How to Divide Assets That Can’t Be Split

When a loved one passes away, settling their estate is often one of the most emotionally and legally complex tasks a family faces. Even when there is a valid will, dividing property among heirs isn’t always straightforward—especially when the estate includes items that cannot easily be divided, such as a family home, sentimental jewelry, artwork, or business interests.

If you’re in Paramus, Bergen County or elsewhere in New Jersey and find yourself responsible as executor, administrator, or heir, this guide will walk you through what to consider when dealing with indivisible assets, and how estate-planning counsel local to New Jersey can help.

Understanding Estate Administration in New Jersey

In New Jersey, the administration of a deceased person’s estate (often through probate when there is a will) involves identifying and valuing assets, paying debts, and distributing what remains to beneficiaries under the will or, if there is no will, under New Jersey’s intestacy statutes.

When an estate consists only of cash, publicly-traded securities or other easily-divisible property, the process is relatively simple. But when the estate includes assets that cannot easily be split—such as a vacation home in Bergen County, a privately held business or family heirlooms—the situation becomes more complicated and may benefit from specialized legal guidance.

The Challenge of Indivisible Assets

Some estate assets simply can’t be divided into equal “pieces.” Examples include:

A single family home or vacation property left to multiple children or other beneficiaries
Valuable jewelry or heirloom pieces that carry sentimental value beyond their monetary worth
A privately held business, partnership interest or investment property
Collections such as art, antiques, classic cars or other items of a “whole” nature

The combination of financial value and emotional or historical significance often leads to disagreements among beneficiaries when no clear plan is in place. Without structure and communication, families risk prolonged disputes.

Legal Options for Dividing Assets That Can’t Be Split

Here are a number of strategies that estate executors and beneficiaries in New Jersey may consider when facing indivisible assets:

1. Division by Value or Sentimental Preference

For smaller—and manageable—items such as artwork, jewelry or collectibles, beneficiaries may agree to divide by fair value or by personal preference.

Obtain a professional appraisal of the items to determine fair market value.
One heir may take a particular piece while others receive property of equal value.
Alternatively, the group may use a rotation, drawing lots, or mutual agreement to allocate items.
Because New Jersey law allows the executor or personal representative to act in the estate’s interest, ensuring fairness and documentation is wise.

2. Sell the Asset and Divide the Proceeds

In many cases the cleanest solution is to sell the property (or assets) and divide the net proceeds among the beneficiaries.

For instance: three siblings inherit a Bergen County home worth $600,000. Selling the home and distributing $200,000 each may avoid disputes, maintenance obligations, or future family tension.
This option is particularly appropriate when co-ownership is impractical or undesired.

3. Buy-Out Among Heirs

If one or more beneficiaries wish to keep the asset (for example the family home), they may buy out the other heirs’ shares at fair market value.

An independent appraisal should be obtained to determine value.
Interested heirs submit written offers, detailing the amount and how they will finance the purchase.
The executor (or legal counsel) oversees fairness, financial capability and any terms specified in the will.
If multiple heirs compete for purchase, a tie-breaking method such as sealed bids or mediation may be used.
This can work well in New Jersey provided the process is handled equitably and with full disclosure.

4. Shared or Co-Ownership Agreements

On the surface, co-ownership may appear to be a fair solution—especially for siblings who want to keep a vacation property in Paramus/Bergen County. However, experience shows that long-term co-ownership often brings major complications:

One heir may shoulder a disproportionate share of taxes, insurance or maintenance costs, leading to resentment.
Disagreements may arise over use, rental, sale or refinancing of the property.
A decision-blocking owner may prevent sale or major decisions, locking assets in limbo.
One heir’s personal legal or financial issues (divorce, bankruptcy, liability) may encumber the property for everyone.
If co-ownership is chosen, it’s essential to craft a formal agreement (preferably with attorney involvement) that spells out:
- how expenses will be paid,
- how scheduling/use will work,
- what happens if an owner wants to exit or sell their share.
  Most New Jersey estate-planning attorneys suggest exploring alternatives (such as buy-out or sale) and treat co-ownership as a last resort.

5. Mediation for Family Disputes

When emotions are strong and assets have both financial and sentimental value, mediation often offers a cost-effective and less adversarial alternative to litigation.

A neutral mediator helps the family communicate, clarify interests and work toward a solution that feels fair.
Mediation can preserve family relationships and avoid drawn-out court battles in New Jersey probate proceedings.

Why Work with a New Jersey Estate/Probate Attorney

Handling an estate with indivisible assets involves far more than paperwork. Local counsel can assist by:

Guiding executors or personal representatives through the Surrogate’s Court (or Chancery Division) process in Bergen County or elsewhere in New Jersey
Arranging for appraisals of real estate, jewelry, business interests or other complex assets
Drafting legal agreements among heirs (e.g., buy-out agreements, co-ownership agreements)
Ensuring full compliance with New Jersey law (including probate, fiduciary duty, taxation, and formalities)
Avoiding misunderstandings and mitigating risk of litigation among heirs

An experienced New Jersey estate-planning and probate attorney can provide tailored solutions adapted to your family’s unique circumstances, while preserving the decedent’s wishes and protecting relationships among heirs.

Final Thoughts

Dividing assets that can’t easily be divided is never simple—but with professional guidance and open communication, it can be managed fairly and efficiently. Whether your loved one’s estate includes a single family home in Paramus, a business, or treasured heirlooms, the goal remains the same: achieve a result that honors the decedent’s wishes, treats heirs fairly and preserves family harmony.

If you are the executor, administrator or an heir and are facing these kinds of challenges in New Jersey, especially in Bergen County, consider reaching out to a local estate-planning attorney for a confidential consultation. With expertise and care your family can navigate the estate process with clarity and confidence.