New Jersey Equitable Distribution Overview

Equitable Distribution is defined as “the fair, but not necessarily equal, division between former spouses of property acquired during the marriage” and is one of four main subject areas covered during divorce mediation along with (1) Parenting (2) Child Support and (3) Spousal Support / Alimony.

To begin the process of equitable distribution in NJ, the mediator will ask each party to produce a list of marital assets and their value including, but not limited to:

  • Real estate held as well as copies of the deed
  • Checking, savings, money markets and CD’s
  • 401(k) Plans, IRAs, pensions or non-retirement investments
  • Privately held business should an individual be self-employed
  • Year, mileage, make and model of any automobiles, motorcycles, boats or RV’s
  • Furniture, appliances and decorative items if of significant value

In addition to the equitable distribution of assets, the mediator will ask each party to produce a list of marital liabilities and their balances including, but not limited to:

  • Mortgages on the couple’s property including the first mortgage as well as any home equity loans
  • Automobile loans
  • Personal loans
  • Credit cards
  • Potential taxes owed to the IRS (especially important in the early part of the year when the couple may not have filed their previous year’s taxes) etc.

These items will be reviewed by the mediator along with copies of the couple’s tax returns, pay stubs and credit reports and a balance sheet will be prepared which will serve as the basis for the discussion regarding the division of the couple’s marital assets and liabilities. As every family’s circumstances are unique, it is always best to consult with an Accredited Professional Mediator who can help you and your spouse understand the principles behind equitable distribution in detail and determine what an appropriate division of assets and liabilities would be. With that in mind, please note this document is intended to give a general overview of the subject matter and not to provide any specific legal advice.

Should you have any specific questions regarding NJ equitable distribution in your particular situation, please contact us to set up a consultation for you and your spouse either via telephone or in one of our many convenient Northern or Central New Jersey locations where we will discuss the specifics of your case and help you understand the potential options and solutions that lie ahead for each of you.