A joint transform correlator may suffer from overlapping of the zero diffraction order of the output, which does not contain relevant information, and the correlation peaks that appear in the first diffraction orders if objects are not sufficiently separated. Such overlapping significantly reduces the signal-to-noise ratio of the identification process. We propose a novel approach based on code division multiplexing technique in which the contrast of the identification peaks is significantly enhanced. The approach does not include placing the two objects side by side but rather includes code multiplexing them. Moreover, the code division multiplexing technique allows the space-bandwidth product to be improved. Optical implementation results are given.