How to Handle Property Division in a Divorce in NY (Guide)

When a marriage doesn't work out, it ends in a divorce. While some people may look forward to new beginnings, others are often worried about the financial implications a divorce may have. Conflicts over dividing assets are common, but in states like New York, the law ensures an equitable distribution of property.

Divorce & Family Legal, LLC has skilled New York divorce attorneys who remain committed to approaching each case with the utmost professionalism and compassion. They know the New York laws pertaining to property division in a divorce and can guide clients on what to expect during this turbulent legal process. They can advise on how to handle child custody during divorce in NY as well.

This guide will go over how parties can handle property division following a divorce in New York and what they need to do to ensure a favorable outcome.

What Is Separate Property?

When it comes to property division in a divorce, New York laws require dividing marital property based on certain factors. This makes it incredibly crucial to identify separate property, as not everything will be split.

Separate property refers to the properties or assets a spouse owns prior to their marriage. This is different from the property or assets the couple builds during their marriage.

Separate property remains with the spouse, and it may include the following:

• Real property

• Personal property

• Inheritances received before and during the marriage

• Gifts from family and friends

• Personal injury compensation (typically pain and suffering, as lost wages and medical bills might be paid from marital funds)

• Any assets or properties mentioned in valid prenuptial or postnuptial agreements

What Is Considered Marital Property?

Marital property refers to the properties and assets that both spouses bought or accumulated during their marriage. It may include income earned or real estate purchased during marriage, retirement accounts, businesses, and investments.

After a divorce, these types of properties are split between both parties. New York laws also take debt into consideration when splitting up marital assets.

Some assets may require a proper evaluation. For example, houses can go up in value, which is why expert valuation is a must to ensure that the properties are split fairly.

There is a common misconception that a property in one spouse's name may not be up for distribution. That’s not true. In New York, title or ownership of a particular asset is also treated as marital property if it was acquired during the marriage.

A key thing to remember is that in certain cases, the law may treat separate property as marital property. This is often true when spouses mix up these types of assets.

For example, a wife deposits her inheritance into a joint account prior to the divorce. This can complicate the legal process, which is why it's important to document everything.

New York Is an Equitable Distribution State. How Does This Affect Divorces?

Since New York is an equitable distribution state, it divides marital assets based on fairness. There is no mathematical equation that one needs to follow to split up their assets. A spouse may receive 60% of the property while the other is left with 40%.

The goal of equitable distribution is not to punish one spouse or favor the other. It's to ensure an outcome that makes the most sense. To reach a decision, the court may ask many questions, including the following:

• Who contributed financially and how much?

• Did one spouse sacrifice career advancement to raise children or support the other's professional growth?

• Which spouse faces greater financial challenges post-divorce?

An equitable asset division in a divorce settlement may seem unfair, especially when emotions are at an all-time high. However, it offers protection to both spouses, ensuring their future needs are met.

A spouse with primary custody may receive a greater share of the marital property, as they are responsible for the child’s upbringing. For more information, the best family lawyers in Albany may be able to help.

How to Prepare for Property Division in a Divorce in NY

Going into a divorce can be scary, which is why it's important to prepare for it to ensure a favorable outcome. Parties should take the following steps for an equitable distribution of property:

1. Create a list of separate and marital assets and properties

2. Gather documents to provide proof of the ownership of separate property

3. Consider their financial needs after the divorce

4. Avoid hiding or transferring assets out of fear

5. Reach out to an experienced divorce attorney for guidance

   
   

How to Handle Property Division in a Divorce in NY

There are two ways to handle property division in a divorce in NY, including the following:

Mediation and Negotiation

Mediation is almost always recommended, especially in sensitive cases involving child custody or property distribution.

Under this arrangement, spouses work together to decide the division of property. There is no judge involvement, which means that the couples have greater control over the outcome of the divorce. Each spouse has the right to get an attorney involved to protect their best interests.

Unlike going to court, mediation costs less. The process is also much simpler, and the spouses can resolve matters among themselves much quicker.

Another thing to note is that mediation allows for creative solutions that a judge may not think of. One spouse may decide to keep the house while the other may take retirement funds. This is not possible when pursuing legal action.

Going to Court

When mediation fails or the divorce is messy, court intervention may be necessary. If a spouse is hiding assets or engaging in financial misconduct, a judicial oversight could protect the interests of the other spouse.

During the trial, both sides will have to exchange financial disclosures, provide documentation, and record witness statements. To overcome the challenges associated with this legal process, it's crucial to partner up with an experienced divorce attorney.

If a spouse needs to live in the family home (also known as the marital home), the lawyer will help build a strong case to protect their client's interests. They can also explain how to handle divorce when domestic violence is involved in NY.

What Are the Factors That Determine the Equitable Distribution of Property in NY?

There are several factors a New York court will consider before deciding how to split up the marital property. Some of the most common ones include the following:

• The length of the marriage

• Each spouse's income at the time of marriage and divorce

• Each spouse's property, including bank accounts, at the time of marriage and divorce

• The age and health of each spouse

• The earning capacity of each spouse

• The future financial circumstances of each spouse

• The needs of the custodial parents when it comes to occupying the marital residence

• Financial and non-financial contributions to the marriage of each spouse

• Wasteful dissipation or hiding of assets

• The tax consequences of property division

Even after considering the abovementioned factors, the court may also look into other factors that are relevant to the case before making a decision.

Ensure a Fair Asset Division with an Experienced New York Divorce Lawyer Today!

Don't let a divorce affect your financial future. If you need help handling property division in Albany, New York, call us to schedule a free consultation with a trusted divorce lawyer today!