NYC Property Division Attorney

NYC Property Division Attorneys Helping with Important Division Decisions

The experienced property division lawyers at The Levoritz Law Firm understand the complexities of asset division during divorce proceedings. We offer trustworthy guidance and personalized representation to help clients make informed decisions regarding their property, with a focus on fairness and efficiency.

Whether through negotiation or litigation, we strive to achieve favorable outcomes while minimizing conflict and stress for our clients. Trust The Levoritz Law Firm to manage your property division case with care and dedication.

Property Division Laws in New York City

New York is an equitable distribution state, which means that marital property is divided based on what the court determines to be fair. This framework considers several factors to achieve a just outcome, including the duration of the marriage, each spouse’s financial contribution, and future financial needs.

Here are a few key points regarding equitable distribution:

• “Equitable” Doesn’t Mean “Equal”: The courts strive to allocate assets in a fair manner, which may result in uneven distribution based on each party’s circumstances.
• Consideration of Non-Monetary Contributions: A spouse’s contributions as a homemaker or caregiver are valued alongside their financial contributions.
• Future Financial Circumstances: Factors like age, health, earning capacity, and the need for a custodial parent to remain in the family home are also considered.

Unlike community property states, where assets acquired during the marriage are split 50/50, New York’s equitable distribution law aims for a fair, though not necessarily equal, division of marital property.

Types of Property: Marital vs. Separate

To understand how property can be divided in a divorce in New York City, it’s helpful first to understand how it’s classified. New York law recognizes two primary types of property within a marriage: marital and separate.

Marital Property

Marital property is generally considered to be all property acquired by both spouses, individually or jointly, during the marriage, even if the property is titled in the name of one spouse only.

Common examples of marital property include:

• The couple’s primary home and vacation homes
• Vehicles
• Household furnishings
• Bank and stock accounts
• Collectibles
• Pensions and retirement plans
• Businesses interests

Notably, advanced degrees, specialized certifications, and the “enhanced earning capacity” of any degree, license, or certification obtained during the marriage also count as marital property.

Separate Property

New York courts don’t divide separate property, which includes property owned before the marriage, inherited property, gifts from third parties to one of the parties, and money received from a personal injury or workers’ compensation recovery.

The following types of separate property are usually exempt from equitable distribution:

• Property owned prior to the marriage that wasn’t used for the benefit of both spouses.
• Inheritances or gifts received by one spouse alone, even if received during the marriage.
• Personal injury awards (with some exceptions related to marital contributions to recovery).
• In addition, certain property may be excluded from the marital estate if you and your spouse have done so through a marital agreement, such as a prenuptial or postnuptial agreement.

“When I started out, the jobs that were available to young lawyers pigeon-holed them into certain aspects of the process. You couldn’t see the big picture. The job was always about examining one piece of a case, and then putting the case together… like it’s on a conveyor belt. Our firm is much more holistic than that.”

Yonatan Levoritz

Schedule Now Call us Now

Factors Affecting Property Division

The state considers various factors when determining how to divide marital property equitably.

Some of the key factors include:

• The income of each spouse and the property acquired during the marriage until the date the divorce was filed.
• The length of the marriage.
• The health and age of each spouse.
• The need for the custodial parent to live in the matrimonial home and own its effects.
• The loss of inheritance rights and pension rights upon dissolution.
• Whether the court has already awarded alimony.
• Health insurance, pensions, their value, and rights to inheritance that both spouses will lose after the divorce process.
• Whether either of the spouses has transferred any matrimonial property after contemplating the divorce and without fairly considering the other partner.
• Tax consequences and the future financial circumstances of each spouse.
• Whether both spouses have equitable claim over the matrimonial property.

Other possible factors include the liquid or non-liquid character of all marital property, whether either spouse has committed domestic violence, and anything else the court deems important, just, and proper that requires consideration.

What Happens to Property in a Divorce When Assets Are Commingled or Transmuted?

It’s often the case that property becomes owned jointly during a marriage, but how that happens, and whether the property was first owned separately prior to the marriage, can add complexity to the division of property that comes with divorce.

According to Domestic Relations Law 236(B)(1)(c), “marital property” means all property acquired by both spouses during marriage and before a separation agreement or divorce action has begun, even if the title is in one spouse’s name. As such, this property is subject to equitable distribution unless it can be proven to be separate property.

In general, when divorce is a possibility, it’s best not to have a joint account unless it’s for convenience of use or access, as it essentially means you’re giving a gift of half of the deposit to your spouse.

Transmutation of Assets

Transmutation of assets happens when property is converted from a spouse’s separate property into marital property. This can occur when one spouse owns real property (real estate) prior to marriage and transfers the title of the property into the joint names of both spouses.

For example, imagine that you and your new spouse move into a house you previously owned, and you put your spouse’s name on the title. Once this is done, it’s presumed that the spouse who owned the property prior to the marriage made a gift of the separate property to the marital estate, and it becomes marital property.

Commingling of Assets

Commingling occurs when separate property becomes marital property because it’s mixed with marital property, such as depositing funds classified as separate property into an account that’s held jointly with your spouse.

To regain the funds as separate property, you would have to trace them to the initial deposit of your separate monies. This can be a difficult process that may require the acquisition and examination of financial records and other documents that date back years.

Steps in NYC Property Division Cases

Carrying out property division in New York City involves several key steps, each of which plays a crucial role in achieving a fair and equitable resolution.

Here’s an outline of the typical steps you might follow in a property division case:

1. Consult a family law attorney to understand your rights and obligations.
2. Gather all relevant financial information, including assets, debts, and separate property.
3. File for divorce or legal separation (if not already initiated) and participate in the discovery process to exchange financial information with your spouse.
4. Obtain valuations for marital assets to determine their fair market value.
5. Engage in negotiation and settlement discussions, considering alternative dispute resolution methods if necessary.
6. If you’re unable to reach a settlement, proceed to court for litigation.
7. Present evidence and arguments regarding property division to the judge, who will make a decision based on the principles of equitable distribution.

Once these steps are complete, the court will hand down a final judgment of divorce or legal separation that includes a property division order. You and your former spouse must comply with the terms of the judgment.

Complex Property Division Situations

In New York City, property division cases often involve significant assets, intricate financial arrangements, and unique circumstances. Couples facing such complexities may have to navigate a myriad of challenges, including the following.

• High-Value Assets: Valuing and dividing substantial assets, including real estate, investments, businesses, and valuable personal property, requires careful consideration to ensure equitable distribution.
• Business Ownership: Determining the value and division of business interests can lead to numerous outcomes, with options including sale, buyout, or co-ownership continuation.
• Professional Practices: Professionals like doctors or lawyers may need to address the valuation and division of their practices, partnerships, or licensing agreements.
• Retirement Accounts and Benefits: Dividing retirement assets entails interpreting tax implications and eligibility criteria, often requiring the use of Qualified Domestic Relations Orders (QDROs).
• Stock Options and Deferred Compensation: Valuing and dividing stock options or deferred compensation, which may be subject to vesting and restrictions, can present additional hurdles.
• Trusts and Estate Planning: Trust assets and inheritances further complicate division, calling for detailed legal review to determine marital versus separate property.
• Tax Implications: Decisions regarding property division often have significant tax consequences, including capital gains and income taxes, requiring collaboration with tax professionals.
• Hidden Assets or Financial Misconduct: Suspicions of hidden assets or financial misconduct could necessitate forensic accounting and investigation to promote transparency and fair division.

How Our Property Division Lawyers Can Help You

The legal professionals at The Levoritz Law Firm know the courts, the system, and the tactics opposition attorneys try to use to their clients’ advantage. They’re prepared to combat them and ensure that your property division is fair and equitable.

Here’s how we can help:

• Examining financial disclosure evidence provided by both spouses to confirm that the information listed in required affidavits is correct.
• Dealing with the tax, benefits, and retirement issues that commonly arise in divorce.
• Bringing in financial advisors if you need additional help understanding the short- and long-term impacts of dividing property or analyzing pension and retirement plans.
• Hiring forensic accountants to determine whether your spouse is attempting to hide assets or do something fraudulent.

Regardless of the extent of your assets, properties, businesses, and accounts, our attorneys will fight hard to protect your rights and interests.