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Last Updated: November 25, 2024
Are you concerned about what will happen to your assets in your New York divorce? Your property division arrangements can have long-term effects on your financial security, and understanding what to expect can give you more control over the outcome. Here’s what you need to know about how New York handles property division in divorce cases.
New York’s Equitable Distribution Rule
In New York, dividing property during divorce doesn’t always mean splitting everything 50/50. New York uses the rule of equitable distribution, which means dividing marital property fairly but not necessarily equally. The court aims to reach a fair outcome based on each couple’s unique situation. Factors like the length of the marriage, each spouse’s financial situation, and future needs all play a role in determining what is fair.
While equitable distribution might seem straightforward, it can involve complex decisions about property value and ownership. For instance, one spouse might receive more of the couple’s marital assets, but the court could balance this by giving the other spouse a larger share of other assets or debt relief. In the end, equitable distribution tries to reach a balance that suits the circumstances of the marriage and each spouse’s needs.
What’s the Difference Between Marital and Separate Property?
One of the most important steps in dividing property is identifying what counts as marital property versus separate property. Marital property includes anything either spouse acquired during the marriage. Separate property includes assets one spouse owned before marriage or received as an inheritance or gift during the marriage.
In a New York divorce, marital property is divided between the spouses based on equitable distribution criteria. Separate property usually stays with the original owner and isn’t subject to division. However, if separate property becomes commingled with marital assets, the courts might treat it as marital property and divide it accordingly.
Commingling happens when a spouse mixes separate property with marital property. For example, if one spouse deposits an inheritance into a joint account that both spouses use, the inheritance might lose its separate status and become marital property. The same principle applies to debts. If one spouse had debt before the marriage, that debt generally remains separate. However, any debt acquired during the marriage, like a joint credit card balance, becomes marital debt and gets divided between the spouses in divorce.
Prenups and Other Property Division Agreements
Couples with prenuptial agreements or prenups can simplify the process of dividing property in a divorce. A prenup allows spouses to decide in advance how to divide their assets and debts if they divorce. In the agreement, they can identify which property will remain separate and how to handle marital property. Prenups can prevent long legal battles because both spouses agree on property division before any disputes arise.
Even without a prenup, couples can agree on how to divide their property after they file for divorce. When both spouses reach an agreement, they can submit it to the court, which will usually approve the arrangement as long as it seems fair.
Factors Judges Consider in Equitable Distribution
When spouses cannot agree on how to divide their property, the court steps in to make the decision. Judges use a variety of factors to determine what is fair for both parties, including:
- Each spouse’s income and property at the time of marriage and divorce
- The length of the marriage
- Each spouse’s age and health
- Whether one spouse will keep the family home, particularly if they have physical custody
- The financial contributions and support each spouse provided during the marriage
- Whether one spouse supported the other’s career or earned potential
- The liquidity of marital assets
- The tax consequences of property division for each spouse
- Whether either spouse wasted or hid assets before the divorce
- Any instances of domestic violence and its impact on the family
- The difficulty of valuing certain assets, such as a business, and whether keeping these assets intact is more practical than dividing them
Contact a New York Divorce Lawyer Now
If you need help with property division in your New York divorce, look no further than CDH Law PLLC. Our team can explain your rights and work to protect your financial future. Contact us today for an initial consultation to get the guidance you need.
Carden Dotzler Hammond, PLLC represents clients in Syracuse, Central New York, and in the following towns and villages of Onondaga County: Camillus, Cicero, Clay, Dewitt, Elbridge, Geddes, Manlius, Marcellus, Onondaga, Salina, Skaneateles, Baldwinsville, East Syracuse, Fayetteville, Jefferson County, Liverpool, North Syracuse, and Solvay.