DIVIDING ASSETS AND DEBTS DURING A DIVORCE:

During Divorce, Why do You Need an Asset Division Attorney in New York?

Dividing your marital assets and debts accumulated during the marriage is one of the most difficult parts of a divorce, even if your divorce is uncontested. A property and asset distribution lawyer in Manhattan can present your case in a comprehensive way to give you the fairest and equitable distribution.

What is Equitable Distribution and Why You need a Lawyer?

New York is an equitable distribution state. This means that any property or debt you and your spouse acquired during your marriage will be divided equitably during your divorce. Equitable distribution does not mean an even or 50-50 split. It means that the Court will consider the individual circumstances of each spouse and will divide your assets and debts in a fair or equitable manner. Generally, a final award of equitable distribution is not subject to modification. It is therefore extremely important to hire counsel to determine the fairest outcome for you.

 Understanding Equitable Distribution in Divorce

What Is Equitable Distribution?

When a couple gets divorced, the court divides their shared property and debts in a fair way. This is called “equitable distribution.” It doesn’t always mean splitting everything 50/50. Instead, the goal is to make the division fair based on your unique situation. Property includes things like homes, cars, bank accounts, retirement savings, and businesses. Debts might include mortgages, loans, credit card balances, or other bills built up during the marriage.

Equitable distribution only applies to “marital property”—things you and your spouse acquired together during the marriage. Items you owned before marriage or received as gifts or inheritance usually stay separate and aren’t divided.

Marital Property vs. Separate Property

·        Marital Property: This includes assets you both built or bought while married, like a house purchased together, income from jobs, or increases in the value of investments. Even if something is in one person’s name, it might still be shared if it grew due to both partners’ efforts.

·        Separate Property: These are assets you owned before the marriage, gifts given only to you, or inheritances you received. These usually remain yours alone. However, if separate property gets mixed with marital property—for example, using inherited money to renovate the family home—part of it may be considered marital and subject to division.

Debts work similarly—marital debts (like a joint credit card) get divided fairly, while separate debts (like a loan only one spouse took before marriage) might stay with that person.

Commingle or Mixing Property

Sometimes, you may commingle your assets or debts. This is when you mix your separate property with marital property. By mixing certain types of property, you risk turning separate property into marital property, which the court could divide between you and your spouse.

Example: Prior to your marriage, you own a securities account. The Court would consider this your separate property. But, during the marriage, you decide to join your securities account with your spouse’s. Upon making the transfer, your securities account may lose its separate property characteristic and morph into marital property to be distributed equitably during a divorce proceeding.

How Does the Court Decide What’s Fair?

The court looks at many factors to divide assets and debts equitably. Here’s a simple breakdown of key things they consider:

• Income and Property at Start and End of Marriage: How much each person had coming in, and how things changed over time. For example, if one spouse gave up a career to raise kids, that might lead to a bigger share for them.
• Length of Marriage, Age, and Health: Longer marriages often mean more equal splits, especially if one person is older or has health issues that make working harder.
• Needs for the Family Home: If kids are involved, the parent with main custody might get to stay in the home to keep things stable for the children, as long as it’s affordable.
• Lost Benefits from Divorce: Things like losing out on inheritance rights or certain retirement perks because the marriage ends.
• Any Spousal Support Award: If one spouse will pay ongoing support (called maintenance), that might affect how property is divided.
• Contributions to the Marriage: This includes money earned, but also non-money help like being a homemaker, parent, or supporting the other’s career. For instance, if one stayed home so the other could build a business, that effort counts.
• Type of Assets: Easy-to-sell items (like cash) vs. hard-to-divide ones (like a family business). The court might give one person the business and compensate the other with cash or other items.
• Future Financial Outlook: What each person’s job prospects, skills, and ability to support themselves look like after divorce.
• Hard-to-Value Items: For businesses, the court might avoid splitting them and instead give a cash payout to keep things running smoothly.
• Tax Impacts: How dividing things might affect taxes for each person, to avoid unfair burdens.
• Wasteful Spending: If one spouse wasted money (like on unnecessary luxuries or bad investments against advice), that could mean a smaller share for them.
• Hidden or Unfair Transfers: If someone moved assets or added debts right before divorce without good reason, the court can adjust to make it fair.
• Other Fair Factors: Anything else the court thinks matters, like overall behavior during the process.

Debts in Equitable Distribution

Debts are treated like assets—they get divided fairly. The court considers who benefited from the debt (e.g., a loan for family vacations vs. one for personal hobbies). If debts are high, the court might use assets like home equity to pay them off. The aim is to leave both people in a stable spot without one carrying all the burden.

Why It’s Not Always Equal

Fair doesn’t mean equal. In short marriages, one person might get more if they brought in most assets. In long marriages, splits are often closer to equal, recognizing teamwork. Every case is different—it’s about your story.

Contact Manhattan Property Distribution Lawyers at Stepanian Law Firm

Our firm provides every client with personal attention to their case. Since our office aims to find a timely resolution to your matter, you may have the opportunity to move passed a difficult relationship.

Stepanian Law Firm could arrange for a favorable distribution of assets when you and your spouse are separating. Our firm has convenient appointments in the evening and over the weekend, so if you’d like to speak with a Manhattan property distribution lawyer about your divorce legal matters, contact our office today.