How Assets Are Divided In A Divorce In New York State?

In a long-term marriage, it is customary for assets to be divided equally between spouses. However, this rule has many exceptions, depending on the situation. One exception is the definition of marital property.

Marital property generally refers to any property or asset, whether tangible or intangible, that is acquired or that increases in (active) value during the course of a marriage. This can include money put into an asset, such as a piece of property, an investment account, or a retirement account. “Active” increase means a non-market-based increase (a/k/a “appreciation”) – a common example is contributing money towards the down-down of a mortgage during the marriage. It the “active appreciation” component which is marital property – not the entire house or financial account.

It’s important to note that, under New York state law, title does not usually matter. That means it doesn’t matter (generally) whose name is on the house or account. This rule applies regardless of whether the asset in question is a piece of property, an investment account, or a retirement account.

There are a few things to keep in mind when it comes to combining separate property with marital assets. First, any premarital or inherited assets that went into the account must be considered. This can often create a complicated situation, especially if one party claims they had separate property when the marriage began. Second, any assets acquired during the marriage are generally considered marital property and will be divided between both parties during divorce proceedings.

During the marriage, many couples add their spouse’s name to joint assets such as property or financial accounts. By doing so, they “commingle” premarital and marital funds, which can have important implications in the event of a divorce. According to the law, “commingled assets” are presumed to be marital property – unless the party seeking to keep them can prove that they were only used for convenience purposes (1 example: depositing money from a premarital account into a joint/marital account & then withdrawing it a short time later).

For more information on the Division of Assets in A Divorce In NY, an initial consultation is your next best step.

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