Category Archives:Debt

Equitable Distribution in New Jersey

New Jersey is an Equitable Distribution State. This means that marital assets will be divided in a manner that is considered fair but not necessarily equal for the parties. Below we have developed an outline to give a general overview on Equitable Distribution in New Jersey.

Equitable Distribution in New Jersey an Outline Overview.

  1. Assets subject to Equitable Distribution
    1. Assets that  are Acquired During the Marriage
    2. Assets acquired in contemplation of marriage
  2. Assets Immune by Statute
    1. Premarital – except an increase in active assets value due to efforts of non-owner.
    2. Inheritances
    3. Gifts from third parties
    4. Specific Assets: Subject to Equitable Distribution
      1. Pensions and other retirement accounts that were acquired during the marriage.
      2. Real Estate as per I(a), (b).
      3. Automobiles, jewelry, inter-spousal gifts, house contents
      4. Stocks, bonds, etc.
      5. Insurance annuities and cash surrender value of life insurance policy
      6. Business and partnership interests
      7. Personal injury awards (medical expenses and lost wages only)
      8. Debts, obligations, tax liabilities
  3. Assets not subject to Equitable Distribution 
    1. Educational and professional degrees
    2. Assets immune by statute
  4. N.J.S.A. 2A:34-23.1: Determination of Equitable Distribution
    1. Marriage length.
    2. Age, the physical and emotional health of the parties.
    3. Income or property brought to the marriage by each party.
    4. Standard of living during the marriage.
    5. Existence of written agreements made by the parties
    6. Income and earning capacity of each party
    7. The contribution by each party to the education, training or earning power of the other.
    8. The contribution of each party to the acquisition, dissipation, preservation, depreciation or appreciation in the amount or value of the marital property
    9. The contribution of the party as a homemaker.
    10. Tax consequences of the proposed distribution to each party.
    11. The present value of the property.
    12. The need of a parent who has physical custody of a child to own or occupy the marital home.
    13. The debts and liabilities of the parties.
    14. The need for creation now, or in the future, of a trust fund to secure reasonably foreseeable medical or educational costs for a spouse or child.
    15. Other factors which the court may deem relevant.

For more information about equitable distribution matters in New Jersey please contact our office at (201) 880-5563, for an appointment with one of our attorneys.

Disclaimer: The contents of this website are of general nature and not intended to be a substitute for legal advice or the formation of a lawyer-client relationship. In order to be properly represented, please contact your local professional. In addition, the information given on this web site has been composed by a New Jersey attorney practicing exclusively in New Jersey. None of the information contained herein should be deemed to apply in other states, nor should this website be construed as an attempt by the author to practice law in any state other than New Jersey.

Invalidating a Contract under the Doctrine of Economic Duress

The doctrine of economic duress has significantly developed and expanded, in recognition of the ever-increasing complexity of the business world. Claims of economic duress in business litigation are becoming more frequent. Several courts, including the United States Supreme Court, have acknowledged that there are situations under which financial pressure may cancel an otherwise enforceable contract. See 13 S. Williston, Contracts, § 1603 at 664 (3d ed. 1970); United States v. Bethlehem Steel Corp., 315 U.S. 289, 62 S.Ct. 581, 86 L.Ed. 855 (1942); Hartsville Oil Mill v. United States, 271 U.S. 43, 46 S.Ct. 389, 70 L.Ed. 822 (1926).The definition of economic duress is set forth in Williston:1. The party alleging economic duress must show that he has been the victim of a wrongful or unlawful act or threat, and2. Such act or threat must be one which deprives the victim of his unfettered will. [13 Williston, supra, § 1617 at 704 (footnotes omitted)]

The courts in New Jersey have defined economic duress as in the Williston formulation. In Woodside Homes, Inc. v. Morristown, 26 N.J. 529, 544 (1958), define that economic duress requires “an assent by one party to an improper or wrongful demand by another under circumstances in which the former has little choice but to accede to the demand. Economic duress occurs when the party alleging it is the victim of a wrongful or unlawful act or threat which deprives the victim of his unfettered will. Quigley v. KPMG Peat Marwick, LLP, 330 N.J.Super. 252, 263 (App. Div. 2000) (citing 13 Williston on Contracts § 1617), certify. denied, 165 N.J. 527 (2000).

It is important to distinguish that “Merely taking advantage of another’s financial difficulty is not duress. Rather, the person alleging financial difficulty must allege that it was contributed to or caused by the one accused of coercion.” Continental Bank v. Barclay Riding Academy, Inc., 93 N.J. 153, 176, 459 A.2d 1163, cert. denied, 464 U.S. 994, 104 S.Ct. 488, 78 L.Ed.2d 684 (1983). Therefore, when there is adequacy of consideration, there is generally no duress…. Whenever a party to a contract seeks the best possible terms, there can be no rescission merely upon the grounds of driving a hard bargain. Merely taking advantage of another’s financial difficulty is not duress. Rather, the person alleging financial difficulty must allege that it was contributed to or caused by the one accused of coercion…. Under this rule, the party exerting pressure is scored only for that for which he alone is responsible. [Williston, supra, § 1617 at 708 (footnotes omitted)]

Disclaimer: The contents of this website are of general nature and not intended to be a substitute for legal advice or the formation of a lawyer-client relationship. In order to be properly represented, please contact your local professional. In addition, the information given on this website has been composed by a New Jersey attorney practicing exclusively in New Jersey. None of the information contained herein should be deemed to apply in other states, nor should this website be construed as an attempt by the author to practice law in any state other than New Jersey.

Home Purchase Process

Home Purchase Process

The Home Purchase Process in New Jersey: Think of Investing in a Home? With historically low rates and rents constantly increasing it is a good idea if you are financially able.   Times have changed however, now you need to be prepared for the paperwork that is required.  From making sure that your credit score is high enough to get a good rate to lowering your debt.  Among the list of documentation that you should be prepared to provided are

1)      W2, 1040 Last two years

2)      6-8 weeks paystubs

3)      Profit and Loss Documentation if your are Self Employed

4)      Investments

5)      Retirement Plans

6)      Other Assets such Stocks, Bonds or other Real Estate

7)      Child Support and Spousal Support (If Applicable)

8)      Other types of Support

9)      Bank Statements

As frustrating as the requirements to approve for a loan, buying a home can be a rewarding and sound investment.  It is important to make sure that you are conscious of what you can afford. You have to think of maintenance, taxes and updates. Most people do not buy a new home so the likelihood is that you will invest some money in remodeling.  

For more information about the home buying process or to inquire about our attorney closing services please contact us at (201) 880-5563.