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New York is an Equitable Distribution law state. As a resident of New York, it is essential to have a clear understanding of the state’s marital property laws. In a divorce, property division is often one of the most contentious issues, and it is important to have a solid grasp of what is considered marital property and how it will be divided. In this comprehensive guide, I will provide an overview of New York’s marital property laws, including equitable distribution, factors considered in property division, and tips for protecting your assets during a divorce.
Introduction to Marital Property Law in New York
In New York, marital property is defined as property acquired by either spouse during the marriage, regardless of how it is titled. This includes real estate, personal property, and financial assets such as bank accounts, retirement accounts, and investments. Marital property does not include property acquired before the marriage, inherited property, or gifts given to one spouse during the marriage.
Is New York a Community Property State?
No, New York is not a community property state. In community property states, all property acquired during the marriage is considered equally owned by both spouses and is divided equally in a divorce. In New York, property division is based on the principle of equitable distribution.
What is Considered Marital Property in New York?
As previously mentioned, marital property in New York includes property acquired by either spouse during the marriage, regardless of how it is titled. This can include real estate, interests in business, stock accounts, jewelry, other personal property, and financial assets such as bank accounts, retirement accounts, and investments. It is important to note that any increase in the value of the separate property during the marriage may be considered marital property.
Equitable Distribution in New York
In New York, property division in a divorce is based on the principle of equitable distribution. This means that property is divided fairly, but not necessarily equally, between the spouses. This a complex topic and is determined on a case-by-case basis.
The court will consider various factors in determining what is a fair distribution of property, including the length of the marriage, each spouse’s income and earning potential, the age and health of each spouse, and the contributions of each spouse to the marriage.
Factors Considered in Equitable Distribution
When dividing property in a divorce, the court will consider several factors, including the income and property of each spouse, the duration of the marriage, the age and health of each spouse, and the present and future earning capacity of each spouse. The court will also consider the contributions of each spouse to the marriage, including homemaking and child-rearing, as well as the wasteful dissipation of assets by either spouse.
Dissipation is another one of those complex topics which have to be determined based on individual cases.
Marital dissipation can take many forms, such as spending large sums of money on frivolous or unnecessary expenses, gambling, drug or alcohol abuse, or infidelity. Essentially, any behavior that wastes marital assets and reduces the value of the marital estate can be considered marital dissipation. Please note, merely wasting money is generally not enough to prove dissipation.
To prove marital dissipation in New York, the spouse who believes their partner has wasted marital assets must demonstrate that the expenses were not for a legitimate purpose, and that the spending was excessive given the couple’s income and standard of living. It is not enough to simply show that the spouse spent money on something the other spouse disagrees with.
If marital dissipation is proven, the court may award a larger share of the remaining marital assets to the non-dissipating spouse. Alternatively, the court may order the dissipating spouse to reimburse the marital estate for the amount that was wasted.
The 16 Factors Considered in Equitable Distribution
- How much money and property each person had when they got married, and how much they have now.
- How long the marriage lasted and the age and health of both people.
- Whether one person needs to keep the family home or other belongings for the sake of the children.
- Whether one person will lose inheritance or pension benefits because of the divorce.
- Whether one person will lose health insurance because of the divorce.
- Whether one person will get spousal support (alimony) payments from the other.
- Whether one person contributed to the acquisition of property even if they don’t have their name on it (like by being a stay-at-home parent).
- Whether the property is easy to sell (liquid) or harder to sell (non-liquid).
- What the financial situation will be for each person after the divorce?
- Whether it is difficult to put a value on some assets like a business or a professional license.
- How taxes will affect each person’s financial situation.
- Whether either person wasted (spent or lost) assets on purpose during the marriage.
- Whether either person gave away or sold the property for less than it was worth to try to keep it away from the other person in the divorce.
- Whether there was any domestic violence between the two people.
- If the couple has a pet, the court will consider what is best for the pet.
- Any other factors that the court decides are fair and reasonable to consider.
How is Property Divided in a Divorce in New York?
In New York, the property is divided in a divorce through a process called equitable distribution. The court will first identify and classify all property as either marital or separate property. Marital property will then be divided equitably, taking into account the factors previously mentioned. Separate property will be awarded to the spouse who owns it.
Separating Marital Property from Separate Property
When dividing property in a divorce, it is important to separate marital property from separate property. Separate property includes property acquired before the marriage, inherited property, and gifts given to one spouse during the marriage. Marital property, on the other hand, includes property acquired by either spouse during the marriage, regardless of how it is titled.
Under the Equitable Distribution Law, separate property is:
(1) property acquired before marriage or property acquired by bequest,
devise, or descent, or gift from a party other than the spouse;
(2) compensation for personal injuries;
(3) property acquired in exchange for or the increase in value of
separate property, except to the extent that such appreciation is due in
part to the contributions or efforts of the other spouse;
(4) property described as separate property by written agreement of
the parties pursuant to subdivision three of this part.
Protecting Your Assets During Divorce
If you are going through a divorce, it is important to take steps to protect your assets. One way to do this is to keep accurate records of all of your assets and in particular your separate assets, including bank accounts, investments, and real estate.
If you commingle separate property assets with marital assets you could risk turning it into marital property.
It is also important to avoid making any major financial decisions during the divorce process, as this can impact the division of property.
Conclusion: Understanding New York’s Equitable Distribution Law
In conclusion, understanding New York’s equitable distribution law is essential if you are going through a divorce or considering divorce in the future. Marital property includes property acquired by either spouse during the marriage, and property is divided equitably based on several factors. It is important to take steps to protect your assets during a divorce, and hiring a lawyer can help ensure a fair division of property. By understanding New York’s marital property laws, you can be better prepared for the divorce process and can work towards a successful resolution of your case.
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