Couples preparing for divorce in New Jersey typically need to address several important practical issues. The division of marital property can be a difficult process as people prepare for divorce. Certain assets, in particular, can make property division more of a challenge.
Under the equitable distribution rules that apply in New Jersey divorces, there are many different ways for couples to address their shared property and financial obligations. They either work out settlements with each other or prepare to take the matter to family court. A judge can make the final decisions on major assets and debts acquired during the marriage if spouses can’t agree on their own terms. Certain assets, including the following, commonly become stumbling blocks during property division negotiations.
Real property
The marital home where the couples live together, the cabin where they enjoyed vacations and investment properties they purchased can be worth hundreds of thousands of dollars each. They can also have significant emotional value for the spouses. Couples often disagree about what properties are worth and who should retain possession of them in a divorce. Valuing the property is one of several steps that couples have to complete to fairly address real property when they divorce.
Retirement savings and pensions
The money people set aside throughout their careers and the pension benefits they accumulate through employment represent not just diligence and self-sacrifice but future financial comfort. Additionally, it’s quite common for people to have accrued pension benefits or set aside retirement savings before marriage. Their retirement savings or pension benefits may be partially marital property and partially separate property. Between trying to find ways to divide the assets without triggering taxes and penalties and determining how much is subject to division, retirement resources are a common property division pitfall.
Business holdings
Whether one spouse took over the family business when their parents retired or started a professional practice when they finished graduate school, the business they own might be one of the most valuable marital resources. Spouses may have a difficult time valuing the business. There can also be challenges in scenarios where both spouses currently work at the company.
New Jersey couples with high-value, complex resources often face more difficult divorce proceedings than usual. Identifying assets that may need special consideration during a New Jersey divorce can help people develop appropriate strategies and establish reasonable expectations for the divorce process. The sooner people begin planning, the better their chances of preserving high-value resources and obtaining a fair property division outcome.
