Equitable Distribution in New York Divorce: A Fair Division of Assets

When a couple divorces in New York, their marital property is subject to equitable distribution. This means that the court will divide the property in a way that is fair, but not necessarily equal. Understanding the principles of equitable distribution is crucial for anyone going through a divorce in New York City. At New York Family Lawyers, our experienced divorce attorneys can help you navigate this complex process and ensure you receive a fair share of the marital assets.

What is Equitable Distribution?

New York is an equitable distribution state, meaning that courts divide marital property between divorcing spouses in a manner that is fair and just, considering the unique circumstances of the case and the contributions of each spouse to the marriage. It's important to understand that while New York is a "no-fault" divorce state, meaning that marital misconduct generally doesn't heavily influence property division, egregious conduct like hiding assets or wasting marital funds can still be considered by the court.

Factors Considered in Equitable Distribution

Courts consider a wide range of factors when determining what is equitable, including:

Income and Property: 

The income and property of each spouse at the time of marriage and at the time of divorce, including separate property each party brought into the marriage.

Duration of the Marriage: 

The length of the marriage. Longer marriages often result in a more equal division of property.

Age and Health: 

The age and health of each spouse. A spouse in poor health or with limited earning capacity may receive a larger share of the assets.

Contributions to the Marriage: 

Each spouse's contributions to the marriage, including:

• Financial contributions (income, savings, investments)

• Homemaking (cooking, cleaning, household management)

• Child-rearing (raising children, providing childcare)

• Support for the other spouse's career (e.g., relocating for a spouse's job, putting a career on hold to raise children)

• Caring for elderly parents or other family members

Spousal Maintenance: 

Whether spousal maintenance (alimony) has been awarded. If one spouse is receiving maintenance, they may receive a smaller share of the marital property.

Loss of Benefits: 

Loss of benefits such as health insurance or inheritance rights due to the divorce.

Earning Capacity: 

The present and future earning capacity of each spouse. A spouse with a higher earning capacity may receive a smaller share of the assets.

Tax Consequences: 

The tax consequences of the property division, such as capital gains taxes on the sale of assets.

Dissipation of Assets: 

Whether either spouse wasted marital assets, such as through gambling, excessive spending, or hiding assets.

Domestic Violence: 

Whether there was domestic violence in the marriage. The court may consider this when dividing property to ensure the safety and well-being of the victimized spouse.

Any Other Relevant Factor: 

The court can consider any other factor it deems just and proper, such as the economic fault of either spouse (e.g., hiding assets, incurring excessive debt).

What is Marital Property?

Marital property is generally defined as any assets acquired by either spouse during the marriage, regardless of who has title to the property. This can include:

• Real estate: (primary residence, vacation homes, investment properties)

• Bank accounts: (checking, savings, money market)

• Retirement funds: (401(k)s, pensions, IRAs). These are often divided through a Qualified Domestic Relations Order (QDRO), which instructs the plan administrator to distribute a portion to the non-employee spouse.

• Investments: (stocks, bonds, mutual funds)

• Vehicles: (cars, motorcycles, boats)

• Personal property: (furniture, jewelry, artwork)

• Business interests: (ownership in a business, partnership, or LLC). Valuing and dividing businesses can be complex and may require specialized expertise.

• Stock options: These are often subject to vesting schedules, which determine when they can be exercised.

• Frequent flyer miles: These can be considered marital property and subject to division.

• Debts: (credit card debt, loans, mortgages). Marital debt is typically divided between the spouses.

What is Separate Property?

Separate property is not subject to equitable distribution. It includes:

• Property acquired before the marriage

• Gifts or inheritances received during the marriage, as long as they were not commingled with marital assets

• Compensation for personal injuries, unless it was used to benefit the marriage

• Property designated as separate in a prenuptial or postnuptial agreement

• The increase in value of separate property, unless the increase was due, at least in part, to the contributions or efforts of the other spouse

Valuation of Assets

Accurately valuing assets is crucial in equitable distribution. Different types of assets require different valuation methods:

• Real Estate: Appraisals by licensed professionals are typically used to determine the fair market value of real estate.

• Retirement Accounts: Statements of account and actuarial calculations may be used to value retirement accounts.

• Businesses: Business valuations can be complex and may involve various methods, such as discounted cash flow analysis or market comparisons.

• Other Assets: Expert testimony may be required to value unique or complex assets, such as artwork, collectibles, or intellectual property.

Hidden Assets

Unfortunately, some spouses attempt to hide assets during a divorce to avoid sharing them with their former partner. Our experienced divorce attorneys can use various methods to uncover hidden assets, such as:

• Forensic Accounting: Analyzing financial records to identify discrepancies or inconsistencies that may indicate hidden assets.

• Subpoenas: Issuing subpoenas to banks, financial institutions, and other entities to obtain records that may reveal hidden assets.

• Depositions: Questioning parties and witnesses under oath to uncover information about hidden assets.

Disputes and Litigation

If you and your spouse cannot agree on how to divide your marital property, the matter will be decided by the court through litigation. Our skilled divorce litigators are prepared to represent you in court and fight for a fair distribution of assets.

Protecting Your Assets

There are steps you can take to protect your assets in the event of a divorce, such as:

• Prenuptial Agreements: A prenuptial agreement can clearly define separate and marital property and outline how assets will be divided in the event of a divorce.

• Postnuptial Agreements: Similar to prenuptial agreements, but entered into after the marriage has taken place.

• Careful Financial Planning: Keeping detailed records of your assets and avoiding commingling separate and marital property can help protect your interests.

How Our NYC Divorce Lawyers Can Help

Equitable distribution can be a complex and contentious issue in a divorce. Our experienced NYC divorce lawyers can:

• Identify and value marital property.

• Negotiate with your spouse or their attorney to reach a fair settlement.

• Represent you in court to protect your rights.

• Ensure you receive a fair share of the marital assets.

Addressing Common Concerns

"What if my spouse is the one who wasted marital assets?" If your spouse wasted marital assets, the court may consider this when dividing property and may award you a greater share to offset the loss.

"How can I protect my inheritance in a divorce?" Inheritances are generally considered separate property, but they can become marital property if they are commingled with marital assets. It's important to keep inheritances separate and to consult with an attorney about protecting them.

"What if my spouse refuses to cooperate with the discovery process?" If your spouse refuses to cooperate with discovery, our attorneys can take legal action to compel them to disclose information about their assets and income.

The New York Family Lawyers Difference: Personalized Attention and Strategic Advocacy

At New York Family Lawyers, we believe in a personalized and hands-on approach to every case. When you work with us, you work directly with Cali Madia and Daniel Szalkiewicz, experienced divorce litigators who are passionate about protecting your rights and achieving the best possible outcome for your situation.

We understand that divorce is a complex and emotional process, and we're here to guide you every step of the way. We take the time to listen to your concerns, understand your goals, and develop a customized strategy tailored to your unique needs.

Unlike larger firms where you might get lost in the shuffle, we provide personalized attention and direct access to your attorneys. We handle every aspect of your case personally, from the initial consultation to negotiations and, if necessary, litigation.

Our experience as litigators gives us a unique advantage in equitable distribution cases. We understand how to effectively present your case in court and fight for your fair share of assets. We also leverage technology and utilize comprehensive discovery strategies, including subpoenas, to uncover hidden assets and ensure a complete and accurate picture of the marital estate.

When you choose New York Family Lawyers, you can be confident that you have experienced and dedicated advocates on your side, fighting for your best interests.