Queens Equitable Distribution Lawyer

Equitable distribution refers to the fair division of marital property in a divorce. In New York, the court follows the principle of equitable distribution, which means that marital assets and liabilities are divided in a way the court deems fair, though not necessarily equal. For residents of Queens, New York, equitable distribution is governed by New York Domestic Relations Law (DRL) § 236. Even in so-called amicable divorces, when the parties get down to the details of dividing marital assets, things can quickly become contentious. One party may feel they are not receiving their fair share, while the other may feel they are giving up too much. What initially seems like a cooperative process can become a battleground as couples comb through the finer points of asset division. To ensure that your rights are fully protected and that you receive a favorable outcome in dividing assets, it is important to contact an experienced Queens equitable distribution lawyer who understands the importance of securing the most advantageous settlement for your future.

New York is not a community property state; instead, it follows the principle of equitable distribution when dividing assets during a divorce. Understanding the distinction between marital and separate property is important, as it impacts how assets and debts are allocated in a divorce settlement.

The court distinguishes between marital property and separate property. Under DRL § 236(B), marital property includes all property acquired by either spouse during the marriage, regardless of how it is titled. This includes real estate, bank accounts, retirement benefits, and other assets. Separate property, on the other hand, includes property that a spouse owned before the marriage, inheritances, and gifts received by one spouse, as well as personal injury compensation, provided these assets are kept separate and not commingled with marital property.

For instance, if one spouse received a gift from a family member during the marriage and kept it in a separate bank account, it may be considered separate property. However, if the gift was deposited into a joint account, it may become marital property, subject to division.

New York courts consider a variety of factors to determine how marital property should be divided equitably. DRL § 236(B)(5)(d) outlines the factors the court must consider:

• The income and property of each spouse at the time of marriage and at the time of divorce. This factor assesses the financial standing of both spouses, which can influence the distribution of property. By examining changes in income and asset accumulation over time, the court aims to achieve a fair division that reflects each spouse's contributions.
• The duration of the marriage and the age and health of both spouses. Longer marriages often result in a more equal division of property, as both spouses may have contributed to the accumulation of assets over time. The age and health of each spouse can also impact their future earning potential and financial needs.
• The need of a custodial parent to occupy or own the marital residence. This factor recognizes the importance of stability for children following a divorce. A custodial parent may require the marital home to provide continuity and security for the children, influencing the court’s decision on property division.
• The loss of inheritance and pension rights upon divorce. Inheriting assets or pension rights can significantly impact a spouse's financial future. The court considers these potential losses when determining equitable distribution to ensure that neither spouse is unduly disadvantaged by the divorce.
• The contributions or services of each spouse to the marriage, including homemaking and raising children. Non-financial contributions, such as homemaking and child-rearing, are valued equally to monetary earnings. Recognizing these contributions helps the court appreciate the full scope of each spouse's role in the marriage, ensuring that property division reflects their combined efforts.
• The wasteful dissipation of assets by either spouse. Singh v. Singh, 36 Misc. 3d 1218 (N.Y. Sup. Ct. 2012) illustrates this legal concept. In this divorce case, heard by the Supreme Court, Queens County, both parties accused each other of wastefully dissipating marital assets. The wife claimed the husband sold properties and businesses in anticipation of divorce, but the court found no evidence to support this. Bank statements showed that the proceeds from those sales were used to pay marital expenses. The husband argued the wife wasted marital assets by not contributing financially after 2005 and accumulating $24,000 in credit card debt. The court found merit in the husband's claim due to the lack of evidence supporting the wife’s claims about her debt and spending on family necessities. The wife’s actions impacted the total amount of assets she received.
• The future financial circumstances of each spouse. This factor examines the projected earning potential and financial stability of both spouses after the divorce. Consideration is given to factors such as job opportunities, education, and training, which can affect each spouse’s ability to support themselves independently. By evaluating future financial circumstances, the court seeks to ensure that the division of property allows both parties to achieve a reasonable standard of living post-divorce.

These factors are meant to guide the court in dividing marital assets fairly. The court may decide, for instance, that one spouse should receive a larger portion of the marital estate if they have primary custody of the children and will need more resources to maintain a stable home.

Note that the court can make a decision on equitable distribution only if the parties provide documentation to support the value of the their assets. For example, in C.M.S. v. W.T.S., 37 Misc. 3d 1228 (N.Y. Sup. Ct. 2012), while both parties provided some documentation and testified to their salaries, pensions, and various other assets, the court found that the documentation fell short of providing precise details about their assets. In addition, the court implied that the couple’s omissions may have been willful in order to waste time.

Equitable distribution does not only apply to assets; it also applies to marital debts. This includes mortgages, credit card debt, and car loans that were incurred during the marriage. Under DRL § 236, marital debt is typically divided in the same manner as marital assets. The court will determine whether each debt is marital or separate, and then allocate responsibility for repayment accordingly. For instance, if one spouse took out a loan to fund a business, but the business benefits both parties during the marriage, the court may rule that the debt is marital.

In Diaz v. Gonzalez, 984 N.Y.S.2d 65 (N.Y. App. Div. 2014), the defendant appealed a judgment concerning the equitable distribution of marital debt. The Supreme Court had declined to award spousal maintenance and did not equitably distribute the alleged marital debt. The appellate court found that the Supreme Court improperly excluded evidence regarding marital debt, which the defendant claimed was incurred during the marriage. The appellate court ruled that marital debts should be equally shared by both parties and ordered a new trial to determine the appropriate distribution of these debts.

In some cases, one spouse may argue that certain debts were incurred without their consent or knowledge and should therefore be considered separate debt. The court will evaluate these claims carefully, taking into account whether the debt was incurred for the benefit of the household or solely for the benefit of one spouse.

There are several steps you can take to protect your financial interests during a divorce. First, it is important to have a clear understanding of your marital assets and debts. This includes gathering documentation such as bank statements, tax returns, and retirement account information. Consulting an experienced equitable distribution attorney in Queens can help you with this process by identifying any hidden assets or debts that may affect your case.

It is also important to avoid making any major financial decisions without first consulting your lawyer. For example, selling a marital asset or transferring money out of a joint account without your spouse’s consent could be viewed negatively by the court and may impact the outcome of your case.

If you are facing a divorce in Queens, it is important to seek legal advice from an experienced equitable distribution attorney serving Queens who can help you understand your rights and advocate for your interests throughout the divorce process. Whether your case involves complex assets or straightforward property division, an experienced lawyer can provide the guidance you need. For assistance with equitable distribution matters in Queens, contact Stephen Bilkis & Associates at 800.696.9529 to schedule a free, no-obligation consultation regarding your separation agreement case.