Difference between marital assets and liabilities – and non-marital assets and liabilities
Equitable distribution deals with the dividing up of assets and liabilities.
The court must first identify what is a non- marital asset and liability and what is a marital asset and liability. A marital asset or liability is defined as being incurred during the marriage, either individually or jointly. In addition to this, enhancement and value and appreciation of a non-marital asset resulting from the work effort of either party – or both of them – can also be marital in nature.
Likewise, a non-marital asset or liability is one that is incurred prior to the marriage or acquired separately by gift or inheritance. Income derived by the non-marital asset can also be considered non-marital – unless it was used or relied upon by both parties as a marital asset.