Equitable distribution of marital property and debts is a critical issue in any divorce, especially in those involving complex financial holdings, businesses, or assets. If you are involved in a divorce, you will need to resolve the matter of equitable distribution or division of marital property before your divorce can be finalized. Dow Divorce Law has extensive experience representing husbands and fathers going through the divorce process, and we’re here to protect your hard-earned assets, too. Contact us for an initial consultation today so we can discuss your circumstances.
What Is Equitable Distribution in a Divorce?
Equitable distribution refers to the division of marital property and debts upon the dissolution of marriage. Under New York and New Jersey laws, marital property is divided on the basis of a fair distribution between the spouses. Marital property consists of all property acquired by either or both spouses during the marriage and before any separation or divorce agreement, regardless of how the property is held. Some examples of property that may be considered marital property are as follows:
- Real estate
- Bank accounts
- Stocks and bonds
- IRAs,
- Vehicles
- Boats
- Household furniture
- All other property acquired with marital funds
As of September 1, 2009, new rules apply in any New York divorce action. These rules prevent either party from selling or transferring any real or personal property, withdrawing or transferring any tax-deferred funds, incurring unreasonable debts, removing the other party from any medical or dental insurance policies, or changing the beneficiaries of any life insurance policy once a divorce matter has been filed.
Are Any Types of Property Exempt from Equitable Distribution in NYS?
Fortunately, yes. One of the most important things men should understand about equitable distribution in New York is that not all property automatically becomes subject to division during a divorce. In many cases, certain assets may qualify as separate property, which means they are exempt from equitable distribution.
Generally speaking, separate property can include:
- Property acquired before the marriage
- Certain inheritances
- Gifts specifically given to one spouse
- Compensation from certain personal injury claims
- Property protected through a valid prenuptial or postnuptial agreement
- Certain appreciation on separately-owned assets
- Assets specifically excluded through written agreements between spouses
That being said, one of the biggest issues men run into during divorce is something known as commingling. Simply put, if separate property becomes mixed together with marital property, it may lose its protected status. For example, if you inherited money from a family member years ago, but later deposited those funds into a joint account shared with your spouse, there is a very good chance that your spouse may later argue that those funds became marital property. Similarly, if you owned a home before marriage, but marital funds were later used to renovate or improve the property, your spouse may attempt to claim an interest in the appreciation of that property.
What Factors Do Courts Consider When Determining “Who Gets What?”
When New York courts divide marital property, they do not simply divide everything directly down the middle and call it a day. Instead, courts analyze numerous statutory factors to determine what they believe constitutes a fair distribution of assets under the circumstances. Because judges have broad discretion in these matters, the outcome of equitable distribution cases can vary significantly depending on the facts involved. Some of the primary factors courts may consider are as follows:
- The income and property of each spouse
- The duration of the marriage
- The age and health of both spouses
- Whether one spouse will have primary residential custody of the children
- The future financial circumstances of each spouse
- The contributions each spouse made to acquiring marital assets
- The tax consequences associated with property division
- Whether either spouse wasted marital assets
- Whether one spouse transferred or concealed assets before divorce
- The loss of inheritance or retirement rights resulting from divorce
What Can Men Do to Protect Their Assets from a Divorce?
There are several proactive steps men can take to protect themselves financially before and during divorce proceedings. In many cases, the earlier you begin preparing, the better position you may ultimately find yourself in once litigation begins. Some of the most important things men can do are as follows:
- Keep separate property separate
- Maintain organized financial records
- Monitor joint bank accounts carefully
- Preserve copies of tax returns and business documents
- Avoid large financial transfers before speaking with an attorney
- Consider prenuptial or postnuptial agreements where appropriate
- Work with financial professionals when necessary
- Develop a clear post-divorce financial plan
Contact Dow Divorce Law Today
If you are going through the divorce process, you’re most likely very concerned about what will happen to the property you’ve worked so hard for. Our firm is here to help protect you in every way we can. Contact Dow Divorce Law for a case evaluation today so we can discuss your situation and begin formulating a comprehensive strategy on your behalf.
