As part of a New Jersey divorce proceeding, all assets characterized as “marital” are subject to the equitable distribution laws in New Jersey and divided between the parties. The issue whether separate bank accounts are considered marital property because they existed during the marriage depends on numerous factors. These include when the account was opened, i.e., prior to the marriage, how the funds were acquired, whether the funds have been comingled with other marital assets, and whether the accounts were funded by inheritances or gifts that are considered separate property. The determination as to whether these accounts are considered “marital” is fact sensitive and requires a detailed analysis, including whether both spouses made financial contributions to the account in one party’s name.
As New Jersey is an equitable distribution state, the court will evaluate various statutory factors to reach the determination how to divide the assets in a manner that is fair and just but not necessarily in an equal manner. Some of the factors include the length of the marriage, the economic circumstances of both spouses, and the contributions, both financial and non-financial, made by each spouse to the marriage.
In addition, if one spouse maintains a premarital separate account and then revises the account to include a spouse’s name, that spouse may have comingled the assets which convert separate funds into marital assets. It is important to note that comingling alone does not automatically convert an otherwise immune asset into an asset subject to marital distribution as there are exceptions to the rule. The action by the spouse of comingling the funds is the starting point for the legal analysis, however, the final determination of whether the comingled asset is subject to equitable distribution will also be dependent upon the intention of the spouse who allegedly comingled the asset.
Contact an experienced family law team attorney at Cohn Lifland to discuss the factual circumstances related to each asset. We can assist you in navigating the complex legal issues in the context of the specific facts of your case.