What Happens to Vacation Homes in a New Jersey Divorce?

Whether you and your spouse purchased a vacation home in historic Cape May, New Jersey, or decided to invest in a property in Southern Florida, you may not have pictured a divorce in your future when closing on the home. However, when facing a divorce, understanding how vacation homes are handled is critical. If you’re unsure what will happen to your second property when you and your spouse file for divorce, this blog explores what you should know. In addition, you’ll learn how New Jersey property division attorneys can help you explore your legal options and fight for the best outcome during this difficult legal process.

How Does New Jersey Divide Martial Property?

In New Jersey, marital property is handled in several ways. First and foremost, it’s important to understand what assets are considered marital. Generally, in New Jersey, any asset that is obtained while you and your spouse are legally married will be deemed marital property. This includes income, real estate, and life insurance contributions. Even separate property, which are assets you owned before marriage, can become marital property if they are commingled with joint assets.

The Garden State follows the equitable distribution method for property division. This means that the state will not automatically divide property evenly between both spouses. Instead, the courts will examine each spouse’s domestic and financial contributions to the marriage to determine the best way to split assets among the parties.

How Are Vacation Homes Divided?

There are a number of options you and your spouse can consider to avoid having the courts intervene. One choice would be to convert the property into a rental, manage it together, and split the profits accumulated from the property. This may be an ideal option if you and your spouse would both like to retain ownership and are still on amicable or civil terms. On a similar note, one spouse may choose to buy out their spouse’s portion of the property. For example, if you decide to split your assets in half and the vacation home is worth 1.2 million dollars, one spouse can spend $600,000 to purchase the other spouse’s share of the property to obtain full ownership.  Finally, if one spouse feels very strongly about retaining the property, they may choose to take the vacation home in exchange for assets of equal or greater value.

If you and your spouse cannot agree on how to divide the home, the judge may order you to sell the property and split the shares.

For many, the process of dividing property during a divorce can be incredibly overwhelming. Unfortunately, you may find that your spouse will do everything possible to receive a more favorable outcome than you, which is why ensuring you have someone on your side to fight for you is critical. At Haber Silver Russoniello & Dunn, we understand how difficult these matters can be. That’s why our team will do everything possible to help guide you through these difficult times. When you need help, look no further than our dedicated firm. Contact us today to discuss your concerns with a member of our firm.