Division of marital property is an important part of the divorce process. It can also become contentious. Couples will disagree about how assets should be split up — especially significant financial assets.
The first thing to note is that you are only dividing marital assets — not separate assets. That means all of the property that you own does not necessarily have to be divided with your soon-to-be ex.
This is important if you have received an inheritance from your own parents or anyone else. Say that your parents left you $2 million, and then your spouse filed for divorce. They say you should have to give them $1 million. However, an inheritance actually starts off as a separate asset in most cases, so you may not have to divide it at all.
Commingling the inheritance
One thing to keep an eye on is how you used the inheritance during your marriage. If you simply set it aside in an account under your own name and did nothing else with it, it likely retains its status as a separate asset.
However, if you shared the money with your spouse, pit it in a jointly owned account, invested it along with shared financial assets or used it to purchase major marital assets – such as a family home – then you have likely commingled it. Mixing assets together can change their status. If your inheritance was commingled, it may become a marital asset that then does have to be divided with your spouse if they seek part of it.
Note, however, that New Jersey is an equitable distribution state. That means courts divide marital assets equitably according to each spouse’s needs, which doesn’t necessarily mean equally or 50-50.
This is a fairly complex issue and couples often disagree, so it is crucial that you have experienced legal guidance to help understand all of your legal options as you work through the property division process.