DIVORCE PROCEEDINGS
No divorce proceeding, whether in New Jersey or Pennsylvania, is the same. Each case involves unique issues concerning marital property, assets, disputes, and debts. At The Davis Law Firm, LLC, we routinely handle varying types of divorces, ranging anywhere from uncomplicated and uncontested to highly complex. We provide our clients with aggressive, vigorous, and creative representation from start to finish.
In New Jersey, the typical divorce may involve the following:
- Alimony;
- Child Custody/Visitation;
- Child Support;
- Investigation & Evaluation of Assets;
- Debt Management
- Pension Evaluation;
- Business Evaluation; and
- Equitable Distribution.
Understandably, many of our clients come to us having no idea of the true value of their marital assets or debts. Accordingly, it is our practice, when necessary, to conduct a thorough investigation and evaluation of marital assets/debts, and then negotiate an equitable distribution.
The most common concern that each client has in a divorce proceeding, though, is trying to figure out which marital assets he or she is entitled to. All assets acquired between the date of marriage and the date the Divorce Complaint is filed are considered marital property and, therefore, subject to equitable distribution. Property that may not be subject to distribution typically includes:
- Gifts or inheritances given only to one spouse;
- Personal injury awards given only to one spouse;
- Proceeds of a pension that vested before the marriage;
- Properties purchased with the separate funds of a spouse; and
- A business owned by one spouse before the marriage (although a portion of that business may be subject to distribution to the extent that the business increased in value during the marriage).
The only way to avoid equitable distribution of assets acquired during the marriage is through the use of a qualifying prenuptial agreement.
Certain kinds of marital property continue to create controversy during divorce proceedings. Accordingly, divorcing couples should be aware of the following assets and the issues their division usually create:
- Marital Home. The primary residential property owned by the divorcing couple is often their largest asset. Dividing such an asset can be quite complicated and cause bitter feelings in both parties, particularly when children are involved. It is important to know that the courts tend to allow the custodial parent to retain the home. This may create complicated arrangements to ensure that the departing spouse receives adequate compensation for the home’s value, as well as provisions for the continuing mortgage payments, tax liabilities, and maintenance of the home.
- Pensions. Pensions usually follow the marital home as the second largest marital asset to be divided. When there are other income sources sufficient to compensate the non-pension holder, courts tend to leave vested pension rights in the spouse who earned them. Otherwise, under federal law, the divorce court may enter a Qualified Domestic Relations Order (QDRO), requiring the administrator of the pension to make payment to both the earner and his or her former spouse.
- Family-Owned Businesses. When married couples are joint owners of a business, equitable distribution of the business presents complex valuation and allocation problems. First, either the couple or the court must determine who should receive the business. Then, the business will need a valuation, which requires a costly undertaking by outside experts (i.e. forensic accountants). If there are insufficient marital assets to adequately compensate the non-retaining spouse, there may be the necessity of a forced sale or long-term buy-out.
If you or someone you care for is either contemplating or forced into a divorce proceeding, please contact The Davis Law Firm, LLC immediately for an initial consultation and to discuss your best course of action. Upon being retained, we will advance your case aggressively and efficiently.
