Divorcing couples in New Jersey typically need to split their property. The longer they stayed married, the more shared assets they may have. Marital property division tends to be a very complicated process, as spouses may have a hard time agreeing on a fair way to divide their possessions.
In some cases, they may even end up going to court and asking a judge to divide their property because they cannot agree on certain details. Those trying to plan for the future often want to understand what assets they can retain after divorce so they can visualize the future more effectively. Thankfully, there are certain assets that people can protect as separate property when they divorce.
What assets are not subject to division?
A marital estate that is subject to the equitable distribution law consists of all income earned during the marriage and any assets acquired with marital income. Even in scenarios where one spouse earns substantially more than the other, their income and accrued property are likely still subject to division.
Separate property, on the other hand, usually remains the property of one spouse after a divorce. Assets owned before marriage or after legal separation are typically separate property. People can also reinforce the protection of certain assets as separate by signing prenuptial or postnuptial agreements establishing one spouse as the sole owner of those assets.
Property received as an inheritance or a gift may also be separate property. In some cases, claims of commingling or combining separate property with marital property can complicate the process of protecting assets as separate.
Conducting a thorough review of financial records and ownership documents can help people as they prepare for property division proceedings. Assets that are separate property can remain the sole possession of one spouse even after they divorce.
