Property division is often an especially contentious part of the divorce process. If that property includes vacation homes, rental units, or investment buildings, additional complications arise and can add to the tension. Understanding key factors about these properties can minimize disputes and guide a smoother division process.
How New Jersey handles property division
New Jersey follows “equitable distribution,” meaning a court divides property fairly, but not always equally. The court looks at many factors, including the duration of the marriage, the income of both spouses, and each person’s contribution to buying or improving the property. If a couple can’t agree on who gets what, a judge will decide.
Marital property includes anything bought or gained during the marriage. If the couple buys real estate while married, both people usually have a right to it. Even if one person’s name is on the deed, the court may still treat it as marital property. This includes real estate bought as an investment, even if it doesn’t generate income yet.
Separate property includes anything one person owned before the marriage or received as a gift or inheritance. For example, if one person bought a beach house before the marriage and never added the spouse’s name, it may stay with the original owner. However, if both people used the house or paid for repairs with shared money, it might become part of the marital estate.
What happens to real estate after divorce
The court has a few options when it comes to real estate. One person might keep the property and buy out the other person’s share. In other cases, the couple may need to sell the property and split the profit. For rental or investment properties, the court may also consider how much income the property makes and who manages it.
Real estate can hold both memories and financial value. Going into negotiations with an understanding of how New Jersey law treats these assets can help people plan better during divorce and protect what matters most.