Ensure Equitable Property Division With An Experienced New York City Divorce Attorney
Before your divorce can be finalized by the court, you and your spouse will have to agree on the division of your property and assets. If you cannot agree, the judge will order your property division according to the laws in New York.
New York City divorce lawyer Kamelia “Mia” Poppe founded Poppe & Associates to assist clients who are pursuing divorces in New York County, Kings County, Bronx County, Queens County, Westchester County and the surrounding communities. She is a New York City equitable distribution lawyer who will fight to protect your rights during your divorce process.
What Is An Equitable Division Of Assets?
In New York, divorce laws require an equitable division of assets. An equitable distribution means that a couple’s assets will be divided in a divorce in a manner that the courts consider fair and just. An equitable distribution does not necessarily mean that asset division follows a 50-50 split.
The following assets typically have to be divided in a divorce:
- The marital home
- Second homes and/or investment real estate properties
- Vehicles
- Personal property such as household goods, collectibles, recreational items like boats, pets and tools
- Highly valuable assets such as firearms, artwork, collectibles and jewelry
- Financial accounts, including bank accounts and retirement funds
- Assets that may not be accessible until a later time, such as executive compensation and stock options
- Stocks, bonds, cyber currency and other assets that may be hidden from view but have real value
Equitable division does not necessarily mean equal division, as New York is not a community property state. An equitable division means a fair division. To read more about equitable distribution, please see DRL 236(B).
If you are going through a divorce and approaching property division negotiations in New York, it is important to have an experienced divorce lawyer on your side. This is especially true if you and your spouse have a high net worth; it is important to have an experienced divorce lawyer on your side.
What Are The 13 Factors Considered When Determining Equitable Distribution?
When dividing marital property during a divorce in New York, the court considers 13 key factors to ensure a fair and equitable distribution. These factors help determine how assets and debts should be allocated between spouses. The steps are:
- Income and property: The court examines each spouse’s income and property at the time of the marriage and divorce. This includes separate and marital assets, giving the parties and the court a comprehensive view of the financial landscape.
- Marriage duration: The length of the marriage plays a crucial role. Longer marriages often result in a more equal distribution, while shorter ones may lead to a division closer to what each spouse brought into the union.
- Age and health: The court considers the age and health of both parties. This factor is particularly important when determining future financial needs and earning capacity.
- Need for the custodial parent: If children are involved, the court may allocate more assets to the custodial parent to maintain the children’s standard of living.
- Loss of benefits: The court evaluates any loss of inheritance, pension rights or health insurance coverage due to the divorce.
- Liquid versus non-liquid assets: The nature of the assets is considered. Liquid assets like cash are treated differently from non-liquid assets like real estate or businesses.
- Future financial circumstances: The court attempts to predict each spouse’s future financial situation, including potential earning capacity and retirement prospects.
- Tax consequences: Any tax implications resulting from the property division are considered to ensure a truly equitable distribution.
- Wasteful dissipation: If one spouse has wastefully spent marital assets, the court may adjust the distribution accordingly.
- Transfer of assets: Any transfers made during this time are scrutinized to prevent unfair manipulation of marital property.
- Marital home: Special consideration is given to who gets the family home, especially if children are involved.
- Contributions to marital property: Both financial and nonfinancial contributions to acquiring marital property are evaluated.
- Any other factor: The court may consider any other factor relevant to fair distribution.
Understanding these factors can help divorcing couples navigate the complex property division process and work toward a fair settlement.
What Is The Difference Between Marital Property And Separate Property?
Before dividing property, parties in a divorce must determine whether assets are part of marital or separate property. To understand definitions and exceptions such as those outlined below, it is important to have legal representation when discussing the division of property.
Marital property generally includes:
- Assets acquired during the marriage
- Income earned during the marriage by either or both parties
- Property accumulated during the marriage
- Debts acquired by either or both parties during the marriage
Separate property generally includes:
- Assets and property acquired prior to the marriage
- Debt acquired prior to the marriage
- Certain gifts and inheritances acquired during the marriage
- Personal injury compensation awarded to one spouse
In a divorce, separate property generally remains separate, while marital property is generally divided equitably between the spouses.
Are You Liable For A Spouse’s Debts In A Divorce?
When going through a divorce, it is crucial to understand your potential liability for your spouse’s debts. In New York, “equitable distribution” plays a significant role in determining how debts are divided. This means the court aims to distribute marital property and debts fairly, though not necessarily equally.
Typically, any debts taken on during the marriage are viewed as shared responsibilities, even if only one spouse’s name appears on the paperwork. This encompasses various financial obligations, from credit card charges to home loans and personal borrowing. It is important to note, however, that this rule is not absolute. Debts that either partner accumulated before marriage or after deciding to part ways are usually deemed individual liabilities. In these cases, the person who initially took on the debt is generally expected to handle it independently.
The court also considers factors such as each spouse’s financial situation, earning capacity and contributions to the marriage when dividing debts. In some cases, one spouse may be held responsible for a larger portion of the debt if they have a higher income or greater ability to pay.
It is essential to consult with an attorney to understand your specific situation and protect your financial interests during divorce proceedings.
How To Ensure That All Assets Are Disclosed In Your Divorce
A fair and equal division of property in any divorce requires that each spouse disclose all of their assets. It is not uncommon to worry that your spouse may attempt to conceal assets. However, the firm uses a thorough investigative process to uncover and thwart any such attempts.
One of the most important documents in a New York divorce is an affidavit called the Statement of Net Worth. This filing requires that each spouse discloses their income, assets and more. After a divorce is filed and during what is called the discovery process, relevant financial documents are exchanged by both parties. Each spouse is allowed to formally ask questions, called interrogatories, to discover additional details about the other spouse’s financial situation.
A careful investigation will reveal if the numbers do not add up somewhere. In addition, the firm regularly works with a forensic accountant whenever necessary to help make sure clients get the full financial picture.
The Role Of Asset Tracing During Property Division
Asset tracing is a process that identifies the origin of different assets. This process can determine if an asset is considered marital. In the event that asset tracing determines that an asset is a separate property, it will not be included in a couple’s division of property.
When a couple has been married for a long time, the commingling or transmutation of assets is common. Commingling and transmutation are similar processes that happen when an asset starts out as separate property but, over the course of the marriage, evolves into a marital asset, in part or whole. When assets have been commingled or transmuted, asset tracing becomes an important part of the process.
Work With A Respected And Dedicated New York City Divorce Lawyer
As a career family law attorney, Mia is passionate about helping clients approach and proceed through divorce with a hopeful frame of mind. She is a New York City attorney who has valuable experience in all aspects of divorce, including property division, custody issues and spousal maintenance. She also handles high-profile divorces with confidence and discretion.
As you face the challenges involved in your divorce, including those related to the equitable distribution of your marital estate, let Mia be your insightful informant and brave advocate. She can empower you to start the next chapter of your life with the resources and direction that you need to look forward to.
Consult A New York City Equitable Distribution Lawyer
Do you need a divorce lawyer? Are you navigating a high net worth divorce with a lot of assets that make the division of your property complicated? Schedule a consultation with Mia by completing the firm’s online form or by calling 646-665-3903.
