Divorce is often one of the most emotionally challenging experiences a person can face, and understandably, concerns about finances and property division only add to the stress. In New York, the process of dividing assets during a divorce is guided by specific legal principles designed to ensure fairness. However, “fair” does not always mean “equal,” and understanding how assets are divided can help ease some of the anxiety that often accompanies a divorce. Continue reading and reach out to a knowledgeable Rochester divorce lawyer from Lacy Katzen LLP to learn more. Here are some of the questions you may have:
What Is Considered Marital Property in New York?
The first step in dividing assets is determining what qualifies as marital property. Marital property generally includes all assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title. This can encompass real estate, bank accounts, retirement funds, businesses, personal property, and even debts like credit cards and loans.
However, not everything a couple owns will be up for division. Property considered “separate”–such as inheritances, gifts from third parties, or assets acquired before the marriage–typically remains with the original owner. Still, there are exceptions. If, for instance, a spouse inherits money but deposits it into a joint account, it might be treated as marital property.
How Are Assets Divided in a New York Divorce?
New York follows the principle of “equitable distribution” when dividing marital assets, which means the court seeks to distribute property fairly but not necessarily equally. Several factors are considered to reach a just decision, and these can vary widely from case to case.
Judges will examine the length of the marriage, the income and property of each spouse at the beginning and end of the marriage, and the age and health of both parties. They’ll also consider each spouse’s future financial circumstances, the need for custodial parents to occupy the marital home, and any wasteful dissipation of assets–for example, if one spouse squandered significant funds during the marriage. Sometimes, prenuptial or postnuptial agreements can dictate how property should be divided, provided they meet legal standards.
Because so many factors are involved, asset division can quickly become complicated. This is particularly true when there are significant assets like business interests, complex retirement accounts, or real estate holdings that must be valued and split fairly.
Can Spouses Reach an Agreement Outside of Court?
Absolutely–and it’s often encouraged. Spouses can negotiate and create their own settlement agreement regarding asset division, without leaving the decision entirely in the hands of a judge. Mediation and collaborative divorce are popular options that give couples greater control and often result in less costly and emotionally draining outcomes.
When spouses can reach an agreement, the court will usually approve it, provided it seems fair and not the result of coercion or fraud. Settlement discussions allow for more creative solutions that a court might not be able to offer, such as agreeing to maintain joint ownership of a family home for a certain period.
Ultimately, whether you negotiate a settlement or proceed to litigation, having knowledgeable legal representation ensures your rights are protected, and your financial future is secured. If you have additional questions or would like to speak with a seasoned Rochester divorce attorney, simply contact Lacy Katzen LLP to schedule an initial consultation today.
