What does Equitable Distribution mean and how are assets and debts divided in Divorce?
New Jersey is an Equitable Distribution state, which means the distribution of assets and debts in a divorce action must be fair and reasonable based on the facts of each particular case, and applying statutory factors. As a general rule, if a couple has been married for a long period of time, the marital assets, including real estate, personal property and retirement accounts will be divided equally between them. Debts are generally allocated equally, but not necessarily, depending on the incomes of the parties, and the distribution of assets at the time of divorce. Because New Jersey is a “No Fault” state, the fault of a party (the grounds for divorce, i.e. adultery, extreme mental cruelty, irreconcilable differences) will have no bearing on the division of assets in a divorce action. The exception to this rule is where a party can prove that a spouse intentionally or fraudulently dissipated or failed to disclose an asset in contemplation of the divorce, or during the divorce action.
