You’ve decided to separate from your spouse. 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 of your case.
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. However, in this situation, “fair” doesn’t always mean “equal.”
In community property states, marital or community property is often divided equally. However, New York law works a bit differently. In this state, courts generally divide marital property, which includes property acquired during the marriage, while separate property usually remains with the spouse who owns it.
Marital Property vs. Separate Property
The Domestic Relations Law (DRL) distinguishes assets based on what you’ve gained during the marriage (marital property) from assets acquired before the marriage (separate property).
On the one hand, marital property includes assets and debts gained during the course of the marriage. Income earned, homes, cars, retirement accounts, and debts are all subject to division. In contrast, separate property refers to assets owned before the marriage. Inheritances, third-party gifts, or personal injury awards will likely remain with the original owner.
Sometimes, separate property can become intertwined with marital property. 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 no agreement exists, an attorney can explain whether a postnuptial agreement, separation agreement, or negotiated settlement strategy may be appropriate based on the timing and circumstances.
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 is intended to be a full disclosure 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 can complicate equitable distribution. If a court finds that a spouse concealed, transferred, or wasted marital assets, it may consider that conduct when dividing property. Depending on the facts, the court may order financial remedies, account for the missing property, or view that spouse’s credibility less favorably. The hiding spouse could receive a smaller share of the remaining property, owe compensation to the other spouse, and suffer credibility damage that may affect alimony calculations. In some cases, child support may be affected, but support is determined by a number of other factors.
Never Hide Assets
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 can seek an equitable distribution and understand the assets you may be entitled to.
Book a Consultation
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 divide your marital assets and to learn proactive steps you can take to improve the outcome, 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.
