ASSEMBLY JUDICIARY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 82

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 10, 1996

      The Assembly Judiciary Committee reports favorably and with committee amendments Assembly Bill No.82.

      This bill would amend the equitable distribution statute, N.J.S.A. 2A:34-23.1, to add an additional factor for the court to consider in allocating assets pursuant to equitable distribution. The new factor would require the court to consider the extent to which a party deferred achieving career goals. The committee amendments delete the qualifying language, "thereby allowing the other party's earning capacity to be enhanced." The committee considered that there may be circumstances in which the party with the earning capacity does not see an actual enhancement in earning capacity.

      In a common factual scenario, the wife remains home for a number of years to care for the children and, as a consequence, her earning capacity is materially and adversely affected. By contrast, because of the wife's efforts in caring for the children, the husband has the ability to develop his own career and to have his own earning capacity enhanced. Under the bill, this issue would be set forth in the statute as a factor that the court (and the parties themselves, when they settle cases) must consider in evaluating the fairness of an overall distribution of assets.

      This bill embodies Recommendation 20 of the report of the Commission to Study the Law of Divorce, issued April 18, 1995.

      This bill was prefiled for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.