wHAT IS EQUITABLE DISTRIBUTION AND WHO GETS IT?
Equitable distribution is a statutorily created right for the distribution of assets and debts, which was traditionally limited to married couples. As our society has evolved, so has New Jersey's Equitable Distribution Statue. On or about February 20, 2007, the Equitable Distribution Statue was amended to extend to Civil Unions. No such amendment was created for Domestic Partnerships. Thus, there is no statutory requirement that the Court grant a domestic partner with equitable distribution.
The purpose of equitable distribution is to apportion property and debt beneficially acquired during the course of the marriage or civil union in a manner that is fair (equitable) to both parties. This is true whether or not that property or debt is titled in one or both of the parties' names.
Over time, Courts have established a three step process to analyze what property should be distributed and in what percentages. Those steps include 1) determining whether a particular asset is subject to be distributed; 2) what the value of that asset is; and 3) what allocation each party is to receive. To determine this allocation Courts are required to consider sixteen factors, which include:
a. The duration of the marriage or civil union;
b. The age and physical and emotional health of the parties;
c. The income or property brought to the marriage or civil union by each party;
d. The standard of living established during the marriage or civil union;
e. Any written agreement made by the parties before or during the marriage or civil union concerning an arrangement of property distribution;
f. The economic circumstances of each party at the time the division of property becomes effective;
g. The income and earning capacity of each party, including educational background, training, employment skills, work experience, length of absence from the job market, custodial responsibilities for children, and the time and expense necessary to acquire sufficient education or training to enable the party to become self supporting at a standard of living reasonably comparable to that enjoyed during the marriage or civil union;
h. The contribution by each party to the education, training or earning power of the other;
i. The contribution of each party to the acquisition, dissipation, preservation, depreciation or appreciation in the amount or value of the marital property, as well as the contribution of a party as a homemaker;
j. The tax consequences of the proposed distribution to each party;
k. The present value of the property;
l. The need of a parent who has physical custody of a child to own or occupy the marital civil union residence and to use or own the household effects;
m. The debts and liabilities of the parties;
n. The need for creation now, or in the future, of a trust fund to secure reasonably foreseeable medical or educational costs for a spouse or children; and
o. Any other factors which the court may deem relevant.
N.J.S.A. 2A:34-23.1.
While all factors must be considered by the Court, they are not necessarily weighted equally. What is more, there is no "formula" to determine what percentage each party would be entitled to, and a 50/50 split is not automatic.
The purpose of equitable distribution is to apportion property and debt beneficially acquired during the course of the marriage or civil union in a manner that is fair (equitable) to both parties. This is true whether or not that property or debt is titled in one or both of the parties' names.
Over time, Courts have established a three step process to analyze what property should be distributed and in what percentages. Those steps include 1) determining whether a particular asset is subject to be distributed; 2) what the value of that asset is; and 3) what allocation each party is to receive. To determine this allocation Courts are required to consider sixteen factors, which include:
a. The duration of the marriage or civil union;
b. The age and physical and emotional health of the parties;
c. The income or property brought to the marriage or civil union by each party;
d. The standard of living established during the marriage or civil union;
e. Any written agreement made by the parties before or during the marriage or civil union concerning an arrangement of property distribution;
f. The economic circumstances of each party at the time the division of property becomes effective;
g. The income and earning capacity of each party, including educational background, training, employment skills, work experience, length of absence from the job market, custodial responsibilities for children, and the time and expense necessary to acquire sufficient education or training to enable the party to become self supporting at a standard of living reasonably comparable to that enjoyed during the marriage or civil union;
h. The contribution by each party to the education, training or earning power of the other;
i. The contribution of each party to the acquisition, dissipation, preservation, depreciation or appreciation in the amount or value of the marital property, as well as the contribution of a party as a homemaker;
j. The tax consequences of the proposed distribution to each party;
k. The present value of the property;
l. The need of a parent who has physical custody of a child to own or occupy the marital civil union residence and to use or own the household effects;
m. The debts and liabilities of the parties;
n. The need for creation now, or in the future, of a trust fund to secure reasonably foreseeable medical or educational costs for a spouse or children; and
o. Any other factors which the court may deem relevant.
N.J.S.A. 2A:34-23.1.
While all factors must be considered by the Court, they are not necessarily weighted equally. What is more, there is no "formula" to determine what percentage each party would be entitled to, and a 50/50 split is not automatic.
How will a new jersey judge decide how much alimony is appropriate?
If you are not able to settle your case, you will be scheduled for a trial date. During the trial, you will give testimony about your life style, income, assets, and overall standard of living during the marriage. In light of this testimony, the judge will consider thirteen factors, first to determine whether alimony is appropriate; and if it is, what type of alimony and how much.
What are the different types of alimony
There are four different types of alimony a judge can award. When alimony is appropriate, the court can award any one or a combination. There is permanent alimony, rehabilitative alimony, limited duration alimony, and reimbursement alimony.
What factors will the court consider when setting alimony?
Pursuant to N.J.S.A. 2A:34-23a:
In all actions brought for divorce, dissolution of a civil union, divorce from bed and board, legal separation from a partner in a civil union couple or nullity the court may award one or more of the following types of alimony: permanent alimony; rehabilitative alimony; limited duration alimony or reimbursement alimony to either party. In so doing the court shall consider, but not be limited to, the following factors:
(1)The actual need and ability of the parties to pay;
(2)The duration of the marriage or civil union;
(3)The age, physical and emotional health of the parties;
(4)The standard of living established in the marriage or civil union and the likelihood that each party can maintain a reasonably comparable standard of living;
(5)The earning capacities, educational levels, vocational skills, and employability of the parties;
(6)The length of absence from the job market of the party seeking maintenance;
(7)The parental responsibilities for the children;
(8)The time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;
(9)The history of the financial or non-financial contributions to the marriage or civil union by each party including contributions to the care and education of the children and interruption of personal careers or educational opportunities;
(10) The equitable distribution of property ordered and any payouts on equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just and fair;
(11) The income available to either party through investment of any assets held by that party;
(12) The tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment; and
(13) Any other factors which the court may deem relevant.
When a share of a retirement benefit is treated as an asset for purposes of equitable distribution, the court shall not consider income generated thereafter by that share for purposes of determining alimony.
In all actions brought for divorce, dissolution of a civil union, divorce from bed and board, legal separation from a partner in a civil union couple or nullity the court may award one or more of the following types of alimony: permanent alimony; rehabilitative alimony; limited duration alimony or reimbursement alimony to either party. In so doing the court shall consider, but not be limited to, the following factors:
(1)The actual need and ability of the parties to pay;
(2)The duration of the marriage or civil union;
(3)The age, physical and emotional health of the parties;
(4)The standard of living established in the marriage or civil union and the likelihood that each party can maintain a reasonably comparable standard of living;
(5)The earning capacities, educational levels, vocational skills, and employability of the parties;
(6)The length of absence from the job market of the party seeking maintenance;
(7)The parental responsibilities for the children;
(8)The time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;
(9)The history of the financial or non-financial contributions to the marriage or civil union by each party including contributions to the care and education of the children and interruption of personal careers or educational opportunities;
(10) The equitable distribution of property ordered and any payouts on equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just and fair;
(11) The income available to either party through investment of any assets held by that party;
(12) The tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment; and
(13) Any other factors which the court may deem relevant.
When a share of a retirement benefit is treated as an asset for purposes of equitable distribution, the court shall not consider income generated thereafter by that share for purposes of determining alimony.