Divorce can be a difficult process. Not only are you navigating the emotional journey of a divorce, but you also need to address several legal and financial issues. Managing the financial aspects of a divorce can be an especially charged process. If you are going through a divorce, you probably have several financial questions. Below, we share some common financial questions people often have when going through a New Jersey divorce.
1. What are considered marital assets?
Only marital assets are divided between divorcing spouses in a New Jersey divorce. One of the common questions divorcing spouses ask is what constitutes marital assets. Marital assets include any property or financial resources obtained during the marriage. Any assets you owned before marriage and any inheritances are generally not considered marital assets. Instead, they are considered separate assets. However, commingling marital and separate assets during marriage can lead to the separate assets losing their separate status and being considered marital assets. Commingling is when you mix separate and marital assets. For instance, if separate funds are put in a joint account, they can become commingled.
2. How are marital assets divided during divorce?
New Jersey is referred to as an “equitable distribution state.” Under the equitable distribution rule, all marital assets are divided equitably (fairly) between the parties. This does not necessarily mean a 50/50 split. If the court finds it fair and necessary, it can order an unequal distribution of marital assets. New Jersey courts aim to achieve a fair distribution of marital assets based on several factors, including the duration of the marriage, the health of each spouse, each party’s income and earning capacity, each spouse’s contribution to the marriage, the standard of living established in the marriage, and written agreements, such as prenuptial or postnuptial agreements.
3. How are debts divided during divorce?
Marital debts, like assets, are subject to equitable distribution. Marital debts are those incurred during the marriage for the benefit of the marriage. Examples include credit card debt, mortgages, and vehicle debt.
4. How much alimony will be awarded?
Alimony is the monetary support one ex-spouse provides to the other after divorce. In New Jersey, alimony is awarded when it is determined that one spouse has an actual need and the other has the ability to pay. When determining the amount of alimony to award, courts consider several factors, including the duration of marriage, the standard of living established in the marriage, the earning capabilities of each spouse, and the age and health of the parties.
5. How much child support will be awarded?
After a divorce, both parents must continue financially providing for their children. This is where child support comes in. In New Jersey, child support is calculated using the Incomes Shares Model, which calculates each parent’s share of child support based on their total income.
6. What are the tax implications of a divorce?
There are several tax implications associated with a New Jersey divorce. For instance, retirement accounts need to be addressed. Splitting retirement accounts during a divorce can have tax consequences. It is advisable to consult a tax professional to understand how your taxes will be impacted.
Contact Us for Legal Help
If you have questions or need help with the divorce process, contact our skilled New Jersey family law attorney at the Trabosh Law Firm.