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It can be filed where either party resides. That said, lawyers generally recommend filing where the other side is located to ensure service of process, jurisdiction and court orders are more easily enforced.
You can file in either state, although NJ is better and can have a local lawyer handle most of it on papers without your personal appearance except for limited reasons such as a trial, if it comes to that or a court required hearing, and phone appearances are common!
Legally, No, but it is harder, and a party could file a motion for a transfer which could be granted.
You will save time and money proceeding in NJ
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a local and experienced lawyer will navigate it for you and will help resolve it quickly and cheaply.
consider avvo.com and findlaw.com in finding local counsel to handle.
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