Divorce comes with many challenges. The emotional aspects of divorce can be dealt with through therapy, finding new hobbies, or just reaching out to friends and family for support. The financial side of things, which includes the separation of property, is best dealt with through legal avenues. Before one begins divorce proceedings in New Jersey, it’s helpful to understand the basics of how property is divided.
Marital property vs. separate property
There are two types of property to be considered during a divorce. Marital property is usually divided equally, although this can vary by state. It includes most earnings gained during marriage along with homes, businesses, and cars purchased while married. Separate property usually includes anything owned before the marriage. An inheritance, gift, or legal settlement is also considered separate property in most states and is not subject to asset division in divorce.
High-asset divorces can be complicated because there are many different types of assets that need to be divided. Separate assets and marital assets can be difficult to categorize, especially when one has been married for many years. Prenuptial agreements can make the asset division less complicated, but not everyone has such an agreement.
Seek counsel for help with asset division
While many couples may want to work the divorce out on their own, this is not usually advisable. An experienced New Jersey family law attorney can provide guidance on settling assets to help those going through divorce understand their options. Most people feel very emotional during divorce, which can make it hard to make sound decisions. Legal advice goes a long way in helping one understand their options when it comes to financial matters during divorce.