Quoted:
My wife and i were talking about home defense recently. There has been several break-ins in our area lately, within half mile, mid day. One when a young girl was home alone. My wife is a stay at home mom, we have a two year old. Its a very rural area.

Lets assume all conditions were met to use deadly force, god forbid. Would it be legal for HER to use MY handgun in that situation?

She doesnt have an FID.      

Thanks  Scott.

Quoted:
Not 100% sure about that. This is what I read.

According to Nappen 3 (page 164) "Under N.J.S. 2C:58-3.1, a legal owner or dealer may temporarily transfer a handgun, rifle or shotgun...at a firing range. The legal owner must actually be present and...on the premises during the entire time that the firearm is in the possession of the person to whom it is temporarily transferred."

He also discusses temporary transfers for hunting or training but, again, the owner must be present or in the vicinity the whole time.

If I'm reading it correctly you can't lend any firearms to someone and let them out of your sight, or let them possess the firearm for more than 8 consecutive hours in a 24 hour period. It also prohibits transfers to someone under 18 even at a target range and while you're present. Fortunately, and typical of our convoluted gun laws, there's an exception to the 18-years-old restriction in 2C:58-6.1 letting minors handle guns under the supervision of a qualifying adult.

2C:58-3b... it's a big statute, so I'll quickly paraphrase:

"No person shall give, transfer, assign, or other dispose of, not receive or otherwise acquire a rifle or shotgun, unless the receiver has an FID card, exhibits it to the seller/giver/donor, and fills out a certificate of eligibility"