Who Gets the House in a New Jersey Divorce?

The family home often represents a couple’s largest asset, and emotions often run highest over what happens to it in a divorce. In New Jersey, courts apply equitable distribution principles to determine how the marital house should be handled. Whether you can keep the home or must sell it depends on the facts of your case and your ability to reach an agreement. Learn more below, and contact the Law Offices of John B. D’Alessandro to speak with an experienced Union equitable distribution lawyer concerning the division of marital property in your divorce in Union, Essex, or Middlesex County.

Is the House Marital Property or Separate?

First, the court must determine whether the home is marital property, generally meaning it was acquired during the marriage with marital funds, or separate property, meaning it belonged to one spouse before marriage or was inherited or gifted to one spouse during the marriage. Even if titled in only one spouse’s name, a home purchased during marriage is generally considered part of the marital estate.

However, if one spouse owned the home before marriage and it wasn’t commingled or improved with marital funds, it may retain separate status. Courts closely examine how the property was treated over time—including mortgage payments, renovations, and shared use—to determine its character. Answering this question is a critical first step, since New Jersey courts only divide marital property in a divorce; each party keeps their separate property.

What Options Exist for Dealing with the House?

Once classified as marital property, several methods exist regarding the home’s place in the equitable distribution of marital property:

• Sell the house and split the proceeds. This is often the simplest solution when neither spouse can afford to keep the home alone.
• One spouse buys out the other’s interest. The retaining spouse buys the other out by refinancing or compensating with other assets or cash.
• Delay sale or continue co-ownership temporarily. Particularly where minor children are involved, parents may agree to defer sale until children reach milestones (e.g., finishing school), or one parent may remain in the home while both maintain joint ownership for a time.

How Do Courts Decide Who Stays?

If spouses cannot agree, courts consider factors such as: child custody arrangements, ability of each party to care for the children, financial capacity to maintain the home, length of marriage, contributions each made to the property, and the goal of preserving stability for children by allowing the custodial parent to remain in the home.

Courts presume both spouses contributed to marital property but recognize that a custodial parent may need housing stability for the children, which can weigh in favor of awarding the home to them.

Real-World Challenges: Mortgage and Title Issues

Even when one spouse is awarded the house, unresolved legal strings can remain. For instance, if both parties’ names remain on the mortgage or deed post-divorce, the original spouse may still be exposed to financial risk, even if they no longer occupy or receive a benefit from the property.

Negotiation and Co-Ownership Strategies

If the spouse who wants the home lacks funds to refinance, creative arrangements are available. These can include installment buy-outs, delayed sales, or hybrid co-ownership plans that delay final division until a future date, often timed to children’s graduation or market improvements.

Why Legal Representation Matters

At its core, dividing the family home involves significant legal issues (title, mortgage refinancing), financial decisions (asset balancing, tax consequences), and emotional concerns (stability for children). Working with an experienced divorce attorney ensures that the home’s character (marital vs separate) is correctly classified, assets and liabilities are fairly balanced, refinancing or quitclaim issues are handled properly, and a custodial parent’s need for stability is considered under equitable distribution factors.

Key Takeaways

• In New Jersey, the house purchased during marriage is usually marital property and subject to equitable distribution.
• Options include selling and dividing the proceeds, one spouse buying out the other, or continuing co-ownership temporarily.
• Courts weigh custody, financial ability, and contributions when awarding the home to one party.
• Refinancing and title cleanup are critical to avoid future liabilities.
• Skilled legal guidance helps protect rights and financial security.

Contact the Law Offices of John B. D’Alessandro in Union for Help With Equitable Distribution Issues in Your New Jersey Divorce

If you are facing a divorce and wondering how your home and other assets might be handled, contact the Law Offices of John B. D’Alessandro in Union. We represent clients throughout Union, Essex, and Middlesex counties, helping families navigate property division with clarity and confidence.