable distribution in a divorce. This means in a contested divorce, the court will divide marital assets, including investments, fairly but not necessarily equally. The court considers several factors, such as the length of the marriage, each spouse’s income, and contributions to the marital assets.
Identifying marital vs. separate property
The first step in dividing investments is determining which assets are marital property and which are separate property. Marital property includes investments acquired during the marriage, while separate property consists of assets owned before the marriage or received as gifts or inheritances. Only marital property is subject to division in a divorce.
Valuing the investments
Once the court identifies marital investments, they will value them. This can include stocks, bonds, retirement accounts, and other investment types. Accurate valuation is crucial to ensure a fair distribution. This process might involve financial experts to assess the current value of each investment.
Planning your financial future
Dividing investments during a divorce in New Jersey requires careful consideration and planning. By staying informed and proactive, you can help ensure a fair division and plan for your financial future post-divorce. This approach can lead to a more secure and stable outcome as you move forward with your life.
