One of the most important (and misunderstood) parts of divorce in New Jersey is equitable distribution. If you're ending your marriage, you may be wondering: Will everything be split 50/50? Will I lose what I worked for?

The good news: equitable doesn't always mean equal.

What Is Equitable Distribution?

New Jersey follows the principle of equitable distribution, which means that marital assets are divided fairly—but not necessarily evenly. The goal is to reach a division that reflects each spouse's financial contributions, needs, and future stability.

What Counts as Marital Property?

Generally, marital property includes:

• Income earned during the marriage

• Real estate acquired together

• Retirement accounts and pensions (earned while married)

• Cars, furnishings, and other valuables

Separate property (usually not divided) includes:

• Assets owned before the marriage

• Inheritances or gifts received individually

• Certain personal injury settlements

However, separate property can become marital if it's mixed or co-mingled with shared assets.

How Do NJ Courts Decide What's Fair?

Judges weigh multiple factors under N.J.S.A. 2A:34-23.1, including:

• Duration of the marriage

• Income and earning capacity of each spouse

• Standard of living during the marriage

• Contributions to the marriage (including homemaking and child care)

• Age and health of both spouses

• Debts and liabilities

• Custody arrangements

Can We Decide on Our Own?

Yes—and that's often ideal. You and your spouse can create your own settlement agreement (with or without mediation), and courts will usually approve it if it's fair.

This can save time, money, and stress.

What About Retirement Accounts and Businesses? 

• Retirement Accounts: These are often divided using a court-approved method called a QDRO (Qualified Domestic Relations Order).

• Businesses: If a business was built or grew during the marriage, it may be subject to valuation and equitable distribution.

Protecting What Matters to You

Equitable doesn't mean you lose everything. A skilled NJ divorce lawyer can:

• Help identify and value assets

• Negotiate a fair division

• Protect inheritances or premarital property

• Uncover hidden assets if necessary

Need Help Understanding What's “Equitable”?

At Villani & DeLuca, P.C., we help clients across New Jersey navigate complex property division with confidence. Whether you're concerned about your home, your business, or your retirement, we'll fight for a settlement that protects your future. Contact us today at (732) 751-4991 for your free first consultation.