917-924-9790Manhattan Equitable Distribution Attorney
Providing Valuable Legal Guidance to Clients in the Equitable Distribution Process Following Manhattan Divorce Proceedings
One of the most contentious issues during a divorce is the division of marital property. At the Law Office of Julio E. Portilla, P.C., we can help you identify your assets and liabilities and then assist you in taking action to obtain a fair settlement that protects your financial interests.
Divorce proceedings are incredibly difficult on divorcing spouses. The complex process of the dissolution of marriage involves more than simply cutting ties emotionally or romantically with the other party; it also must contend with difficult subject matter like child custody, alimony, child support, and the distribution of property obtained during the marriage. Working with an experienced attorney can make all the difference in the world in helping parties through the distribution of marital assets in pursuit of a successful outcome to their divorce cases. Our New York law firm has extensive experience representing clients in complex divorce proceedings seeking a fair outcome to the equitable distribution of assets. Whatever your specific circumstances, we will work closely with you to defend your rights and protect your personal property.
Contact our Manhattan equitable distribution attorney today at 917-924-9790 for a free consultation.
What Are New York’s Divorce Equitable Distribution Laws?
New York is an equitable distribution state, which means that spouses divide their assets, property, and debts on a fair and equitable basis. Equitable does not necessarily mean an equal 50/50 split. The judge will decide what is considered fair based on many factors, such as each spouse’s contribution, earning ability, duration of marriage, and many other variables.
Everything owned jointly or earned during the course of the marriage may be subject to division by a family law judge.
There are many ways that marital property could be divided, including one partner getting a one-time settlement, a partner getting a settlement that is spread out over time at monthly or quarterly rates, property being sold with the proceeds split between the two partners, among others. Whether you have a small marital estate or a large estate with highly valued assets, it is always preferable for the divorcing parties to agree on asset division. Reaching agreements in the distribution of assets can save a lot of time, money, and stress. However, sometimes that’s not always possible, as the opposing party may dispute property ownership or inheritance rights, thus leading to a contested distribution of assets. In such cases, it is highly recommended that you work with experienced lawyers to ensure that only marital property is divided and that you get what you deserve.
Remember, an equitable distribution of assets does not necessarily mean an equal division of assets. To better understand how assets owned during a marriage are subject to property division in New York, please contact our law firm to speak with the attorney and his legal team.
What is the Difference Between What a Family Court Considers Marital and Separate Property?
In New York, a married couple’s property falls under one of two categories: separate property or marital property.
The distinctions between each type of property include:
Separate Property
This refers to those assets that one spouse held before the marriage, such as:
- Property you owned before getting married
- Certain inheritance or gifts obtained during the marriage
- Compensation awarded for a personal injury
- Items that are protected in a prenuptial or postnuptial agreement
The increase in the value of the separate property will also remain solely the one spouse’s property, unless the other spouse made contributions that resulted in that appreciation.
Marital Property
This refers to all other assets that the spouses have acquired during the marriage.
This includes, but is not limited to, the following:
- The income earned by each spouse
- Property that was purchased using either spouse’s income, such as the family home or vehicles
- Retirement benefits accrued during the marriage
- Appreciation of marital property during the marriage
What Marital Assets Are Subject to Equitable Distribution in New York City?
During a divorce, each spouse keeps his or her separate property. The marital property must be divided equitably between the spouses.
While couples are encouraged to work out an agreement concerning the division of their marital property on their own, some will need to have their matter decided for them by a judge. In either case, the goal is that the assets would be divided to meet both spouses’ needs.
Can Separate Property Become Marital Property?
In certain circumstances, separate property may be considered marital property in the eyes of the law, depending on how it was treated during marriage. In these cases, separate property may become commingled with marital property, and commingled property may be subject to property division in divorce proceedings.
For example, if you own a home before getting married but change the home’s title to include your spouse jointly during the marriage, the home will now be considered commingled and marital property. The same applies to investment accounts, bank accounts, and other financial interests to which you may have added your spouse’s name during your marriage. Similarly, if you deposit the proceeds of something that was separate property, such as a gift from a third party or an inheritance, those funds may be deemed marital property if they were deposited into a jointly owned investment account.
In some cases, it may be necessary to retain the professional assistance of financial experts and forensic accountants to determine the value of certain assets and whether they have become commingled assets. Judicial intervention may be required if the two divorcing spouses cannot agree on what should and should not be considered separate property.
How Do New York Courts Determine a Fair Distribution of Marital Property?
When a divorcing couple appears before a judge for an order concerning the division of their property, they can expect a decision that is equitable. That, however, does not necessarily mean an equal split. The process of determining what is most fair is much more complex than dividing assets 50/50 among the spouses.
The court will take several factors into consideration when determining a fair division of marital property, including the following:
- Age and health of each spouse
- Any financial irresponsibility on the part of either spouse
- Each spouse’s income and property at the time of marriage and divorce
- Evidence of the transfer of marital assets in case of divorce
- Financial and non-financial contributions to acquiring marital property
- Future earning capacity and employment prospects for both parties post-divorce
- Length of the marriage
- Loss of benefits, including loss of inheritance rights, pension rights, or health insurance coverage
- Tax consequences and implications resulting from property division
- The custodial parent’s need to live in the family home
- The foreseeable future financial situation of each spouse
- Type of marital property (liquid or non-liquid)
- Whether or not alimony has been awarded
- And any other factor that the family court may deem relevant to a fair outcome
Because a judge has considerable latitude in deciding which spouse gets what assets, it is important to have a skilled divorce lawyer on your side who can advocate for the property you need and deserve. Although we strive to help couples reach a mutual agreement on their own, we are willing to fiercely litigate on your behalf in the courtroom.
Are Debts Subject to Equitable Distribution?
Equitable distribution plays a major role in determining how debts are divided in a divorce. Any outstanding debts acquired during the marriage may be subject to property division, the same way as any other property obtained during marriage. The court will attempt to distribute marital debts fairly, though not necessarily equally.
Even if only one spouse’s name appears on the paperwork associated with an outstanding debt, if that debt was taken on during the marriage, it will be considered a shared responsibility of both spouses in most divorces. Debts that may be subject to property division include credit card debt, personal loans, home loans, and more.
The debts acquired before marriage or after separation will likely be considered individual liabilities and not subject to asset division. In such cases, the spouse who took on the debt is usually expected to handle it themselves.
For marital debts that are subject to property division, judges will consider many factors, including earning capacity, financial situation, and contributions to the marriage, when it comes time to decide what they believe to be a fair distribution of assets. In some divorce proceedings, one spouse may have a larger responsibility for settling debts than the other because of a higher income or more financially feasible ability to settle those debts.
What is Marital Misconduct in the Equitable Division of Assets?
In divorce proceedings during the distribution of assets stage, marital misconduct generally refers to behaviors committed by one spouse that negatively affect the financial standing of the other spouse and the marital estate as a whole.
New York is a no-fault divorce state, which means that neither spouse is required to prove fault to obtain a dissolution of marriage. Despite that, marital misconduct can play a vital role in deciding how marital property is divided, especially when negative behavior has financial impacts on the other divorcing partner.
Fraudulent conveyance involves one party attempting to hide or devalue marital property to prevent that property from being fairly divided during the divorce. This could be accomplished by transferring money to secret overseas accounts, undervaluing business interests, or quick sales of marital assets below market value.
Wasteful disputation of assets occurs when one spouse purposefully and wastefully spends or mismanages marital assets. For example, if a spouse engages in excessive gambling, spends marital funds on extramarital affairs, or makes reckless investments, this may be considered marital misconduct.
In situations where marital misconduct can be proven, a family court will consider the impact of these actions on the financial stability of the marital estate. If the court determines that the misconduct resulted in a negative financial impact on the other party or the marital assets, this could warrant an adjustment of the division of assets to ensure a satisfactory outcome.
Are High-Net-Worth Divorces More Complicated?
When substantial assets are involved in a family law case, such as a divorce, the property division process becomes more complicated. Properly valuing assets with the help of professionals is often necessary to obtain a true accounting of high-value assets for equitable distribution.
Dividing business interests, including corporations, professional practices, partnerships, and others, can be complex. Accurately valuing business assets is essential to ensure that the division process does not disproportionately affect either spouse’s financial situation.
Valuable collections of art, antiques, real estate, sculptures, and other valuables also require professional appraisals to ascertain their values.
If luxury properties and real estate, including vacation homes or investment properties, are included in the marital estate, they must also be accurately valued for equitable distribution.
It is highly recommended that you work with an experienced family law attorney to ensure that all assets owned, including business interests, retirement assets, and other types of marital property, are divided fairly.
Schedule a Free Consultation with an Experienced Manhattan Equitable Distribution Lawyer Today
You deserve to have the best life-after-divorce possible. Achieving a fair division of property settlement can drastically impact your quality of life. The Law Office of Julio E. Portilla, P.C. is here to help you protect your rights and interests.
There are several benefits to working with experienced lawyers who are well-versed in the New York marital asset division. When it comes time to distribute marital property, you want to ensure that you avoid unnecessary taxes, that your future earning capacity is considered, and that the loss of any benefits, such as pension benefits, is taken into consideration. As your legal representation, our attorney will help you reach a fair outcome in equitable distribution and assist you in the process of dividing property fairly between the spouses. If there is a dispute on how to divide property, it is essential that you seek professional legal counsel.
Call 917-924-9790 today to request a free consultation with our Manhattan equitable distribution attorney to discuss the right path forward.