Dividing Marital Assets: Strategies for a Fair Settlement in New York Divorces

Beyond 50/50: Understanding Equitable Distribution in New York Divorces

Splitting assets in a divorce isn’t just about numbers—it’s about securing your future. In New York, the law follows equitable distribution, meaning everything from your home to your savings is divided based on fairness, not a straight 50/50 split. A New York divorce attorney can help make sense of the process, ensuring you get a settlement that reflects what’s right for you.

Knowing how property division works and using the right strategies can strengthen your position. Whether you’re sorting out shared finances or deciding what happens to considerable assets, understanding your rights can help you move forward confidently.

Quick Summary:

• In New York, assets in a divorce are split fairly, not equally. The court looks at things like each person’s income, how long the marriage lasted, and the health of both spouses. This process, called equitable distribution, helps decide who gets what based on each person’s situation.
• Marital property includes things bought or earned during the marriage, like homes, savings, and retirement accounts. Separate property, such as things owned before marriage or gifts you received, stays with the original owner. If mixed with shared assets, separate property may be treated as marital property.
• The court considers many factors when dividing property, such as how much each spouse earns and their ability to support themselves in the future. The length of the marriage, who takes care of the home, and whether one spouse needs to stay in the family home are also critical. The court may also consider the age and health of each spouse when making decisions.
• It’s necessary to share all your financial information to ensure fair division. Valuing things like property, businesses, and retirement funds properly is key. Mediation and talking things out can be faster and less stressful than going to court, though sometimes going to court is needed for challenging cases.

The Difference Between Marital and Separate Property in Suffolk County

When two people marry, their finances often mix, but not everything is considered shared. Understanding the difference between marital and separate property is key in a divorce. Knowing this can help you protect your assets and avoid surprises when dividing them. 

Marital Property

In New York, marital property is more than just what’s listed under a spouse’s name—it includes nearly everything gained during the marriage. Whether you or your spouse bought, earned, or invested in those items, it’s generally considered joint property. That means assets acquired during the marriage are subject to division in a divorce. Understanding this is necessary, as it can include more than you might realize. Some examples of marital property include:

• Money earned by either spouse while married
• Homes and properties bought during the marriage
• Businesses started or expanded during the marriage
• Retirement accounts and pensions that grow during the marriage
• Bank accounts and investments funded with marital income

Separate Property

Separate property refers to assets that belong exclusively to one spouse and are generally not subject to division in a divorce. In New York, separate property remains with the individual spouse and includes the following:

• Things owned before getting married
• Inheritances that are given to just one spouse
• Gifts given to one spouse by someone outside the marriage
• Personal injury settlements, except for compensation related to lost wages, which could be considered marital property

Commingling

Commingling occurs when separate property is mixed with marital assets or used for joint expenses. In Suffolk County, once separate property is commingled, it may be treated as marital property and divided in a divorce. Some common examples are:

• Putting inherited money into a joint bank account and using it for shared expenses
• Using individual property to pay for things like the marital home or family bills
• Adding a spouse’s name to the deed or title of property that just one spouse originally owned

Understanding Equitable Distribution in New York

When a couple in Suffolk County divorces, one of the most important issues to address is how to divide the marital assets. In New York, this is based on the principle of equitable distribution, outlined in Domestic Relations Law Section 236B.

What is Equitable Distribution?

Equitable distribution does not mean dividing assets 50/50. Instead, it refers to the fair division of property based on several factors. Considering each party’s situation, the court’s goal is to distribute the assets justly.

Factors the Court Considers in Equitable Distribution

The court looks at various factors under the Domestic Relations Law to determine how to divide marital assets. These include:

• Income and Earning Capacity of Each Party: The court will evaluate both parties’ current income and future earning potential. That helps determine how much each party can support themselves financially after the divorce.

• Length of the Marriage: The longer the marriage, the more likely the court will consider the assets as jointly accumulated, which can influence how they are divided.

• Age and Health of the Parties: If one spouse is significantly older or in poor health, the court may award them a larger share of the assets to account for their future needs.

• Contributions to the Marriage: This includes financial contributions, like working outside the home, and non-financial contributions, such as homemaking and childcare. Each party’s efforts in maintaining the household and raising children are also considered valuable.

• Need of the Custodial Parent to Occupy the Marital Residence: If one party has primary custody of the children, the court may allow them to remain in the marital home, especially if it is deemed necessary for the well-being of the children.

• Future Financial Circumstances: The court also looks at the financial future of each spouse, including their ability to support themselves and any potential need for spousal support.

• Wasteful Dissipation of Assets: If one spouse has wasted or misused marital assets (for example, spending money irresponsibly), this can affect the division of assets, as the court may penalize that party.

Strategies for a Fair Settlement in Suffolk County, New York

Dividing marital assets and negotiating a fair settlement during a divorce can be a challenging process. However, with the right strategies, both parties can reach an outcome that works for them. If you’re going through a divorce, these asset division tips for Suffolk County divorce can help ensure the result is fair for everyone involved.

Full Financial Disclosure

In a divorce, it’s critical to be honest about your finances. Both parties need to share all their financial information to ensure a fair asset division.

• Why Transparency Matters: Being truthful is necessary. If you don’t reveal all your assets, it can lead to serious consequences, like penalties from the court.
• How Discovery Works: Lawyers use different methods to find hidden assets. These include financial affidavits, written questions (called interrogatories), and depositions (questions asked under oath). These tools help both sides see everything that’s being divided.
• Risks of Hiding Assets: Trying to hide assets or say they are worth less than they are can lead to bad decisions from the court and even legal penalties. Being open helps make the process fair.

Valuation of Assets

When dividing marital assets in Suffolk County, ensuring everything is valued correctly is key to fairness. Different things need different methods to figure out their true worth.

• Real Estate: A qualified appraiser usually sets the marital home’s value. It’s essential to pick an appraiser who knows the local Suffolk County market.
• Businesses: Valuing a business can be tricky, and different methods might be used depending on the type of business. These could include income-based, market-based, or asset-based approaches.
• Retirement Accounts: Dividing retirement funds needs a legal document called a Qualified Domestic Relations Order (QDRO). This order helps divide retirement accounts like pensions, 401(k)s, and IRAs.
• Other Assets: Things like jewelry, art, collectibles, and personal property must be appraised to ensure they’re divided fairly. These items can have a lot of sentimental or financial value.

Negotiation and Mediation

Settling a divorce outside court can be less stressful, faster, and more affordable. When both parties negotiate or use mediation, they have more control over the outcome and avoid the uncertainty of a trial. New York divorce attorneys are essential in this process. They protect your rights and guide the discussions toward a fair agreement.

Mediation can also be a helpful way to resolve issues. In mediation, a neutral mediator helps spouses discuss their problems and find a solution that works for both. Sensitive topics, like child custody or dividing assets, can benefit from this approach.

Taking the Dispute to Court

Sometimes, a settlement outside of court isn’t possible, and going to court becomes necessary. If negotiations fail or the issues are too complicated, litigation may be the only way to resolve the dispute.

During litigation, both sides present their evidence and arguments to a judge, who will decide on asset division, alimony, and child custody. However, litigation can be expensive and take up more time, with no guarantee of a favorable outcome. It usually takes longer than other options like negotiation or mediation and can add emotional stress for everyone involved.

Secure a Fair Asset Division—Contact Our New York Divorce Attorney Today!

Dividing marital assets during a divorce can be complicated and emotional. At Donato Law, we are here to help you through it every step of the way. As experienced New York divorce attorneys, we will guide you through the complex equitable distribution process, ensuring your rights are fully protected. We focus on family law and estate planning, offering various legal services to support you during these challenging times.

Contact us today for a free consultation. Let our team help you secure the best possible outcome for your situation. Don’t go through this process alone—call now!