Financial Issues in a Divorce

The end of a marriage also means the end of a financial partnership. Divorce attorney Erlina Perez will make sure to protect your financial interests and advocate on your behalf for a property settlement agreement that is fair and reasonable.

• Division of assets and debts: Property division laws in New Jersey are based on an equitable distribution model, meaning if you and your spouse cannot agree on how to divide your property then the court will step in and divide equally.
• Spousal support or alimony: New Jersey courts may award a financially dependent spouse a certain type of alimony based on his or her financial needs and earning capacity.
• Children Related Issues in a Divorce: If you have children, they are most certainly your first and foremost priority in a divorce. There’s no doubt you want to shield them from any additional or unnecessary trauma during this transition period. The most critical issues that will need to be addressed in a divorce involving kids is custody, parenting time, and child support.
• Child custody and Visitation: Reaching consensus with your spouse on dividing up time with your kids may not be easy but there are alternative dispute resolution measures such as mediation that can help you and your spouse find common ground. Ms. Perez will do everything possible to ensure that your parental rights remain intact and that you remain fully present in your child(ren)’s life.
• Child support: All parents in New Jersey are obligated to contribute financially in supporting their child(ren). The amount of child support provided is based on a formula known as the New Jersey Child support guidelines. Ms. Perez can help you negotiate a child support amount that is financially reasonable and in your child(ren)’s best interests.

Equitable Distribution

If you are thinking about getting divorced in New Jersey, it is important to understand how your property maybe divided. This can have a significant impact on you as well as your family members after the divorce concludes. New Jersey classifies the assets and the debts that a married couple accumulates together or individually over the course of their marriage to be marital property, no matter how that property is titled.

Equitable distribution rules in New Jersey mandate a fair, which is not necessarily an equal, division of all marital property in a divorce. Judges have a broad range of discretion to determine the factors that plan the equitable distribution in New Jersey, including:

• The length of the marriage
• The standard of living established over the marriage
• The tax consequences of a distribution
• The extent to which one spouse may have held off on career goals during a marriage
• The overall economic circumstances for both spouses
• The property or income brought into the marriage by either spouse
• The health and age of either spouse
• The present value of all property

A judge can determine how much weight to give to any individual factor. Typically, they will put the greatest importance on the marital lifestyle established and the length of the marriage.

Couples are also eligible to negotiate their own equitable distribution arrangement with a help of a mediator or in an independent fashion. Otherwise, the decision about equitable distribution of property ultimately falls to a judge. Marital property includes all debts and assets accumulated over the course of the marriage. However, it does not include property that either spouse received before marriage or as an inheritance or gift from a third party during a marriage. A person who claims that any property they own at the time of their divorce is separate will have to prove it as this can be extremely difficult when elements of marital property are often co-mingled.

Property is valued at its fair current value when it comes to the process of equitable distribution which means what you would be able to get for the assets if you sold it today. There are many different options to consider in the distribution of marital debts and assets.

First of all, there can be tax implications for both parties depending on the type of assets received. Furthermore, certain assets may make it more difficult for you to financially move on with your life after divorce. One party may fight to receive the marital home for example, but it could be difficult to liquidate this asset quickly. Consulting with an experienced Hackensack equitable distribution attorney is strongly recommended if you are facing divorce.

Contested vs. Uncontested Divorce

Depending on the nature of your relationship with your soon to be ex-spouse, your divorce will be either uncontested or contested. If you both agree on how to resolve all the key issues in your divorce, you can proceed with an uncontested divorce. In an uncontested divorce, Ms. Perez can incorporate all of your decisions into a binding marital settlement agreement.

An uncontested divorce in New Jersey takes approximately 3-6 months to become finalized.

Benefits of Uncontested Divorce

• Saves you time and money
• Avoid trial and judge interference
• You maintain control over the process
• Reduced stress for you and children

Contested Divorce

Sometimes no matter how hard you try, compromise cannot be achieved. If your spouse is not willing to meet you halfway, you will be headed for a contested divorce. This means that a judge will be involved in making important decisions about your future and the future of your children. Ms. Perez will not hesitate to vigorously litigate your case in the Bergen County family court system and fight to make sure you and your child(ren) are protected for the future.

Residency Requirement for Bergen County Divorce

Bergen County is one of the busiest counties in the state of New Jersey for divorce. In fact, 7,000 cases are on the divorce docket each year.

In order for a New Jersey court to hear your divorce case, they must have jurisdiction or legal authority to do so. To establish jurisdiction, the following residency requirement must be met:

• You or your spouse must have lived in New Jersey for at least one year prior to filing.
• The only exception to the one-year residency requirement is when the grounds for divorce are for adultery.

Beginning the Divorce Process: Document Checklist

Gathering key documents is a good first step in preparing for divorce. The following is an overview of some of the necessary documents you’ll need:

• Personal: social security cards, your driver’s license, and/or birth certificates for your children.
• Financial: recent pay stubs for you and your spouse, state and federal tax returns, bank account statements, credit card statements, loan documents.
• Title mortgages, valuations/appraisals, utility bills, rental agreements, vacation homes, investment and commercial properties.
• Insurance Policies: life insurance, medical insurance, homeowner’s insurance and car insurance.

Filing Divorce Papers

Divorce involves a ton of complex paperwork. One of the values of having a divorce attorney is that you never have to worry about filling out a form incorrectly or missing a deadline.

Each divorce filing in New Jersey must contain the following essential documents:

• Complaint for Divorce: lists the grounds for divorce usually based on one of four common reasons: Extreme Cruelty, Irreconcilable Differences, Eighteen (18) Month Separation or Adultery.
• Confidential Litigant Information Sheet: lists specific personal information such as date and place of birth, social security number, driver’s license number, auto license plate number, mother’s maiden name, children’s social security numbers, and medical information.
• Certificate of Insurance Coverage: lists medical and health benefit coverage, life insurance, homeowner or renter’s policies, automobile, disability, and any other active insurance policies.
• Certification of Complementary Dispute Resolution (CDR): certifies to the court that you are aware that alternative dispute resolution options exist.

Filing Complaint for Divorce in Bergen County

To formally begin the divorce process, Ms. Perez will file a complaint on your behalf at the Bergen County Court House located in Hackensack, NJ. The filing fee is $300 plus an extra $25 if you have children. Once the complaint is filed, the court assigns you a docket number.

Included within the complaint will be the grounds on which you choose to dissolve your marriage. Since New Jersey is a no-fault state, the most common grounds for divorce is irreconcilable differences. To file based on these grounds, the marriage must have been broken down for a period of six months.

Although rarely used, there are at-fault grounds to choose from as well, including:

• Adultery
• Extreme cruelty
• Desertion
• Substance abuse
• Imprisonment
• Institutionalization
• Deviant sexual conduct

Your complaint must also include specifics on what you are asking for in the divorce regarding alimony, dividing property, the custody of your children, child support, etc. Ms. Perez will make sure your wishes are explicitly articulated and documented.

After the petition is filed with the court, it must be served on your spouse. This is called service of process and means that your spouse must receive and sign a copy of the divorce petition. Your spouse has 35 days to file an answer with court, which can include his or her own counterclaim that states why they want a divorce from you and what issues they want the court to resolve in their favor in the divorce case.

If your spouse does not respond to the initial complaint, you can enter a default with the court and proceed without your spouse to get a Judgment of Divorce. If he/she does respond, you can file an answer to the counterclaim. If you have children, the court will send you information about a parenting program workshop.

Case Management Conference:

Within 20 days of an answer being filed, the court will schedule a Case Management Conference (CMC). This conference is meant to provide the court with a list of all the things that need to be accomplished going forward in your divorce proceeding.

Court sets a track for your case:

• Expedited: uncontested cases
• Priority: cases involving contested custody or parenting-time issues
• Complex: cases likely to require a great amount of court resources in preparation for trial
• Standard: cases that are not expedited, priority or complex

If you have children and you and your spouse have not reached a custody agreement or schedule of parenting time or visitation, the court will order you to meet with a mediator to resolve these issues.

The court will set deadline for discovery, which is when you and your spouse will disclose and exchange key financial documents.

The court will ask if you and your spouse plan on retaining experts for settlement or trial purposes (accountants, property appraisers, mental health specialist to conduct psychological or custody evaluations, etc).

Requesting Temporary Orders

If there are certain issues you need resolved before your divorce is finalized, Ms. Perez can file a temporary order or pendente lite (“awaiting the litigation”) motion for relief with the court. These orders can maintain the status quo or create some stability while your case is pending.

Temporary orders are often granted for:

• Child support.
• Spousal support.
• Temporary child custody.
• Setting a parenting time schedule.
• Awarding temporary sole possession of the marital residence.
• Ordering the payment of certain bills such as mortgage, utilities, car insurance, marital liabilities, college and private school tuition.
• Ordering the payment of health insurance.
• Awarding sole possession of certain vehicles.
• Restraining or protective order.

Temporary orders end when the final divorce is granted. However, if the current arrangements have worked well, you can incorporate them in the Final Judgment of Divorce or in the Marital Settlement Agreement and they will become permanent.

Discovery:

Discovery is the information gathering phase of a divorce in which you and your spouse will exchange key financial documents. This exchange of information helps to identify income, assets and debts so there are no surprises going forward.

• Discovery can also include:
• interrogatories — questions you submit to your spouse
• notice to produce/requests for documents
• depositions — sworn testimony of parties and witnesses
• appraisals of property
• custody evaluations
• retention of experts

Case Information Statement

The court requires divorcing couples to file a case information statement (CIS), which is a 10 page comprehensive document that sets forth the financial details in a divorce case. The CIS is arguably the most important document in a divorce and must be filled out as complete and accurate as possible. The information provided is used to craft a property settlement agreement as well as alimony and child support.

Listed in the document is information such as:

• income of both you and your spouse
• medical insurance coverage, life insurance coverage
• a budget of your living expenses
• itemization of the amounts which you are paying in support of your spouse or children (if you are contributing to their support)
• a summary of your assets and an itemization of your debts

Early Settlement Panel:

At the conclusion of discovery, which is usually 5-6 months after you’ve filed the complaint, the court will schedule you for an early settlement panel at the courthouse. This is meant to assist you in the settlement process. Prior to the panel, you and your spouse will submit proposals to one another and to a panel of volunteer family lawyers specifying how you would like to resolve key issues.

On the day of the settlement panel, the panelists will offer their recommendation on how they believe you should settle your divorce. Their feedback also helps to give you an idea of how a judge would rule if you were to go to trial. You are under no obligation to take their advice or implement their suggestions. If, however you and your spouse find the panel helpful and can work out , you can get a divorce that very same day.

Failure to reach a settlement at the ESP panel means you will have to attend court ordered economic mediation.

Economic Mediation:

Economic mediation offers yet another opportunity to resolve your case without going to trial. You and your spouse will once again submit proposals, this time to a neutral mediator in the hopes of reaching compromise on the contested issues. If you are unable to find common ground, you will have one more opportunity to settle your case at an All-Day Intensive Settlement Conference at the Courthouse. If this too fails, the court will schedule a date to begin trial.

The good news is most cases do end up settling before trial.

At trial, a family court judge will review evidence, hear testimony from you, your spouse other witnesses and make decisions on all key issues.

What are the Different Types of Custody in New Jersey?

If you and your spouse can negotiate a child custody arrangement in good faith, then the court will not interfere. However, if you are unable to reach agreement, the court will step in and establish orders.

Bergen County Family Court makes child custody determinations based on what is in the best interests of the child(ren). The court’s general view is that child(ren) in a divorce should maintain frequent and meaningful contact with both parents and that each parent should share in the rights and responsibilities of raising the child(ren).

In New Jersey, custody is broken into two parts: legal and physical custody

Legal custody refers to who will make important decisions regarding the child(ren)’s education, healthcare, religion, and general welfare. Unless one parent is unhealthy or mentally unstable, the court will usually grant joint legal custody.

In regards to physical custody, this dictates where your child(ren) will live. Physical custody arrangements vary greatly. If your child ends up spending the majority of time with you during a given week, you will be designated the parent of primary residence and your spouse will be the parent of alternate residence and receive visitation or parenting time. This type of arrangement is generally referred to as joint physical custody. You and your spouse will need to work together to develop the following schedules:

• Residential schedule
• Holiday schedule
• Vacation Schedule
• Sole physical and legal custody can be awarded to one parent if the other parent is deemed unfit or is considered a danger to the child(ren).

Factors Court Considers When Deciding Custody:

• Determining appropriate custody requires a consideration of several factors including but not limited to:
• willingness of you and your spouse to communicate and cooperate with one another on matters related to your child(ren)
• bonds and relationships between child(ren) and parents and/or siblings
• whether or not there is a history of domestic violence
• employment schedules
• safety, security, and stability of home environment
• distance between your residence and your spouse’s residence

Bergen County Child Support Lawyer

Of all of the complicated issues that must be resolved in your New Jersey divorce, there is no doubt that no matter which parent you are, you are concerned about the impact of child support. A parent who may be financially responsible for paying child support is interested in the factors used to determine the amount of child support and how to get set up to pay it.

A parent who may be the recipient of child support will likely have questions about the establishment of child support, modification of child support and enforcement of child support orders. In New Jersey, child custody and child support laws require that every parent be responsible for financially supporting the child. When separating or divorcing, it is critical that a child support settlement is reached that helps to protect the children’s needs and interests.

New Jersey Child Support Court Rules

New Jersey court rules require guidelines to be considered when it comes to child support obligations and awards. There are many different considerations and variables involved in the court rules in the case law in the state of New Jersey. Working with a Hackensack child support attorney helps you understand how your child support settlement will ultimately be reached. Child support calculations are established in accordance with guidelines outlined by the New Jersey legislature. To start with a child support case in New Jersey, the expenses and income of each parent have to evaluated. After the point at which the time that the child will spend with each parent is planned and determined, child support is often linked directly to child custody agreement.

Spending Time With Your Children

When parents are scheduled to spend more time with children than the other parent, they could be awarded a larger child support payment. Each parent’s financial situation as well as the unique needs of the child are taken into consideration when determining a child support amount. Whether you are interested in how child support will affect your child custody agreement or your overall divorce, or you are interested in modifying an existing child support order, a Hackensack child support attorney can assist you with this process.

Parenting Time

There are many different complicated issues involved in the dissolution of a marriage in New Jersey. However, parenting time is often one of the most contentious and important for all parties involved. The parenting time stipulates how much time you’ll be able to spend with your children. Both parents will want to schedule a consultation with their own Hackensack family lawyer as soon as possible after making the decision to divorce.

Identifying a Hackensack parenting time attorney as soon as possible can help you navigate this complex process. Both parents are always eligible to resolve their own parenting time agreements through mediation. If parenting time or custody are disputed, however, then the discretion to determine parenting time is transitioned to the judge presiding over the case.

The legal standard to evaluate custody determinations in New Jersey is the best interests of the child. The court can evaluate many different factors in determining what is the best interest of the child for parenting time.

This includes the parent’s relationship with one another and their ability to cooperate, the child’s relationship with his or her siblings and the parents, any instances of domestic violence, the ability of each parent to provide for the child, how much time each parent has already spent with the children and the child’s preferences and needs.

There are two critical aspects to custody in New Jersey. The first is legal custody, which refers to a parents’ right to make decisions concerning the child like education, medical treatment, and religious issues. In many cases, parents will maintain joint legal custody and share and split the decision-making responsibilities. Physical custody refers to where the child actually lives. If parents share joint physical custody, they will spend time with each parent for a certain period of time over the year. The individual who spends the most time with the children is the parent is the primary resident. Child custody arrangements will vary significantly based on the particular experiences of each parent and the needs of the children. Identifying a Hackensack parenting time attorney at the outset of your case can help you clarify these critical issues.