Mediation is fast becoming a popular dispute-resolution technique in divorcing couples. Spouses can handle nearly every aspect of their divorce through mediation, including debt and asset division. It is crucial that both parties understand their rights and options when it comes to divorce mediation. Reach out to an experienced Mountainside property distribution attorney to learn more and schedule a consultation today.
Is New Jersey an Equitable Distribution State?
Yes, New Jersey is an equitable distribution state. This means that during a divorce, marital assets will be divided in a way that is fair but not necessarily equal. Joint assets will not be simply split down the middle and half given to each party. Instead, each spouse’s financial situation will be examined including income, earning potential and capacity, education levels, contributions made to the marriage, etc. Then, the property will be divided based on needs and fairness.
What is the Process for Handling Asset Division During Divorce Mediation?
While every relationship and divorce is unique, the steps for determining asset division during mediation are generally as follows.
- Gather financial information: Both parties must provide complete and full disclosure of their financial situation including income statements, bank statements, investments, debts, and property valuations. It is important that both spouses are transparent and do not attempt to hide any assets.
- Categorize assets: In New Jersey, only marital property is subject to asset distribution, so all assets must be identified as either marital or separate property. Marital property includes assets acquired during the marriage while separate property is generally inherited gifts or assets owned before the marriage.
- Value assets: Once assets have been identified, both parties must agree on their value. This often requires professional judgment and appraisals, particularly for items like real estate, businesses, or other valuables. Accurately estimating value is critical and will impact how assets are divided.
- Negotiations: When all relevant information is gathered, the couple can begin negotiating how to divide the assets and debts. Mediation allows for flexible arrangements which can benefit negotiations. During this process, the mediator will facilitate discussions and allow both parties to voice their wishes.
- Draft an agreement: Once an agreement is reached, the mediator will draft a formal document outlining the agreed-upon terms. Both parties are encouraged to review the document with their attorneys to ensure it adequately reflects the agreement made.
- Finalize the agreement: Once both parties have agreed to the terms and reviewed the document, it can be signed and submitted to the court for approval. The court will review the document to ensure it is fair before approving it.
Mediation can make the asset division process easier for both parties. It allows the spouses to maintain total control over the outcome of the distribution and gives them the freedom to create flexible and unique arrangements that suit both of their needs. Talk to an experienced lawyer about mediation and whether or not it is right for you.
