Divorce law is an essential factor when divorcing couples. It outlines how assets will be divided, whether through a settlement agreement or court decree. Furthermore, it can determine how debts are split if one spouse incurred debt during their union.
State divorce laws typically divide property in two ways: community property laws or equitable distribution. Under community property, the courts will allocate marital assets equally between both spouses; in many states however, couples have the option to use the equitable distribution method instead.
Equitable division is a legal method of property division that seeks to be equitable for both parties, taking into account all circumstances. The court will consider factors such as the length of the marriage, value of assets, spousal contributions to ownership, and alimony awards when making their determination.
It is essential to remember that New York is an “equitable distribution” state, meaning the court will only evaluate and distribute marital property based on factors such as a spouse’s contributions to the property, age, income or earning capacity, needs of both parties and any alimony awarded by the court.
Equitable distribution can be challenging when business interests and professional practices need to be divided. This may be particularly true if the owner had to work hard or for an extended period of time in order to establish them, leading courts to hesitate awarding these businesses or practices as part of an equitable distribution order.
Conversely, if the owner of a business had to invest significant effort or time into starting it up, judges are likely to give more credit for that than would be given if the property were simply acquired through simple purchase.
You and your spouse bring a valuable antique chair into the marriage that had fallen into disrepair. By encouraging your partner to work on it, its value is significantly enhanced – potentially increasing its worth so much so that the court may recognize it as marital property.
It is also worth noting that passive appreciation of separate property is also considered separate property. This includes assets purchased or improved before marriage and then sold during its course.
Generally, if you and your spouse come to an agreement about property division before marriage, it will be upheld provided it is in writing. This can be a great way to prevent future disagreements over division of assets.
If you and your spouse can’t agree on how to divide the property, a judge will have the final say. That’s why it’s wise to consult a divorce attorney in your area who can guide you through the property division process.
A knowledgeable attorney can assist in reaching an agreement regarding how to divide your property, and they will advocate for your best interests throughout the division process. They ensure that your rights are upheld and you receive fair and just treatment.