A divorce is already a difficult and emotionally exhausting journey. The road ahead can seem overwhelmingly complicated when you add the complication of owning property in multiple states. You might feel overwhelmed by the idea of navigating different state laws and worried about safeguarding the assets you’ve worked so hard to build. It feels unfair that a state border could create another significant obstacle to achieving a just and fair resolution.
At Weiner Law Group, LLP, we understand the stress and uncertainty you’re experiencing when you have to divide assets across states. For over 35 years, our attorneys have offered clear guidance and strong advocacy to help clients move forward confidently, regardless of the complexity of their financial situation. Contact us today by calling us at 973-403-1100 for a consultation.
Understanding Key Concepts in Multi-State Property Division
When discussing divorce, the terms “assets” and “property” are often used interchangeably. Assets refer to everything of value you or your spouse owns. These two types of property are real property, which includes land and any structures on it, and personal property, which covers everything else, from bank accounts and investments to cars and personal belongings. Understanding how different states view these assets is the first step to dividing assets across states.
Property Laws in New Jersey: The Principle of Equitable Distribution.
New Jersey is an equitable distribution state. This legal standard means that the court will divide all property acquired during the marriage (marital property) in a fair and just manner, which does not always mean a 50/50 split. A judge will consider various factors listed in state law, such as the length of the marriage, each spouse’s financial situation, and their contributions to the assets, to reach an equitable outcome that reflects the unique circumstances of your marriage.
Property Laws in Other States: The Principle of Community Property
One of the primary challenges is how property laws vary by state in divorce proceedings. California, Texas, Arizona, and six other states follow the community property system used in the U.S. In this system, assets acquired during the marriage, except gifts or inheritances intended for a specific spouse, are considered jointly owned and are typically divided equally.
Community property states also have a rule for couples who move there from a state like New Jersey. They use the concept of quasi-community property. This rule considers assets that would have been community property had the couple lived together when they were acquired to determine property division in the event of divorce. Think of it as a way to ensure fairness and prevent a spouse from losing property rights just because they changed residence.
Jurisdictional Challenges: Can a New Jersey Court Divide Out-of-State Assets?
Yes. A New Jersey court can order the division of property in other states. The court can do this because of the difference between the two types of legal authority, or jurisdiction, which include:
- In rem jurisdiction. In rem is the court’s power over a physical object, like a house. A New Jersey court does not have in rem jurisdiction over a property in Florida.
- In personam jurisdiction. In personam is the court’s power over the people involved in the case. Because the court has this authority over you and your spouse, it can legally order you to take action regarding your out-of-state property.
While the court can’t reach into another state to seize a house, it has the full authority to order you, a person under its jurisdiction, to sell that house and divide the proceeds. This jurisdictional law is the core principle behind handling out-of-state assets.
Dividing Real Estate in Multiple States
The practical approach to asset distribution involves three main steps: inventory, valuation, and distribution. First, all assets must be identified and accounted for regardless of location. Next, an appraiser should determine the fair market value. An accurate valuation is especially critical for out-of-state assets, as market conditions can vary significantly. A thorough appraisal protects your financial interests and provides the court with the precise, objective data needed for an equitable division.
Finally, the court will order the distribution of the assets as follows:
- Selling the property. Selling is the simplest way for you and your spouse to split the cash proceeds.
- A buyout. One spouse retains the property and compensates the other spouse for their share of the equity.
- An offset. One spouse retains the out-of-state asset, while the other receives marital assets of equal value, such as a larger share of a retirement account or the marital home in New Jersey.
This process applies not only to real estate but also to all kinds of property, including business interests, retirement accounts, investment portfolios, and valuable personal property located in other states.
Why Choose Weiner Law Group for Your Complex Divorce?
When you need to divide assets across states, you need a law firm with the experience and resources to protect your interests. Weiner Law Group, LLP, has been a pillar of the New Jersey legal community since 1988, with our firm’s reputation built on 37 years of achieving successful outcomes for our clients.
Our team of 61 attorneys across five New Jersey locations includes professionals recognized in the 31st edition of The Best Lawyers in America. This accolade highlights our outstanding commitment to legal excellence and exceptional client service.
As a full-service firm, we have skilled attorneys in various departments ready to handle any issues that arise in your divorce, from business valuation to real estate transactions. Our experience allows us to navigate the complexities of multi-state asset division and advocate effectively for the resolution you deserve.
Take Control of Your Financial Future
Facing a divorce with assets in multiple states can feel isolating, but you do not have to manage it alone. We can help you create a comprehensive strategy to help ensure all your marital property is accounted for and divided equitably. Contact Weiner Law Group, LLP today by calling us at 973-403-1100 to move forward with a team that has the experience and dedication to guide you through this complex process.