The legal process through which divorcing parties’ assets and debts are divided is called “Equitable Distribution.” This division of assets and debts can be achieved in different ways, but essentially will be accomplished by either an agreement between the parties or by an order of the court. Distribution of assets and debts can only be addressed after an exchange of information between the parties confirming the nature and values of assets and debts called “discovery.” Some parties choose to use a mediator or arbitrator to divide their marital assets and debts in order to save on legal fees in a less adversarial environment. However, where mediation or arbitration is not preferred and/or where direct communications between counsel are unproductive, the court offers the process of Equitable Distribution to achieve a final resolution. If requested, a Hearing Officer will be appointed to your case and a series of conferences will be scheduled to address the exchange of information between parties and to see if an agreement can be reached. If no agreement is reached, parties can have their matter scheduled for a trial in which the court will hear evidence and testimony before deciding how assets and debts will be distributed via court order.
The process described above is called “equitable” distribution and does not necessarily mean “equal” distribution. A marital estate is not merely divided equally between the parties, but instead is distributed in a manner that takes into account each of the party’s individual circumstances. There are several factors the court considers in Equitable Distribution including, but not limited to, the parties’ health, ages, incomes, whether one party has custody of minor children, and each party’s respective separate/nonmarital estates. Application of the relevant factors can result in a distribution where one party receives more than 50% of the marital estate and the other party receives less than 50%.
