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Divorce in New Jersey involves fair splitting of assets

The process of getting divorced understandably can be an unpleasant experience from an emotional standpoint in New Jersey. However, it can be especially daunting financially if one of the spouses has more money than the other. Being prepared for what is to come is the first important step in the divorce process.

The state of New Jersey is known as an equitable distribution state. Therefore, this state along with 40 other states recognizes a marital estate as being composed of assets that each spouse has acquired after the wedding. A judge will divide these assets fairly between the two parties.

The fair division of assets in an equitable distribution state takes place when the judge considers factors such as the earning potential and income of each party as well as both people's personal assets. The judge will also consider the individual contributions and financial needs of each party. Assets that will be split in this manner include real estate, cars, furniture, retirement accounts, income, jewelry and stocks. This is somewhat different than what happens in a community property state, where a marital estate is automatically split 50/50.

However, if two people are able to see eye to eye during the divorce process in New Jersey, they may be able to avoid further court intrusion. They may be able to use the process of mediation or negotiation, for example, to work toward a settlement that is mutually beneficial and satisfactory. The benefit of reaching a settlement without resorting to litigation is that the divorce proceeding is often more amicable and less costly.

Source: businessinsider.com, "The best states to get divorced in if you are much richer than your spouse", Tanza Loudenback, Nov. 16, 2016

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