Generally, yes, if you file a joint state return, you have to declare all her world-wide income (in fact, it flows from the federal return).
Most of the time, you are required to file your state return using the same status as your federal return. In some states it is permitted to file a joint federal return but MFS in the state, when the two spouses have different domiciles. However, it seems that New Jersey only allows that when the spouses have different domiciles for the entire year.
https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git4.pdf
