Property Division Attorney

When a marriage ends, the fear of losing your home, your retirement savings, or a business you built over decades is often the most consuming concern. Property division, legally called equitable distribution in New Jersey, determines who keeps what and who is responsible for which debts. The stakes are high and the rules are complex. At Raghnal Burroughs in Livingston, our attorneys protect what matters most to you, whether your case resolves through negotiation or requires a courtroom fight.

Equitable Distribution, Not a 50/50 Split

Many people assume that divorce means splitting everything down the middle. In New Jersey, that is not the law. New Jersey is an equitable distribution state under N.J.S.A. 2A:34-23.1, which means marital property is divided fairly, but fairly does not always mean equally. A court weighs a list of statutory factors and has broad discretion to craft a distribution that reflects the specific history and circumstances of the marriage.

Marital Property vs. Separate Property

What Is Marital Property?

Marital property is generally everything either spouse acquired from the date of marriage through the date the divorce complaint was filed. It does not matter whose name is on the account or the deed. Common examples include:

• The family home purchased during the marriage
• Retirement accounts and pension benefits accrued during the marriage
• Brokerage accounts and investment portfolios funded with marital income
• Business interests started or grown during the marriage
• Vehicles, furniture, and personal property acquired during the marriage
• Marital debt, including mortgages, credit cards, and personal loans

What Is Separate Property?

Separate property is not subject to equitable distribution. It includes:

• Assets owned by either spouse before the marriage
• Inheritances received by one spouse, even during the marriage, if kept separate
• Gifts from third parties given to one spouse individually
• Personal injury compensation for pain and suffering
• Assets excluded by a valid prenuptial or postnuptial agreement

The Statutory Factors for Equitable Distribution

Under N.J.S.A. 2A:34-23.1, New Jersey courts consider the following factors when dividing marital property:

1. The duration of the marriage
2. The age and physical and emotional health of the parties
3. The income or property brought to the marriage by each party
4. The standard of living established during the marriage
5. Any written agreement made by the parties (prenuptial/postnuptial)
6. The economic circumstances of each party at the time division becomes effective
7. The income and earning capacity of each party
8. The contribution by each party to the education, training, or earning power of the other
9. The contribution of each party to the acquisition, dissipation, preservation, depreciation, or appreciation of marital property, including homemaker contributions
10. The tax consequences of the proposed distribution
11. The present value of the property
12. The need of a parent with physical custody to own or occupy the marital residence
13. The debts and liabilities of the parties
14. The need for trust funds for medical or educational costs
15. The extent to which a party deferred achieving their career goals
16. Any other factors the court may deem relevant

Complex Assets: Where Cases Are Won or Lost

Business Valuation

If either spouse owns a business, professional practice, or closely held company, that interest must be valued as of the date of the complaint. There are multiple accepted methodologies (income approach, asset approach, market approach), and experts routinely reach very different numbers. We work with credentialed business appraisers and forensic accountants to present a defensible, well-supported valuation.

New Jersey courts distinguish between enterprise goodwill (belonging to the business, and thus marital) and personal goodwill (belonging to the individual, and excluded from distribution). Getting this distinction right can mean hundreds of thousands of dollars.

Retirement Accounts and QDROs

The marital portion of a 401(k), IRA, pension, or deferred compensation plan is subject to equitable distribution. Dividing a 401(k) or pension requires a Qualified Domestic Relations Order (QDRO), a specialized court order that instructs the plan administrator to pay a portion of the benefit to the non-participant spouse without triggering taxes or early withdrawal penalties. Our attorneys draft and negotiate QDROs to ensure accuracy.

Stock Options and Restricted Stock Units

Unvested stock options and RSUs are frequently contested. New Jersey courts apply a time-rule formula to determine what portion of unvested equity was earned during the marriage and is therefore marital.

Real Estate

The family home is often the most emotionally charged asset. The options are generally: one spouse buys out the other, the home is sold and proceeds divided, or the parties agree to a deferred sale. We address tax consequences of each option, including capital gains exposure.

Uncovering Hidden Assets

In some cases, one spouse attempts to conceal income or undervalue assets. New Jersey law requires both parties to complete a Case Information Statement (CIS) disclosing all income, assets, liabilities, and expenses under oath. Our attorneys use formal discovery tools to expose hidden assets:

• Interrogatories and document requests requiring production of financial records
• Subpoenas served on financial institutions and employers
• Depositions to question parties under oath
• Forensic accountants who specialize in tracing unreported income

When a spouse is found to have deliberately concealed or dissipated marital assets, New Jersey courts have authority to award a greater share of the remaining estate to the innocent spouse.

Frequently Asked Questions About Property Division in New Jersey

How is property divided in a New Jersey divorce?

New Jersey uses equitable distribution under N.J.S.A. 2A:34-23.1, meaning the court divides marital property fairly based on 16 statutory factors, not necessarily 50/50. Most cases settle through negotiation; when they do not, a judge decides after reviewing financial evidence and expert testimony.

Is my spouse entitled to half of everything?

Not automatically. Your spouse is entitled to an equitable, not necessarily equal, share of marital property. Separate property (pre-marital assets, inheritances kept separate, gifts from third parties) is not subject to distribution. How much your spouse receives depends on the statutory factors, particularly the length of the marriage and each party's contributions.

What happens to the house?

The home can be sold with proceeds divided, one spouse can buy out the other's equity, or the parties can agree to a deferred sale arrangement (common when children are still in school). Our attorneys evaluate all options and advise on which best serves your long-term financial interests.

Are retirement accounts divided in divorce?

Yes. The portion of any retirement account accrued during the marriage is marital property subject to equitable distribution. Dividing a 401(k) or pension requires a Qualified Domestic Relations Order (QDRO) to accomplish the transfer without tax penalties.

Related Services

Property division directly affects your alimony exposure or entitlement, and both are central issues in your divorce proceeding. If you had a prenuptial agreement, our analysis begins there. See our page on prenuptial and postnuptial agreements.

Schedule a Consultation

Protecting what you have built requires attorneys who know how to identify, value, and argue for every asset in your marital estate. Our team at Raghnal Burroughs in Livingston, New Jersey is ready to help. Call (908) 941-9319 today to schedule your consultation.