Slutsky v. Slutsky, a divorce case involving the division of assets (decided in 2026), also involved a 30 year marriage with 3 adult children. The wife received in equitable distribution, fifty percent of the husband’s law practice valued at $501,000 and legal fees from husband totaling $487,000.
The wife also received alimony of $260,000 per year based on the husband’s annual income of $896,000.
Under New Jersey law, a spouse’s law practice, including good will of his practice is subject to equitable distribution in the division of assets. Although the wife received fifty percent of the value of the practice, the wife’s share will be paid from other assets.
Factors Relevant to the Division of Assets
The court has broad discretion in determining the percentage of a business awarded to the non-owning spouse and considers the following 16 factors:
a. The duration of the marriage or civil union;
b. The age and physical and emotional health of the parties;
c. The income or property brought to the marriage or civil union by each party;
d. The standard of living established during the marriage or civil union;
e. Any written agreement made by the parties before or during the marriage or civil union concerning an arrangement of property distribution;
f. The economic circumstances of each party at the time the division of property becomes effective;
g. The income and earning capacity of each party, including educational background, training, employment skills, work experience, length of absence from the job market, custodial responsibilities for children, and the time and expense necessary to acquire sufficient education or training to enable the party to become self-supporting at a standard of living reasonably comparable to that enjoyed during the marriage or civil union;
h. The contribution by each party to the education, training[,] or earning power of the other;
i. The contribution of each party to the acquisition, dissipation, preservation, depreciation[,] or appreciation in the amount or value of the marital property, or the property acquired during the civil union as well as the contribution of a party as a homemaker;
j. The tax consequences of the proposed distribution to each party;
k. The present value of the property;
l. The need of a parent who has physical custody of a child to own or occupy the marital residence or residence shared by the partners in a civil union couple and to use or own the household effects;
m. The debts and liabilities of the parties;
n. The need for creation, now or in the future, of a trust fund to secure reasonably foreseeable medical or educational costs for a spouse, partner in a civil union couple[,] or children;
o. The extent to which a party deferred achieving their career goals; and
p. Any other factors which the court may deem relevant.
In this case the court awarded the wife 50% of the value of the husband’s law practice. Typically, the Court awards a non-owning spouse approximately 25% to 40% of the business.
Under New Jersey law marriage is viewed as a shared enterprise, a joint undertaking that in many ways is akin to a partnership.
Award of Counsel Fees to Dependent Spouse
The court also ordered the husband to pay wife $487,000 toward her counsel fees, representing 35% of her total fees. The court consideres the following in awarding counsel fees:
1. The reasonableness of fees incurred.
2. Time and labor required.
3. Novelty and difficulty of the issues.
4. Customary fees charged in the locality.
5. Results obtained.
6. Experience and reputation of the lawyer.
7. The financial circumstances of the parties.
8. Ability of a party to pay own fees.
9. Reasonableness and good faith positions taken during litigation.
Obviously this was a complex case that was litigated for years. Prior to engaging in bitter and prolonged litigation, the parties should consider alternate dispute resolution such as mediation and arbitration which has the potential to expedite the resolution of a case and minimize counsel fees.
Contact David Wildstein for Guidance in the Division of Assets
If you are facing a divorce and struggling with handling the distribution of assets, do not hesitate to contact a family law professional for guidance.
If you have any further questions or need help navigating a divorce, please contact me. I have helped many clients resolve complex asset issues and be happy to assist you as well.
