If you are about to sell marital assets, the family home, or separate property before a divorce settlement in New Jersey, it is essential to understand your rights, obligations, and the legal implications involved.
The New Jersey divorce lawyers at Graziano & Flynn, P.C., are here to provide the guidance and knowledge you need to make informed decisions and protect your interests during this challenging time.
Can You Sell Your Assets Before A Divorce?
The sale of assets before a divorce in New Jersey requires careful consideration, as the status quo must be maintained during the marriage. While it’s not inherently forbidden to sell assets before divorce proceedings, it’s essential to proceed with caution and understand what may influence asset distribution during the divorce process.
Marital assets are typically subject to equitable distribution during divorce proceedings. Attempting to sell such assets unilaterally can lead to complications, including legal disputes and penalties for violating the status quo. Therefore, it’s advisable to seek legal counsel before initiating any sales to ensure compliance with New Jersey laws and protect your interests.
Differences Between Marital Property and Exempt Property in NJ
Due to popular culture, people mistakenly believe all property is up for grabs during a divorce. The reality is very different. Under New Jersey law (NJ Rev Stat § 2A:34-23.1), only marital property is equitably divided.
Marital Property
Legally (NJ Rev Stat § 2A:34-23), marital property in New Jersey typically includes assets acquired during the marriage, such as real estate, vehicles, bank accounts, and investments. During divorce proceedings, marital property is subject to equitable distribution, meaning it is divided fairly but not necessarily equally between spouses. Our law firm can assist you in identifying and valuing marital assets to ensure a fair distribution during the divorce settlement process.
Exempt Property
Exempt property, also known as non-marital property or separate property, includes assets that are not subject to being equitably divided during a New Jersey divorce. This may include property owned prior to marriage, inheritances, and gifts. Understanding the distinction between marital and non-marital property is essential for protecting your assets and rights during divorce proceedings.
Legal Considerations of Selling Assets Before Divorce
Prior to selling any assets before a divorce in New Jersey, it’s crucial to understand the legal implications involved. Attempting to hide assets or manipulate the distribution of property can have serious consequences. An experienced New Jersey divorce attorney can advise you on the legal considerations of selling assets before divorce, helping you avoid potential pitfalls.
Potential Consequences of Attempting to Hide Assets
Attempting to hide assets during divorce proceedings can result in severe consequences. These penalties can include:
- Forfeiture of the assets
- Loss of other assets during the equitable distribution process
- Grounds for reopening a previously finalized divorce judgment
- Fines
- Being held in contempt
- Criminal charges for perjury
- Loss of credibility with the court
Our legal team can help you with the disclosure process to ensure full transparency while also protecting your rights and minimizing the risk of negative outcomes.
Financial Implications of Selling Your Home Before Divorce
Selling your family home before a divorce can have significant financial implications that must be carefully considered. Depending on certain economic factors, such as whether it’s a buyer’s market or a seller’s market, tax implications, and current property values, the timing of selling your home can greatly impact the outcome of your divorce settlement.
For instance, if property values are on the rise, selling the home at a later date may result in a higher sale price, potentially leading to a larger share of proceeds being divided between spouses. Conversely, if the market is experiencing a downturn, selling the home sooner rather than later may be advisable to mitigate potential financial losses.
From understanding how property sales affect the distribution of assets to navigating tax implications, our New Jersey family law attorneys can provide the guidance you need to make informed decisions and protect your financial interests during this critical time.
How Property Sales Affect Distribution of Property
The sale of marital property, such as a home, can impact asset distribution during divorce proceedings. For example, if your spouse contributed an inheritance towards the home’s down payment, they may be entitled to a greater share of the proceeds from the sale to compensate for their non-marital property contribution.
Conversely, if both spouses equally contributed to the home’s purchase and maintenance during the marriage, the proceeds from the sale may be divided more evenly between them. Understanding the nuances of property ownership and contributions is essential for ensuring a fair distribution of assets during divorce proceedings.
How To Prevent The Sale of Marital Property
Some people try to sell marital property prior to divorce. In such cases, it’s crucial to act swiftly and decisively to protect your interests. Preventing the sale of marital property before a divorce settlement in New Jersey is necessary for ensuring a fair distribution of assets. Our experienced attorneys can help you explore various legal strategies to protect your interests and prevent unauthorized asset sales.
Whether through obtaining temporary restraining orders, filing legal notices, or initiating other legal measures, we are dedicated to safeguarding your assets and advocating for your rights throughout the divorce process.
Drafting and Enforcing Prenuptial and Postnuptial Agreements
Prenuptial and postnuptial agreements are valuable legal tools for safeguarding assets and outlining property rights in the event of divorce. Both New Jersey statutory law (NJ Rev Stat § 37:2-38) and the New Jersey Courts impose many requirements in order to make prenuptial and postnuptial agreements enforceable. Our legal team can assist you in drafting and enforcing these agreements to prevent the unauthorized sale of marital property and ensure that your interests are protected.
Temporary Restraining Orders (TROs) and Injunctions
Temporary restraining orders (TROs) and injunctions can be obtained to prevent the sale or transfer of assets during divorce proceedings. Specifically, you can file a petition for emergency relief under Rule 4:52-1(a). The standards for obtaining a TRO or injunction are high, which is why it is essential to have an experienced New Jersey divorce lawyer on your side.
Legal Notices and Warnings
Providing proper legal notice can effectively prevent the sale of marital property. Under New Jersey Law (NJ Rev Stat § 2A:15-6), you can file a notice of “lis pendens” through a New Jersey family court. This places potential buyers on notice of your potential legal claim against the property.
Asset Tracking and Forensic Accounting
Asset tracking and forensic accounting can uncover any unauthorized or hidden asset sales. The divorce lawyers at Graziano & Flynn, P.C., have decades of experience with litigating high asset divorces. Our divorce attorneys know how to use financial experts such as investigators and forensic accountants to conduct a thorough analysis of your spouse’s financial records to identify and document any improper transactions.
Legal Actions You Can Take for Unapproved Asset Sales
If your spouse has engaged in unapproved asset sales during divorce proceedings, you have several legal options. Our legal team can guide you through the process of taking legal action for unapproved asset sales. We will fight for your rights and hold your spouse accountable for their underhanded behavior.
Seeking a Court Order to Reverse the Transaction
One option is to seek a court order to reverse the unauthorized transaction. Depending on the facts surrounding the sale and the implications to an innocent third party buyer, another option would be to seize and equitably divide the proceeds of the sale. Our experienced attorneys can assist you in petitioning the court for the return of the property or obtaining your share of the proceeds from your former spouse.
Filing for Damages or Compensation for Lost Value of the Property
In some divorce cases, it is not unusual for divorcing spouses to sell marital property at a severely discounted price. You may be able to seek compensation for lost value based on the property’s true market price. Our legal team can help you assess the financial impact of the sale and pursue appropriate legal remedies to recover your losses.
Asking the Court to Consider the Unauthorized Sale During the Division of Assets
During divorce proceedings, you can ask the court to consider the unauthorized sale of marital property during the equitable division process. In short, you are asking for a greater share of the marital property based on your spouse’s conduct. Our New Jersey divorce lawyers can advocate on your behalf, ensuring that the court takes into account any improper actions by your spouse and allocates assets accordingly.
Filing Injunctions or Other Legal Measures
Filing injunctions or other legal measures during divorce filing can help prevent further unauthorized asset sales and protect your interests during divorce proceedings. According to the Supreme Court of New Jersey, obtaining an injunction requires you to prove several elements, including irreparable harm and a high likelihood of success. Our legal team can assist you in obtaining the necessary court orders to halt any improper actions by your spouse and ensure that your rights are fully protected.
Role of Divorce Attorneys in Protecting Assets
Divorce attorneys play a crucial role in protecting your assets during divorce proceedings in New Jersey. The legal team at Graziano & Flynn, P.C. is dedicated to safeguarding your interests and ensuring that your property is fairly distributed. With our knowledge of state laws and extensive experience in family law, we work tirelessly to secure the best possible outcome for our clients.
How Divorce Attorneys Safeguard Interests
Our divorce attorneys employ various legal strategies to safeguard your interests and protect your assets. From conducting thorough investigations to negotiating fair settlements, we are committed to achieving favorable outcomes for our clients. With our personalized approach and attention to detail, you can trust us to advocate vigorously on your behalf.
Importance of Early Legal Consultation
Early legal consultation is essential for protecting both your marital and non-marital assets during divorce proceedings. By seeking guidance from our experienced attorneys at Graziano & Flynn, P.C., as soon as possible, you can begin the process of classifying property and developing a strategic plan for your case. Don’t wait until issues arise – schedule your consultation today to ensure that you are prepared for the challenges ahead.
When To Hire A Divorce Attorney In New Jersey
Knowing when to hire a divorce attorney in New Jersey is crucial for protecting your interests and navigating the legal process effectively. You could immediately hire a New Jersey divorce lawyer if you were recently served with a complaint for divorce or suspect your spouse intends to file for divorce. Similarly, you could retain a New Jersey divorce attorney if you suspect your spouse is hiding or selling marital property.
Schedule A Free Consultation With Graziano & Flynn, P.C. For Seasoned Divorce Attorneys
Ready to protect your assets and secure your future during divorce proceedings in New Jersey? Our seasoned divorce attorneys are here to provide the personalized guidance and advocacy you need to achieve a favorable outcome.
Contact us now to take the first step towards safeguarding your interests.
