Division of Marital Assets
In an action for Divorce, New York provides that the court may order any part of the marital property divided between the spouses. This is referred to as equitable distribution of marital property. The court must consider a number of "factors" in determining how the marital property should be distributed. These factors are--
(1) each spouse's income and property when they married and when they filed for divorce;
(2) the duration of the marriage;
(3) each spouse's age and health;
(4) the need of the parent with custody to live in the family home and use or own its effects;
(5) the pension, health insurance, and inheritance rights either spouse will lose as a result of the divorce, valued as of the date of the divorce;
(6) whether the court has awarded spousal maintenance (alimony);
(7) whether either spouse has an equitable claim to marital property to which that spouse does not have title, based on that spouse's contribution of labor, money, or efforts as a spouse, parent, wage earner, or homemaker, including contributions to the other spouse's earning potential;
(8) the liquid or non-liquid character of all marital property;
(9) the probable future financial circumstances of each spouse;
(10) if the marital property includes a component or interest in a business, corporation, or profession, the difficulty of valuing that interest and whether it would be desirable for that interest to be retained intact, free from claims or interference by the other spouse;
(11) the tax consequences to each spouse;
(12) whether either spouse has wastefully dissipated marital assets;
(13) whether either spouse has transferred or encumbered marital property in contemplation of divorce without fair consideration, and
(14) any other factor the court finds to be a just and proper consideration.
Marital Property. Only marital property is divided by the court. Each spouse gets to keep his or her own separate property. Marital property includes all property acquired by either or both parties during the marriage, regardless of the form in which title is held. Each spouse's income during marriage, the property purchased with that income, the property they purchased while married (such as a house or car), the retirement benefits each spouse earned during marriage, and the appreciation of all this property while the couple was married, is all considered marital property.
Separate Property. Separate property is not divided when a couple divorces. Instead, each spouse gets to keep his or her own separate property, except to the extent that the other spouse has contributed to its increase in value. Separate property includes:
(1) property either spouse acquired before marriage;
(2) property either spouse received individually as an inheritance or gift, except from the other spouse;
(3) compensation for personal injuries to either spouse;
(4) any property characterized as separate property in a valid prenuptial agreement or other written contract; and
(5) property acquired from the proceeds or appreciation in value of separate property, unless that appreciation is partly due to the efforts or contributions of the other spouse.
Is a business or professional practice subject to equitable distribution?
Yes. Businesses, professional practices, and enhanced earning capacity attributable to the attainment of a career, or professional license, educational degree, profession or license is considered "property" subject to equitable distribution. MORE..