You’ve come to the conclusion that you and your spouse should separate. The decision is difficult on its own, and concerns about how a divorce will divide your assets can make it even more stressful. To learn what to expect, it helps to know how the law approaches asset division. In New York, equitable distribution governs how to divide assets when a marriage ends. It determines a fair division of assets, which is more complex than a 50/50 split.
An experienced divorce lawyer will explain how these laws apply in your situation and outline practical steps to protect your assets. They’ll also explore how hidden assets may affect the outcome.
Michelle Cimino is a Rochester attorney experienced in equitable distribution. She can help you understand how your assets may be treated as you move forward with divorce.
What is Equitable Distribution?
Equitable distribution is how the state of New York determines the division of assets in a divorce. Rather than splitting assets down the middle, it aims for a “fair” outcome.
While states with community property laws mandate a 50/50 split of all assets, New York limits the division of assets to what was acquired during the marriage.
Marital Property vs. Separate Property
The Domestic Relations Law (DRL) distinguishes assets based on what you’ve gained during the marriage (marital property) from before the marriage (separate property).
On the one hand, marital property includes assets gained during the course of the marriage. Income earned, homes, cars, retirement accounts, and debts are all subject to division.
On the other hand, separate property refers to assets owned before the marriage. Inheritances, gifts to a spouse, or personal injury awards will likely remain with the original owner.
Sometimes, separate properties become marital property throughout the relationship. For instance, a spouse might add their name to the title of a house.
Because these distinctions quickly become complex, legal counsel helps you make better decisions to protect your assets.
How a Divorce Lawyer Protects Your Assets
To fully understand how equitable distribution applies to your marriage, it’s best to consult an attorney. By enlisting legal support, you’ll be able to move through the process with clarity about how your property will be affected.
During a consultation, an attorney will explain which assets are likely to be considered marital or separate. They may ask you to gather and present all the evidence that shows you acquired the asset outside of the marriage, including records of titles, receipts, and appraisals.
They’ll inquire if a prenuptial or postnuptial agreement is valid in your marriage. If one doesn’t already exist, and you haven’t started the divorce process, a lawyer might recommend that you draft a postnuptial agreement.
Hidden Assets and Equitable Distribution
One critical factor in asset division is whether one partner attempts to hide assets from the other. In a divorce under the DRL, both parties must disclose all their finances in a Statement of Net Worth, sworn under penalty of perjury. This should be a complete snapshot of each spouse’s assets and liabilities to ensure equitable distribution.
Some ways a spouse might hide or conceal assets in a divorce include:
- Underreporting income through cash business or offshore accounts
- Transferring property to friends or relatives
- Undervaluing assets
- Delaying income or creating fake debts
Hidden assets count as dissipation, which refers to when a spouse conceals or wastes assets during the breakdown of the marriage to intentionally deprive their spouse of them.
If a court determines that a spouse dissipated assets, the hiding spouse could receive a smaller share of the remaining property, owe compensation to the other spouse, and suffer credibility damage that impacts alimony and child support.
To avoid negative repercussions and to keep the divorce process honest, never hide assets. If you suspect your spouse is hiding assets, a divorce attorney will explain the steps you can take to uncover those assets and support a better outcome in your divorce.
Are you looking for a trusted divorce lawyer to help you navigate the division of assets? Michelle Cimino is a compassionate, experienced divorce attorney with decades of experience protecting clients’ assets. When she learns more about your circumstances in a private consultation, she’ll recommend the next steps to ensure a fair divorce process so you secure the assets you’re entitled to.
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If you’re considering separating from your spouse, it’s important to understand how equitable distribution will affect your assets. Marital property refers to what you’ve acquired during the marriage. On the other hand, separate property includes what you brought into the legal partnership.
To better understand how a divorce will separate your assets, and to learn proactive steps you can take to improve the outcomes, speak to a divorce attorney like Michelle Cimino. With over 20 years of experience helping clients through the divorce process, she wants to help you protect your assets.
Schedule a confidential consultation today.
