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New Jersey is not a community property state. Instead, the state follows a legal system known as equitable distribution when dividing property during a divorce.
That distinction matters, because equitable distribution does not mean a simple fifty-fifty split.
How property is divided in New Jersey
In New Jersey, marital property is divided in a way the court considers fair and just, based on the circumstances of the marriage. This approach gives judges flexibility to account for real-life factors rather than relying on a rigid formula.
Marital property generally includes assets and debts acquired during the marriage, regardless of whose name is on the title. That can include income, real estate, retirement accounts, businesses, and shared debts.
The court evaluates several factors before deciding how to divide property. These include the length of the marriage, each spouse’s financial and non-financial contributions, earning capacity, age, health, and future needs.
Because of this, equitable distribution does not guarantee an equal split. One spouse may receive more than the other if the court determines that outcome is fair under the circumstances.
How this differs from community property states
Community property states operate under a very different model. In those states, most assets acquired during the marriage are considered jointly owned and are typically divided equally during divorce.
States that follow community property rules include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
New Jersey does not follow this approach. Judges here are not required to divide marital assets evenly and instead focus on fairness rather than mathematical equality.
What counts as separate property
Not all property is subject to division in a New Jersey divorce. Separate property is generally excluded from equitable distribution.
This typically includes assets owned before the marriage, inheritances, and gifts received by one spouse, as long as those assets were kept separate and not commingled with marital property.
If separate property becomes mixed with marital assets, such as placing inherited funds into a joint account, it may lose its protected status and become subject to division.
A long-standing legal framework
New Jersey’s equitable distribution system has been in place since the state adopted its Equitable Distribution Law in 1971. While divorce laws continue to evolve in other areas, this core framework has remained unchanged through 2026.
For couples navigating divorce, understanding the difference between community property and equitable distribution can shape expectations and decisions from the start.
What residents should understand
New Jersey does not automatically split marital property in half. Instead, courts aim for a division that reflects fairness based on the marriage as a whole.
For anyone facing a divorce or planning ahead with a prenuptial agreement, understanding how equitable distribution works is essential.