When your assets are on the line in your divorce, it’s imperative to understand how to determine what is marital versus separate property. If you are worried about what will happen to gifts, for example, during your divorce, you’ll want to keep reading. You’ll learn how New York divides assets between a married couple and the importance of discussing your circumstances with a Long Island property division lawyer.
How Does New York Distribute Assets in a Divorce?
In New York, assets a couple share will be divided according to the equitable distribution method. Essentially, this method divides assets based on each spouse’s contribution to the marriage, both financially and domestically, to distribute the assets fairly as opposed to evenly. While the court may find that you are both entitled to an equal share of the assets, this is not the standard division, and it is the court’s discretion to change how much of the assets each spouse receives based on their findings. To fairly divide assets between a couple, the court will consider the following factors:
- The duration of the marriage
- The income of each spouse
- The standard of living established during the marriage
- Alimony and child support awards, if applicable
- Tax consequences
As mentioned, only assets shared by the spouses will be subject to distribution. These assets, known as marital property, generally include anything obtained during the marriage. This differs from separate property, which represents assets obtained before or after the marriage. However, in some circumstances, assets obtained during the marriage may be considered separate property. During a divorce, the separate property remains the asset of the spouse who owns it.
What Happens to Gifts?
It’s imperative to understand how gifts given to a spouse or exchanged between spouses are handled. Generally, if a spouse receives a gift from a third party, it is considered separate property, even if they obtained the asset during the marriage. For example, if you were gifted a motorcycle for your birthday from your uncle during the marriage, it would remain your property as you were the sole intended recipient. However, like other separate property, if you co-mingle it with marital assets, it can become joint property. If you use marital funds to pay for repairs to the vehicle, for example, it would convert to marital property and would be subject to distribution during the divorce.
You should also note that gifts exchanged between spouses during the marriage are considered marital property, and as such, are subject to distribution during the divorce. This does not mean you must give the gift back, however. Instead, you’ll find the most common option is that an asset of equal value will be given to your spouse instead.
As you can see, property distribution can be a complicated process when divorcing. In order to ensure your separate assets are protected, it’s in your best interest to connect with an experienced attorney from the Law Offices of Jay D. Raxenberg. We understand how difficult these matters can be to navigate, which is why we are committed to helping you through this difficult time. Contact us today to learn how we can assist you.
