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Equitable Distribution

In New Jersey, the process of separating a couple’s financial lives is governed by the principle of equitable distribution, a legal framework used to divide marital assets and debts fairly, though not necessarily equally. New Jersey utilizes a comprehensive set of factors to determine what constitutes a "fair and just" division. In working through the equitable distribution process on behalf of clients, our family law attorneys employ a nuanced approach intended to ensure that all relevant financial contributions and circumstances are properly considered. The process includes distinguishing between property acquired during the marriage and property owned by either spouse before the marriage or acquired through inheritance or gifts specifically to one spouse during the marriage. It is essential to carefully categorize assets to determine whether the asset should be included in the equitable distribution analysis. Thereafter, our attorneys work with professionals to establish an accurate valuation of holdings, which may include real estate, financial and retirement accounts, tangible assets such as personal property, and intangible assets such as intellectual property. The assistance of forensic accountants and business valuation experts is often required when valuing business assets, such as closely held businesses and professional practices.

Equitable distribution also requires the division of marital debts such as mortgages, credit card debt, loans and other liabilities to determine a fair allocation of those obligations.

New Jersey courts consider a statutory list of factors when making equitable distribution decisions, including the length of the marriage, age and health of the parties, the standard of living established during the marriage, the existence of prenuptial or postnuptial agreements, the income and ongoing earning capacity of the parties, and numerous other economic and lifestyle factors which may be relevant to the equitable distribution of assets.

Published Cases

  • In Leonard v. Leonard (2012), represented the defendant in a New Jersey Chancery Division decision addressing the valuation and equitable distribution of complex marital assets, providing guidance on how courts should analyze and allocate business and investment interests in high-asset divorce proceedings. 
  • In Ciasulli v. Ciasulli (2004), represented the non-titled spouse in a landmark New Jersey divorce case, securing a trial and New Jersey Appellate Division ruling recognizing that, where significant delay occurs between complaint and trial, even an “active” business may experience passive appreciation subject to equitable distribution. Following a period of nearly 10 years, the court awarded the firm’s client millions of dollars in additional distributive share based on post-complaint passive growth. 
  • In Sculler v. Sculler (2001), represented the defendant in a New Jersey Chancery Division decision addressing the burden of proof for equitable distribution of appreciation in premarital and inherited assets, providing guidance on treatment of “active” immune property in divorce proceedings. 
  • In Balsamides v. Perle (1999), a nationally recognized case, achieved a unanimous decision before the New Jersey Supreme Court establishing limits on the use of marketability discounts in forced buyouts of closely held companies. Balsamides is a leading valuation case for partnership or corporate dissolutions in New Jersey and is also used as a valuation case in divorce proceedings in the state.
  • In Rolle v. Rolle (1987), represented the plaintiff in a New Jersey Chancery Division decision resolving contested financial and equitable distribution issues, contributing to the development of New Jersey case law governing the treatment of marital property in divorce matters. 

Of Interest