One of the most contentious elements of many New York divorce cases is addressing issues associated with assets and debts. Indeed, arguing over property can cause a divorce case to drag on indefinitely, and oftentimes unnecessarily.
Manhattan property division lawyers, with a significant background in divorce proceedings, can work to lessen the tension and drama associated with the distribution of assets and debts when a marriage comes to an end. In addition, a person contemplating a divorce best understands his or her legal rights and interests by developing a basic understanding of marital property is dealt with in a New York divorce case.
Legal Standard for Dividing Assets and Debts in a New York Divorce
The state of New York has adopted what is known as the equitable division standard when it comes to dividing assets and debts in a divorce case. The equitable division standard mandates that the assets and debts accumulated by the parties to a marriage are divided in a fair and equitable manner in divorce proceedings.
The equitable division standard does not mean that property and debts are divided equally. Equal division is what is done in a community property state, like California. The vast majority of states in the United States use the same equitable division standard as used in New York.
Factors Considered in Applying the Equitable Division Standard
A court considers a number of factors when it comes to the application of the equitable division standard. These include a consideration of who will have primary custody of the children and whether alimony will be awarded in the case. The specific facts considered in dividing assets and debts are unique to each individual marriage dissolution case.
Defining Marital Assets
Only marital assets and debts are subject to division in a divorce case. In other words, as a general rule this represents property acquired and debts amassed from the date of the marriage until a point in time associated with divorce proceedings.
Property owned outright by a party prior to a marriage normally will not be considered to be a marital asset. The same holds true for preexisting debt.
There are exceptions to this general rule, however. For example, if marital assets are utilized to pay off a debt acquired by a party before the marriage, that use of marital funds will be taken into consideration in determining how assets and debts are divided in a divorce case.
Complex Property Valuation in High Net Worth Divorce
It can be a difficult task to assign a value to different items. Nonetheless, this is a key step in the process of property division. You may not even realize how valuable your marital assets are if you or your spouse have a cash-based business or any other unreported income streams.
A well informed Manhattan property division attorney can help you to review assets, including:
- Real property
- Professional practices and small businesses
- High value Intellectual Property
- High art
- Cars, boats, and other types of vehicles
- Various family heirlooms
- Investment instruments such as stocks, bonds, and mutual funds
- Foreign funds
- Retirement plans