Equitable Distribution
New York state is an equitable distribution state. Equitable distribution does not mean fifty-fifty split. There are a number of factors that the court will consider in a divorce to divide the assets and debts equitably. Generally some of the things that effect equitable distribution are marital agreements, when and how the assets or debts where acquired, is the property separate or marital, age, health and needs of the parties.
Equitable distribution can be broken out into three steps. Step one is classification, here a decision is made if the whole or part of an asset or debt is marital or separate. Step two is valuation, the marital portion of the assets need to be valued. Step three is distribution, this is where the assets and debts are distributed equitably to the spouses.
In a divorce we learn about the assets, debts, income and expenses that our client and their spouse have. When we consult with our clients we carefully listen to best understand what is important to them and what their goals are. After we collect this information, we are able to advise our client and work toward resolving their case. Each asset, debt, income and expense source will need to be addressed individually and as a collective.
Equitable distribution can be broken out into three steps. Step one is classification, here a decision is made if the whole or part of an asset or debt is marital or separate. Step two is valuation, the marital portion of the assets need to be valued. Step three is distribution, this is where the assets and debts are distributed equitably to the spouses.
In a divorce we learn about the assets, debts, income and expenses that our client and their spouse have. When we consult with our clients we carefully listen to best understand what is important to them and what their goals are. After we collect this information, we are able to advise our client and work toward resolving their case. Each asset, debt, income and expense source will need to be addressed individually and as a collective.
Assets
There is a variety of things that can be classified as assets when it relates to a divorce. Here are the ones that are most common:
- Real Estate
- Business Interests
- Professional Practice
- Savings and Checking Accounts
- Retirement Assets - Defined Benefit and Defined Contribution
- Brokerage Accounts
- Securities
- Art / Jewelry / Collectibles
- Annuities and Life Insurance Policies
- Intellectual Property / Trademarks
- Health Savings Accounts (HSA) / Flexible Spending Account (FSA)
- Restricted Stock Units (RSU) / Employee Stock Options (ESO) / Restricted Stock
- Trusts
- Educational Savings Accounts (529 Savings accounts)
- Automobiles / Boats / Motorcycles
- Cryptocurrency and NFT (non-fungible tokens)
- Capital Loss Carryover
- Loans - Money or goods lent to others
Debts
Like assets there are many types of debts that can be acquired during a marriage. Here are some examples:
- Mortgages
- Equity Lines of Credit
- Personal Lines of Credit
- Credit Card Debt
- Liens
- Car loans
- Lease Obligations
- School Loans
- Business Lines of Credit
- Money Owed to Friends and Family
Sources of Income
People have a number of ways to earn money to pay for their expenses and create wealth. Here are the most common examples:
- Compensation / Job / Bonus
- Business Interests
- Investment Property
- Stock Options
- Dividends
- Royalties
- Annuities
- Pensions
- Social Security
- Disability Benefits
- Trusts
Expenses
We will just list some of the more important ones:
- Mortgage / Rent
- Property Maintenance and Taxes
- Utilities
- Food
- Car Payments and Repairs
- insurance - Health / Car / Home
- Phone
- Vacations
- Clothing
- Dinning Out, Travel and Entertainment
- Out of Pocket Medical / Vision / Dental
- Baby Sitting
- School / College
- Children's Extra Curricular
- Debt Payments