Articles Posted in Equitable Distribution

Swearing-In-300x211Assets aren’t the only thing that may need to be distributed between two parties when a divorce takes place. Some couples need to think about distributing their debts too – particularly when there is a dispute about whether the couple agreed to take on those financial commitments together or not. In order to prove to the courts of New York and Long Island that a debt should be split, parties must provide some crucial information. Most commonly, the courts will require some evidence that the debt was incurred either for the benefit of the other party, the household, or with the other party’s permission. This is a way that something may be considered marital debt, rather than just “individual” debt.

In most instances the debt that exists at the time of filing the divorce will be open to consideration by the courts. Usually, any debts that are taken on after the divorce case is filed won’t have any traction in the case. However, I have found some exceptions to this rule. For instance, in the case of G.T. v. A.T., 43 Misc. 3d 500, 501, 980 N.Y.S.2d 255, 256, the court was prepared to consider any debt incurred when the divorce was ongoing. However, the court ended up ruling that it was not going to distribute the debt that was incurred during the pendency of the divorce, simply because neither side was able to show evidence that the debt was made with the other’s permission.

In the case above, the plaintiff had a discover card in their name and a Visa and Mastercard in the name of the defendant. The two parties had accrued debt on all of the cards during the pendency of the case. However, as no evidence was available to suggest that the debt was incurred for the benefit of the other spouse, or with the other spouse’s permission, that debt was not be treated as marital debt. My experience is that if post filing expenses or debt is going to be an issue that the parties would want to attempt to get a Pendente Lite Order from the court. This is an order that provides for payments to be made for support and expenses while the divorce is ongoing. Continue reading

Businessdebtpicture-300x200There are many complicated things that a couple may need to address when it comes to managing their divorce. Everything from child custody agreements, to how assets and debts will be shared needs to be considered by the parties involved. In mediation, a mediator such as myself can work with a couple to guide them through their discussions about things like equitable distribution. The process of equitable distribution isn’t just about splitting things 50/50 after all. The parties need to think about how assets and debts can be shared fairly.

The equitable distribution of debt can be particularly complicated. While marital debts need to be shared between both parties, separate debt belongs to a single individual. Determining which debts are marital and which are separate can be difficult at times. Fortunately, when people do not immediate know how an issue should be handled, there are many cases that I can address with parties in divorce mediation or other divorce processes, to help them explore the concepts that come into question during equitable distribution. Continue reading

There are several options when it comes to determining what happens with the marital home in a New York divorce. Of course, the court may award the home to HouseRealtor-284x300either party and require the party receiving the home to buy out the other spouse. A court may also order the sale of a marital residence, and divide the proceeds using the equitable distribution method. Alternatively, the court could defer the sale of a marital residence either by agreement or by order of the court.

It is not common to see a deferred sale of a marital residence when it is not be agreement. This is because a deferred sale by agreement may require the parties to co-own the house for a set period before selling the home or force the non-titled spouse to wait to receive payment for the home. This presents a host of issues, many of which may be insurmountable for a couple in the midst of a divorce. The deferred sale of a marital residence can, however, be included in a divorce settlement if sufficient thought is put into the agreement and the parties are willing to agree on certain issues.

A court can order that the sale of a marital residence be deferred, absent an agreement between the parties. Typically, a court would only do this for the sake of the couple’s children. For example, a court may consider the following when deciding whether to defer the sale of a marital home:

  • The age of the children and what grade they are in;
  • How long the children have lived in the home;
  • The financial ability of the spouses to obtain housing; and
  • The economic detriment to the spouse who would not receive the home.

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One of the most significant decisions in a New York divorce is what happens with the couple’s marital home. In most cases, a couple’s most valuable asset is their couple-house-move-200x300home. Aside from the financial value, there are often other considerations such as the emotional value a house has to one or both parties. In most cases, the couple can work out which party stays in the marital home and what offsets are appropriate. However, if that is the parties are not able to agree, then a judge will determine what happens with the marital home.

Usually, on my Long Island and surrounding area cases, I find that the Judge’s position is that if an agreement about the house is not made, the court will order the house sold and the proceeds divided.  Given both the financial and emotional value of a home, though, some might prefer not to sell the house unless the parties desire to do so. However, there are circumstances in which a New York divorce judge will force the sale of the marital home.  Particularly when the finances would not allow one spouse to remain in the home, a sale of the home is usually the case.

In New York divorce cases, one of the judge’s most important roles is to preserve the value of the couple’s assets. Indeed, under New York law, a judge is given broad discretion to act regarding the determination of title to the property.  Likewise, when discussing equitable distribution, if the court believes either of the parties is wastefully dissipating the couple’s assets, the court may make appropriate rulings. Thus, if retaining ownership of the marital home will result in the dissipation of the couple’s assets, the court can order the home be sold. For example, if the parties are not able to afford the mortgage payment for the marital home because the primary breadwinner in the family lost her job, the court may intervene and order that the home be sold rather than go through the foreclosure process. This is even the case if one of the spouses objects to the sale of the home.

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When a court sets out to divide a couple’s assets in a New York divorce case, the court will not simply split the assets down the middle, but instead it will employ aOutsidequarrelcouple-300x200 system called “equitable distribution.” Under an equitable distribution analysis, a court considers several factors when determining the allocation of assets. Importantly, however, only certain assets that are determined to be “marital property” are subject to equitable distribution. Thus, a party’s separate assets – i.e., those that were obtained before the marriage – will remain with the party to whom they originally belonged.

As a general matter, under the New York Domestic Relations Law, courts will consider assets that were accumulated during a marriage as marital property. Of course, certain exceptions can make the determination of what constitutes marital property fairly complex. For example, a question that often arises is how courts consider pension benefits and the provision of future health care benefits.

Pension Benefits Are Usually Subject to Equitable Distribution

The pension benefits that a party accrues while married will typically be held to be a marital asset that is subject to equitable distribution. The portion of benefits that was obtained before the marriage, however, will not be included as marital property because it was accrued before the marriage.

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Divorce is a complicated process at the best of times, but when you’ve got a narcissistic personality to deal with throughout the entire experience, it can feel like you’re two steps away from tearing your hair out. These people make it feel as though you’ll never be able to move on with your life because they go out of their way to make the settlement as complicated as possible. Narcissists refuse to relinquish their control over a former partner, and that makes coming to terms on things like equitable distribution, maintenance, and more incredibly tricky.

according to “LiveAbout.com“, the characteristics of a narcissist might include:

  • An overwhelming need to be right
  • An obsession with control
  • A lack of interest in negotiation
  • No ability to feel remorse
  • Wants to be admired and respected
  • May go out of their way to slow down the divorce procedure
  • Hangs onto resentment and negative feelings

So, how do you deal with a narcissist in a divorce? The simplest solution is to prepare yourself for a bumpy road.

Dealing with a Narcissist in Divorce

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When it comes to dividing up assets after a New York divorce, New York is an equitable distribution state. This means that, rather than dividing up a couple’s assets straight down the middle, if a court needs to resolve the issue, a court will consider a number of factors to ensure that the marital assets are divided fairly. However, only marital assets are subject t0 an equitable distribution analysis.A spouse’s separate property — such as that which was owned prior to the marriage — will not generally be considered marital property. However, property acquired throughout the marriage, including a businesses started during the marriage, is usually considered to be a marital asset that will be subject to equitable distribution.

In addition to the distribution of marital assets, a court may also order that one spouse pay post-divorce maintenance to the other spouse. The determination of how much spousal maintenance is appropriate is governed to some extent by formula, but it is left largely up to the discretion of the judge overseeing the divorce.

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New York is an equitable distribution state. Thus, when it comes to dividing up a couple’s assets in a New York divorce case, the court will consider a number of factors. However, before the court gets to the point of dividing up the assets, it needs to determine which assets are subject to the equitable distribution rules.Only marital property is subject to equitable distribution. And as a general matter, property that is determined to be the “separate property” of one spouse will remain with that spouse. Courts use a common-sense approach when determining whether property is marital or separate property. Under New York Domestic Relations Law section 13-236, separate property includes property acquired before the marriage and property that was gifted to one spouse by someone other than the other spouse.

In addition, “property acquired in exchange for [separate property] or the increase in value of separate property” will be considered separate property unless the increase in value is due in part to the “contributions or efforts of the other spouse.” This last category of separate property is often the subject of much dispute. A landmark case decided by the New York Court of Appeals set forth the framework regarding how courts view these claims.

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When most people get married, they take into account their prospective spouse’s financial situation. Indeed, to some degree, it would be foolhardy not to take this information into account, given that in most cases a married couple acts as an economic partnership, sharing in both income and expenses. Indeed, New York courts take this reality into account when it comes to dividing up assets following a New York divorce proceeding.The idea behind the economic partnership model of marriage is important to grasp when it comes to understanding how courts divide assets following a New York divorce. New York is an equitable distribution state, meaning that the court does not merely divide up all assets 50/50 and send the parties on their way. Instead, courts take into account a number of factors in determining how to divide a couple’s assets.

New York Domestic Relations Law Article 13 section 236 outlines the criteria courts use to equitably distribute assets after a divorce. In all, the statute lists 13 considerations, including the duration of the marriage, as well as the age, income, and education of the parties. Courts will also consider the sacrifices one spouse made for the benefit of the couple. In addition, courts are able to consider “any other factor which the court shall expressly find to be just and proper.”

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When a couple goes through a New York divorce proceeding, the court is tasked with dividing up the couple’s assets and liabilities. While this may seem intuitively simple, in practice, dividing up assets and liabilities that have accrued over the course of a relationship can be exceedingly complex. In New York, courts use a method called equitable distribution to do this.When a judge uses equitable division to divide up assets and liabilities, the judge takes into account many factors about the couple, including their roles in the marriage, level of education, income-earning potential, and future obligations. The judge will generally not include separate assets or liabilities that were obtained or taken on prior to the marriage.

Back in 2009, the New York Court of Appeals issued an important decision discussing how lower courts should equitably distribute certain assets and liabilities.

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