photo credit: zimmytws What Is a 'Black Hole' Case?
New Jersey statute (N.J.S.A. 3B:8-1) guarantees a married individual a share of their spouse's assets upon that spouse's death (elective share). Separately, N.J.S.A. 2A:34-23 also guarantees divorcing spouses the right to fair distribution of marital assets upon divorce (equitable distribution). Once a married person commences divorce litigation, however, the right of both spouses to an "elective share" of a decedent spouse's assets is terminated by law; yet, if a spouse passes away while divorce litigation is pending, current law also deprives the surviving spouse the right to equitable distribution of marital assets. Thus, a spouse's death during divorce litigation precludes the surviving spouse the benefit of both the "elective share" and "equitable distribution" of marital assets, leaving the surviving spouse in a legal "black hole" as to the decedent spouse's assets.Proposed Legislation Solves for 'Black Hole' Litigation Spawned When a Divorce Litigant Dies
If the Senate ultimately passes the bill, decades of "black hole" litigation will come to a close and the issue will no longer plague divorce litigants and estates of divorce litigants in the event a divorcing party dies.
January 17, 2023 at 10:00 AM
9 minute read
photo credit: zimmytws
What Is a 'Black Hole' Case?
New Jersey statute (N.J.S.A. 3B:8-1) guarantees a married individual a share of their spouse's assets upon that spouse's death (elective share). Separately, N.J.S.A. 2A:34-23 also guarantees divorcing spouses the right to fair distribution of marital assets upon divorce (equitable distribution). Once a married person commences divorce litigation, however, the right of both spouses to an "elective share" of a decedent spouse's assets is terminated by law; yet, if a spouse passes away while divorce litigation is pending, current law also deprives the surviving spouse the right to equitable distribution of marital assets. Thus, a spouse's death during divorce litigation precludes the surviving spouse the benefit of both the "elective share" and "equitable distribution" of marital assets, leaving the surviving spouse in a legal "black hole" as to the decedent spouse's assets.
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