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.

To learn more about your rights and responsibilities as they relate to equitable distribution, including potential tax consequences of such distribution, please call my office at your earliest opportunity to arrange for an initial consultation.

Stephanie Cañas Hunnell
801 Twelfth Avenue
Belmar, New Jersey 07719
phone: 732-749-3500
fax: 732-749-3503

Stephanie Cañas Hunnell Attorney at Law represents clients throughout New Jersey, including Belmar, Allenhurst, Asbury Park, Avon by the Sea, Bordentown, Bradley Beach, Brielle, Brick, Brunswick, Camden, Deal, Eatontown, Freehold, Jackson, Hazlet, Howell, Interlaken, Lakewood, Lawrenceville, Little Silver, Long Beach Island, Long Branch,  Manalapan, Manasquan, Millstone, Mount Holly, Neptune, Ocean, Ocean Grove, Oakhurst, Point Pleasant, Princeton, Red Bank, Sea Girt, Spring Lake, Trenton, Toms River, Wall, Woodbridge and Burlington county, Mercer county, Middlesex county, Monmouth county and Ocean county.