When you decide to file for divorce, one of the most pressing matters is what will happen to the property you and your spouse own. Unfortunately, property distribution during a divorce can be incredibly complicated, as there are several factors that must be considered. As such, the following blog explores what you should know about this process and the importance of working with Long Island property division lawyers during these complex matters.
How Does New York Classify Property During a Divorce?
First and foremost, it’s important to understand what property is up for distribution during a divorce. When you and your spouse decide to file, you should know that only marital property will be subject to division. The courts will not subject your separate property to division. As such, it is critical to understand what constitutes marital versus separate property under New York state law.
In New York, separate property is anything you owned before or after the marriage that is in your name only. For example, if you purchased a rental property before your marriage, and only your name is on the title, it would be considered separate property and therefore, not subject to division during your divorce.
On the other hand, marital property includes any assets that you purchased during your marriage or with your spouse. This can include things like your primary residence, vacation homes, businesses, or even your vehicles.
You should note, however, that it is possible for separate property to become marital property. This can occur if assets are co-mingled. For example, if you purchase the aforementioned vacation home before your marriage, but use funds from a joint bank account to pay for a renovation to the property, it can then be considered marital property, as you used joint funds. In this instance, the court would consider the increase in value to the property marital, but the actual property itself as separate. However, if you were to deposit an inheritance into a joint bank account, the entirety of the funds would then be deemed joint property.
What Is Equitable Distribution of Property?
Once it is determined what assets are marital versus separate, the court will begin determining how to divide these assets. Under New York law, the courts adhere to the equitable distribution method for joint assets. Essentially, this means all property you and your spouse own together will be divided fairly as opposed to evenly. While in some instances, a fair split of assets is even, a 50/50 division is not always guaranteed. This differs from states that adhere to the community property method of distributing assets, which automatically awards both spouses with an equal share of assets.
To determine how to divide assets equitably, the courts will examine each spouse’s contributions to the marriage. This includes financial and domestic contributions as a means of protecting stay-at-home parents. However, there are a number of other factors that can influence the outcome of this matter, like wasteful dissipation of assets or the difficulty of valuing assets.
When you are going through a divorce, understanding how these assets should be divided is critical. Unfortunately, many are unaware of their rights, which can lead to a less than favorable outcome during these matters. As such, connecting with an experienced attorney with the Sklavos Law Firm is in your best interest. We understand how complicated a divorce can be, which is why we will do everything in our power to make this process as simple as possible. Contact us today to learn more.
