In New York, when a couple files for divorce, one of the most important matters that must be determined is what will happen to their marital assets. In the event the couple cannot agree, the court will step in to divide their property. Contrary to popular belief, the court will not automatically split assets equally, as New York uses the equitable distribution method of determining marital assets. This requires the court to consider the domestic contributions, financial contributions, and economic circumstances of each spouse when dividing marital assets. If you are going through a divorce and need legal advice during the division of property, do not hesitate to contact an experienced Suffolk County property distribution lawyer.
What Is an Equitable Distribution State?
An equitable distribution state differs from what is known as a community property state. In a community property state, all assets that are acquired by either spouse during a marriage are considered shared property. It does not matter which spouse bought or received them. Additionally, these laws state that if the marriage ends in a divorce, each spouse is entitled to half or 50% of the community assets.
In an equitable distribution state, which includes New York, many assets will be considered joint property, but not all. In the event of a divorce, a court will work to divide the property between the two spouses in a way that is considered fair but does not have to be equal. If one spouse makes a significantly higher amount of money, a court may award the lower-earning spouse more assets to ensure an equitable split.
New York Courts do not simply divide assets in half. Instead, the courts will consider a number of factors to make a decision that is fair in accordance with New York law.
Factors Courts Consider During Equitable Distribution
- The length of the marriage
- The income and earning capacity of each spouse
- Each spouse’s age and health
- The standard of living established during the marriage
- If the couple shares children, and the custody arrangement implemented
- The future financial needs of the couple
- Tax consequences of property division
- Marital waste (intentional dissipation of marital assets)
What Are Marital vs. Separate Assets in Suffolk County?
Before the Suffolk County Supreme Court, which handles divorce cases for residents in Bohemia, Islip, and the surrounding communities, can determine which spouse will receive which assets, it must first decide what property is considered marital and what is considered separate. Generally, any assets that a spouse had on their own before the marriage can be considered separate, for example, a car gifted to them before the couple met.
Assets acquired during the marriage are probably now considered marital assets as they were bought or obtained using the funds and circumstances of the marriage. Even if one spouse’s income funded the purchase, if it was intended for familial or marital purposes, it will likely be considered joint property.
Additionally, separate assets can become marital property under certain circumstances. When a couple combines their finances during the marriage, or an asset increases in value due to contributions from both spouses, assets held separately may lose their classification. This is known as commingling, and may ultimately render an asset as marital property and subject to division.
Examples of Assets Commonly Deemed Separate
- Assets owned prior to marriage
- Certain inheritances
- Gifts given specifically to one spouse
- Personal injury awards, in certain circumstances
- Property deemed separate in a valid prenuptial or postnuptial agreement
How Separate Assets Can Become Marital Property
- Mixing inherited assets with jointly held property
- Using marital income to improve separate property
- Adding a spouse’s name to the deed or title of property
- Assets appreciating in value due to contributions made by both spouses during the marriage
Does Property Get Split 50/50 During a New York Divorce?
The answer will vary from state to state, but in New York, no, assets will not automatically be split 50/50 between the couple during a divorce. New York is an equitable distribution state, so while a 50/50 split may be what is fair depending on the financial situation of either party, it is not necessarily going to work out that way.
During a divorce, a court will typically assess the details of each spouse’s financial situation, including their income, debts, earning capacity, financial responsibilities, and more. They will then determine what percentage of the property each spouse is entitled to and distribute certain assets to either party. Because NY is an equitable distribution state, the division of property will be fair but not always equal.
As such, some divorces may result in the roughly equal division of assets, though others may not be equal.
Situations Where Property May Not Be Divided Equally
- One spouse put their career on hold to raise children
- One spouse intentionally wasted marital assets
- There is a significant difference in income between the spouses
- The marriage was long-term
- One spouse has considerable separate property
- One spouse has a higher future earning capacity
- One spouse assumed the majority of the marital debts
Contact an Experienced Suffolk County Divorce Attorney Today
When you are going through a divorce in Suffolk County in which the distribution of assets is a contested matter, or you wish to ensure your rights are protected throughout the divorce process, it’s in your best interest to connect with an experienced attorney at Peter Mandi & Associates. We understand how complicated these matters can be to navigate, which is why we will do everything in our power to assist you through these complex times. When you need help, our firm is here. Contact us today to learn more.
