How Are Assets Divided in a New York Divorce?
Divorce in New York can be complicated, especially when it comes to dividing assets. It doesn’t much matter if you are dealing with common law marriage in New York or a traditional marriage. Working with a lawyer who specializes in New York divorce laws is well worth the investment to make sure that the marriage property is divided fairly.
Overview of Asset Division in New York Divorces
New York is an equitable distribution state, meaning that assets gained during the marriage must be divided fairly but not necessarily equally. In other words, the assets in a domestic partnership in NYC might not be split 50/50.
What Is Equitable Distribution?
Equitable distribution is part of the legal process of dividing assets during a divorce in NY. Unlike some states, New York does not automatically split marital property in half. Instead, the court considers various factors to determine a fair division in a NYC divorce.
New York’s Equitable Division
The process of dividing marital property is governed by New York divorce laws. Marital property includes any assets gained while married, such as real estate, bank accounts, and retirement accounts. Separate property isn’t subject to division, such as assets owned before marriage or gained by inheritance or gift.
Classifying Marital vs. Separate Property
Determining what is marital property versus separate property can be challenging. For example, a joint investment account opened during the marriage is typically considered marital property. However, if one spouse had a retirement account before marriage, it may be classified as separate property.
Factors Influencing Asset Division
The court looks at the marriage length, the earning potential of each spouse, and any other contributions. For example, if one spouse stayed home to raise children, that contribution is considered when dividing assets. Additionally, NY common law marriage rules may be applied if a couple has lived together for a lengthy period of time.
Income, Duration of Marriage, and Contributions
Income levels, the duration of the marriage, and each spouse’s contributions are critical in determining asset division. For example, if one spouse significantly out-earns the other, the court may award a larger share of assets to the lower-earning spouse. Similarly, a longer marriage may result in a more equal division of assets.
Handing Complex Assets in Divorce
Dividing complex assets, such as businesses or investments, requires careful consideration. For example, businesses owned by one spouse may need to be valued to determine what portion, if any, is marital property. Splitting joint investment accounts in divorce can also be complicated and may require expert valuation of NYC marriage records.
Businesses, Investments, Retirement Accounts, and Real Estate
Complex assets require specialized legal and financial advice. These assets may be subject to division. For example, a business that started during the marriage would likely be considered marital property. However, a retirement account opened before the marriage may be treated as separate property.
Prenuptial and Postnuptial Agreements
These agreements outline how assets will be managed in the event of a divorce. If a couple has a prenup agreement, it can override New York State divorce laws and provide a clear plan for asset division. In the absence of such an agreement, the court will commonly rely on equitable distribution principles.
Resolving Disputes Over Asset Division
Disputes over asset division are common in New York divorces. Mediation or arbitration can help resolve these disputes without going to court. However, litigation may be necessary. New divorce laws in New York emphasize the importance of resolving these disputes fairly.
When and How to Litigate Asset Disputes
Litigation becomes necessary when couples cannot agree on how to divide their assets. This process involves presenting evidence to a judge, who will make a ruling based on New York State divorce law. Securing a knowledgeable attorney who specializes in NYS divorce laws is crucial in cases such as these.
Importance of Legal Guidance in Divorce Cases
An experienced attorney can work with you to help you understand your rights, complete the necessary NYS divorce forms for assets and liabilities and advocate for a fair division of assets. The right legal support can often make a substantial difference in dividing assets in a divorce.