THRESHOLD ISSUE: IS THE MARITAL RESIDENCE AN ASSET THAT IS SUBJECT TO EQUITABLE DISTRIBUTION?
In most New Jersey cases the home is considered joint marital property and will be subject to equitable distribution at divorce. How do we determine if the home is marital property? The main issue we look at is when the property was purchased.Typically, if the marital residence was purchased during the marriage, it is likely to be considered a marital asset.
If the house was purchased before the marriage by one spouse, it may be considered separate property and may be awarded solely to the spouse who purchased it. The reason we have to use the word ‘may’ in this context is that there are special circumstances under which property that would otherwise be considered separate property may become joint property. If there are questions about who the owner(s) of the marital home are, it is best to discuss the issue with an attorney.
OPTIONS FOR DISTRIBUTION OF MARITAL RESIDENCE
Once it is determined that the marital residence is an asset that is subject to equitable distribution, the question becomes how to distribute it. With things like bank accounts it is easy to divide the asset into parts and give some of it to each former spouse. With real property however, it is trickier. Below are three options for the equitable distribution of a marital residence in New Jersey. Continue Reading →