When New Yorkers go through a divorce, they will need to determine how assets should be divided. The process used to divide assets and liabilities is known as equitable distribution. In order to determine how assets will be divided, it is important for the couple to figure out which property is considered marital and which property is considered separate.
Marital Property vs. Separate Property
In order for a couple to determine the difference between marital and separate property, they will have to figure out when all of the property was acquired. Any property that was acquired prior to the time in which the couple was married is considered separate property. Some property that was acquired during the course of the marriage can be considered separate as long as they were kept in a separate account from marital funds. This may include inheritances, lawsuit compensation, and gifts. Additionally, if the couple had a valid prenuptial agreement, there may be certain items that were agreed to remain separate. Aside from those exceptions, all other property that is acquired throughout the marriage is considered marital property.
Debts and Liabilities in Divorce
One question that divorcing couples will often ask when it comes to dividing assets is regarding what happens to the couple’s liabilities. If the couple has debt together that was acquired during the marriage, it may be included in the equitable distribution process. Of course, it varies from case to case.
If you have questions about dividing property in New York, contact the experienced attorneys at The Law Office of Peter L. Jameson today.