What Happens to the House in a New Jersey Divorce?

The Somerville Divorce Lawyers at Lyons & Associates, P.C. Guide Clients Through Every Phase of the Divorce Process

If you and your spouse are going through a divorce, you know that it can be a complicated and overwhelming process, particularly if you have children. In addition to addressing complex parenting and custody issues and spousal support, determining what happens to the marital home is one of the most important issues that must be resolved as you navigate the divorce process. While other states divide all marital property equally, New Jersey is an equitable distribution state, which means that the house and all other marital property will be distributed in a manner the court deems fair and just.

If you and your spouse are able to come to an agreement about how your home and other marital property should be distributed, those terms will be incorporated into your divorce agreement. However, if you are unable to reach an agreement on your own, the court will decide what happens to the home and other marital property based on a range of factors, including but not limited to:

  • The duration of the marriage.
  • The age and health of both spouses.
  • Each party’s contribution to the acquisition of assets.
  • Child custody and economic needs of the children.
  • Whether a trust fund might be needed to provide for future medical or educational costs for spouses or children.
  • Either party’s contributions as a homemaker.
  • Each party’s debts and liabilities.
  • The income and earning capacity of each party.
  • Each party’s financial situation following the divorce.
  • The standard of living established during the marriage.
  • Each spouse’s contributions to the other party’s education and earning potential.
  • Whether either spouse had to put off career goals during the marriage.
  • The tax consequences each spouse may face due to the division.

Is the House Marital or Separate Property?

The first step in determining what happens to the house is identifying whether the home is marital property or separate property. Any property or assets you or your spouse acquired before you married are considered separate property. Examples of separate property include cars, inheritances, and valuable art or antiques. This would also include the marital home if you or your spouse owned the house before marriage. Any property or assets you and your spouse acquired after you married are generally considered marital property and subject to the equitable property division in the divorce. This includes the marital home. Keep in mind that separate property can become marital property if it becomes commingled, which will be subject to division between you and your spouse.

Separate property can become commingled in the following ways:

  • Intermingling of funds.
  • Joint ownership.
  • Improper record-keeping.

What Are the Options for Dividing the Marital Home?

Your home is likely one of the most significant investments you and your spouse made during your marriage. As a result, it is highly recommended that your home be appraised by a professional who can determine the property’s value. The house cannot be split in half, but there are a range of options when it comes to dividing and distributing the marital home, including the following:

  • Sell the house and split the proceeds. This allows you and your spouse to split the profits from the sale. The profits may be distributed equally or unequally if other properties or assets are included in the property division.
  • One spouse buys out the other. If you or your spouse want to stay in the home, either of you can buy out the other’s share of the home’s equity and gain full ownership. The mortgage may need to be refinanced if the home is not owned outright. The costs associated with a buyout will need to be addressed in the divorce agreement.
  • Maintain the status quo. In some cases, both spouses will agree to maintain joint home ownership for the children’s sake. However, this can be expensive and challenging if you have to maintain separate residences for an extended period of time.

The Somerville Divorce Lawyers at Lyons & Associates, P.C. Guide Clients Through Every Phase of the Divorce Process

If you and your spouse are going through a divorce and have questions or concerns about the marital home, contact the Somerville divorce lawyers at Lyons & Associates, P.C. Our highly skilled legal team will review the details of your case. To schedule a free, confidential consultation, call us today at 908-575-9777 or contact us online. Located in Somerville, Morristown, and Freehold, New Jersey, we serve clients in Somerset, Woodbridge, Morristown, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, Morris Plains, and Monmouth County.