The New Jersey Veterans and Military Spouses Asset Protection Act aims to provide enhanced financial protections for veterans, active duty service members, and their spouses. The bill exempts the primary and secondary residences of these individuals from creditor actions such as levy, execution, attachment, or forced sale for debts, judgments, or claims. This exemption applies without a limitation of value, provided that ownership is properly recorded. Additionally, the act protects retirement accounts, pensions, disability benefits, and veterans benefits from creditor claims, as well as motor vehicles owned by veterans and their families, up to a fair market value of $25,000 per vehicle, with a maximum of two vehicles per household.

The bill specifies that the exemptions do not apply in cases involving mortgages, voluntary liens, taxes owed to government entities, or judgments related to willful misconduct or fraud. Any attempts to levy or execute against the protected assets in violation of this act will be deemed void and unenforceable. The act is retroactive to January 1, 2025, and will only apply to debts incurred or claims filed after that date, ensuring that it does not affect the validity of any final judgments entered prior to its effective date. The protections provided by this act are in addition to those available under federal law, including the Servicemembers Civil Relief Act.