Valuations And Marital Property Division In New York
Dividing marital property is a complex and yet necessary part of the divorce process. Couples must split up the property that they own jointly in accordance with state law, and there may be conflicts over how certain assets should be categorized or what appropriate property division looks like in New York. Sometimes, disputes over property division can become highly contentious and could make the divorce take longer than it would otherwise while also increasing costs.
This is why it is so important to understand your options when divorcing. The Fersch LLC team in New York City, can help you explore those options carefully. Founded in 1994, our divorce lawyers have served local families for more than 30 years and are known for our dedication, professionalism and attention to detail. If you fear your divorce will become complex or contentious, we can help you find solutions and navigate this process.
What Is Equitable Property Distribution?
In equitable distribution states such as New York, marital property is not necessarily split equally between the two spouses. Instead, family courts focus on equitable or fair property division. This could mean that a spouse who has a greater level of financial need may receive a higher percentage of marital assets than the other spouse. The court will seek a fair marital property solution for all involved, even if it is not perfectly equal.
It is also essential to define marital versus non-marital property when getting a divorce. For the most part, anything the individual spouses owned before the marriage is separate property and exempt from the process of asset division. However, income earned during the marriage, or assets purchased jointly count as marital property and are subject to division.
In some cases, the status can change. An example of this would be an inheritance that starts out as separate property but becomes marital property when mingled with marital assets (e.g., used to pay the mortgage).
The Complexities Of Businesses And Real Estate
Some of the most complex assets are also the most valuable. For example, you may need to sell the marital home in order to divide it fairly between the two spouses. But there may be other options to consider, such as buying your spouse’s share of the home and refinancing the mortgage.
The same goes for a family business. Couples often sell the business during divorce, or one person takes over as the sole business owner. There are even cases where couples will continue as joint business owners after the divorce.
What Assets Need A Valuation
With some marital assets, it is critical to have a valuation performed. When listing real estate on the open market, for example, where a valuation may involve comparable properties that have recently sold in the same area. A business valuation can also be done by comparing debts and liabilities or projecting future growth for the business. You must keep recent legal changes in mind while doing this. For instance, the FTC ban on noncompete agreements may affect the valuation of a small business.
Splitting Financial Accounts
Finally, you may need to divide certain financial accounts, such as investment holdings or retirement accounts. This can sometimes be done with a qualified domestic relations order (QDRO). The order assigns a percentage of the account to each spouse so that it gets divided in the future – when the person who is earning those benefits retires.
Set Up A Consultation Today
You can see how many financial details there are to keep track of during a high-asset divorce. It is important not to overlook anything, as these are some of the most valuable assets you own. Contact our attorneys online or call our New York office at 212-422-2660 today to set up your first consultation and secure your fair share of marital property.