New York Info
New York Divorce Start Your Divorce Find Professionals New York Articles Divorce Facts Divorce Grounds Residency Divorce Laws Mediation/Counseling Divorce Process Legal Separation Annulments Property Division Alimony Child Custody Child Support Divorce Forms Process Service Grandparent Rights Forum New York Products Divorce by County
New York Articles
New York Property Division
Property Distribution Laws in New York
In New York the courts generally accept a fair and reasonable property division the parties agree to, but if the parties cannot agree, the Supreme Court divides the marital estate within the Judgment of Divorce.
New York is an equitable distribution state that uses the dual classification of property. The appreciation of separate property is separate. Equitable does not mean equal, or even half, but rather what the Supreme Court considers fair.
The court does not consider marital misconduct. However, economic misconduct - the dissipation of assets in support of drug addiction or gambling or the secretion of assets or the maintenance of a paramour - may result in a compensatory property award to the victim spouse.
Factors in Equitable Distribution
According to Consolidated Laws of New York - Domestic Relations Laws - Article 13 - Sections: 236, the court considers the following factors when distributing property upon divorce:
Marital Property vs. Separate Property
Property acquired from the date of the marriage through the date of separation is marital property and subject to distribution. On the other hand, separate property is immune property, which means assets acquired before marriage, by inheritance or by gift from someone other than the spouse, compensation for personal injuries, property acquired in exchange for separate property, the increase in value of separate property (such as stock appreciation, interest, or real estate appreciation), and property identified by marital agreement of the spouses.
Separate property commingled with marital property becomes marital. Untainted separate property obtained before or during the marriage remains immune from distribution.
In order to establish an asset as separate property, it must remain under the control of the spouse claiming it. Property combined with joint property for the benefit of both spouses becomes marital. In New York, the appreciation in the value of separate property remains separate property.
Unlike many jurisdictions, New York considers advanced degrees marital property.
Depending upon the asset and the agreement of the spouses, different methods of valuation are used to determine the value of a marital asset. When the spouses agree, courts generally accept what they say about the value of an asset. Absent agreement, experts may be retained by the parties or by the courts to determine the value of marital assets. Such experts may include accountants, real estate or business appraisers, or pension valuators. The use of experts adds to the cost of the divorce.
The Marital Home
In New York, as in many jurisdictions, the equity of the marital home is often one of the biggest marital assets. The equity is the market value of the house, less any liabilities against the property, such as a mortgage, taxes, home equity loans. Normally, making this calculation requires a paid real estate appraisal or a real estate agent can prepare a market analysis for free.
From there, couples choose one of three options to divide the equity:
Pensions and Retirement Accounts
In New York, vested pensions are marital property. Vesting means that the worker spouse has met all the requirements for receipt of the pension. Unvested pensions are not marital property. Until the pension has vested, the worker spouse has only an expectancy of interest in the pension.
In New York, the court may include the retirement benefits and plans earned by both spouses as marital assets available for division. Retirement benefits vary greatly but can generally be divided into two groups:
In New York, if spouses share in each others retirement or pension plan, a Qualified Domestic Relations Order must be completed. A QDRO is a written set of instructions that explains to a plan administrator that two parties are dividing pension benefits. The instructions set forth the terms and conditions of the distribution - how much of the benefits are to be paid to each party, when such benefits can be paid, and how such benefits should be paid.
Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
|Women's Rights Manual For Divorce
Cover Price: $
Your Price: $29.95
You Save: $26.00
"The Absolute Best Investment in Your Divorce"
|Men's Rights Manual For Divorce
Cover Price: $
Your Price: $29.95
You Save: $26.00
"Uncover Your Options and Unleash Solutions"
© 1996 - 2020 Divorce Source, Inc. All Rights Reserved.