PROPERTY DIVISION AND VALUATIONS

Once the court determines the “marital pot” or the marital estate, it will begin the process of valuing and then dividing the marital property. New York courts must divide the marital property “equitably.” That means fairly, considering the circumstances of the case and of the parties involved, but it does not necessarily mean “equally.” There is no statutory requirement of a 50/50 split of marital property.

In New York, property is not automatically divided in half and distributed equally to each spouse. Instead, the court takes into account 13 specific factors in determining the equitable distribution of property:

  1. The income and property of each spouse at the time of the marriage, and at the time of the divorce;

  2. The length of the marriage and the age and health of both spouses;

  3. If there are minor children involved, the need of the spouse who has custody of the children to live in the marital residence and to use or own its household contents;

  4. The loss of inheritance and pension rights of each spouse because of the divorce;

  5. The loss of health insurance benefits of each spouse because of the divorce;

  6. Any award of support or maintenance the court will be making;

  7. Whether one spouse made contributions to marital property that the spouse does not have title to; for example, where one spouse helps the other spouse increase their ability to earn more money by getting a degree or certification;

  8. The liquid or non-liquid character of all marital property (“liquid” means that the property can easily be converted to cash);

  9. The probable future financial circumstances of each party;

  10. The impossibility or difficulty of determining the value of certain assets, like interests in a business, and whether one spouse should be awarded the business so it can be run without interference by the other spouse;

  11. The tax consequences to each party;

  12. Whether either spouse has wasted or used up any of the marital property while the divorce was ongoing;

  13. Whether either spouse transferred or disposed of marital property at less than market value, knowing that the divorce would be happening.

Even after considering these factors, the court may take into account “any other factor” it finds to be fair in arriving at an equitable distribution of the marital property.  Also, certain types of property cannot be divided in kind, such as real property.  In that case, the court may make a “distributive award.” A distributive award is a monetary payment by one spouse to the other, either in a lump sum or paid over time to compensate for the property which could not be distributed in kind.

VALUATING & DIVIDING COMPLEX ASSETS

Valuing a business for divorce can be complex and involves determining the fair market value, selecting an appropriate valuation date, and classifying the business as marital or separate property. We work with the finest experts in business valuations with extensive experience uncovering hidden assets as well as identifying, valuing and dividing complex assets such as retirement accounts, stock portfolios, real property, art collections, family businesses, professional practices, jewelry, musical instruments and other assets.