Understanding NJ Separation Laws for Car Enthusiasts

You’re driving down the New Jersey Turnpike, listening to your favorite tunes, with your prized vehicle carving through the curving lanes like a bolt of elegant black and chrome lightning. You can’t help but smile, as you know that most people share your passion for the art of collecting rare and collectible cars. If you’re a car enthusiast who frequents Specialized Vehicle Solutions, you know that keeping ahead of the curve – or maintaining that aerodynamic cut – can be more than a hobby: It can be an essential tool for winning at life, relationships and beyond.

But what happens when you’re suddenly confronted with comprehensive NJ separation laws?

First, let’s define NJ separation laws. NJ separation laws (also known as legal separation) exist within the framework of NJ divorce laws, which are much more widely publicized. New Jersey separation laws are often invoked as a way for parties to live a legally separated and independent existence, without the pursuit of a divorce. Like divorce, however, separation is still a formally regulated legal process that usually requires the review of an experienced family law attorney and may require the signing of comprehensive agreements.

Legal separations do not need to result in divorces, but they often do. Legal separation is also frequently pursued by parties who want to preserve certain rights – such as alimony, jurisdictional privileges, etc. – or who have a strong moral or cultural aversion to obtaining a divorce. Done properly, separation agreements are designed to protect the rights and interests of the parties, similar to divorce.

Separation agreements are particularly important to anyone, including car enthusiasts, who wishes to preserve valuable assets like collectible cars that often appreciate over time. With proper valuation, transfer and documentation, rare cars can provide financially privileged parties with an important financial reserve.

The thing to keep in mind with regard to rare and collectible cars is that they’re often not worth much from a divorce settlement perspective. Divorce settlement judges tend to be more interested in alimony, child support and the liquid assets that can be divided. Rare and collectible cars might be excluded from home settlements and other property distributions simply because they’re perceived to be ephemeral and hard to value. Cars may be further disadvantaged because divorce judges often decide to use an “equal distribution” approach in divorce settlements, which often completely discounts rarer and collectible vehicles.

Within the context of separation, however, rare cars can serve a much greater function. Separation agreements can be used to determine how assets will be treated in the future based on their valued worth at the time of settlement. During a separation, the parties need not consider what rare assets are currently worth but, rather, how much they anticipate them being worth once they are sold in the future. This can be a great approach for car enthusiasts to protect their rare cars, since they actively work to maximize their value both through investment and proper upkeep.

If you’re a car enthusiast in the midst of a separation, you should willfully explore ways in which you can maximize the value of your collection during your separation. Depending on your NJ separation laws, you might be able to capitulate to a less extensive separation in lieu of an impending divorce if you’re willing to relinquish the rare cars in your collection.