How Is Real Estate Divided in a New York Divorce?

In preparation for your upcoming divorce proceedings, you may learn that New York is not a community property state, but rather follows a system called equitable distribution. With this system, the family court prioritizes fairness rather than an even 50/50 split. And so, you may wonder how tangible property, like your marital residence, can be divided justly in this way. For this, please read on to discover how real estate property is typically divided and how a seasoned Long Island property division lawyer at the Law Offices of Jay D. Raxenberg P.C. can help you keep it in your possession, if this is what you truly desire.

How is the marital residence and real estate property divided in a New York divorce?

First of all, the equitable distribution system only sorts through marital property, which is whatever was acquired during the marriage. That said, the New York family court often treats real estate as marital property. This is especially likely if the mortgage payments were made using marital income, both spouses contributed to its upkeep, renovations, taxes, etc., and both spouses lived in and used the property as their marital residence. Of note, this may be regardless of whether only one spouse’s name is disclosed on the title.

Further, the court may consider one of three main options for distributing a marital residence. For one, they may rule to sell the real estate property and divide the proceeds equitably between the two spouses. Or, they may allow one spouse to “buy out” the other spouse’s share of equity, only if they can reasonably afford it and refinance it. Lastly, they may motion for the appointed custodial parent to stay there temporarily, if moving the children immediately would cause an undue hardship, with a possible selling and distribution date later on.

How does the court decide what a fair distribution of real estate property is?

Say, out of the three options mentioned above, you prefer for your marital residence to be sold and liquidated. At the same time, though, you may want to receive a larger share of these proceeds. Well, you must effectively prove your case for this to the New York family court. For example, you may claim that this is fair and just since you left the workforce to raise your children or prioritize homemaking duties, meaning that you have a reduced future earning capacity post-divorce. Or, you may have documentation that you used premarital funds or separate property (i.e., inheritances and gifts) for the down payment on the property or subsequent renovation or repair projects.

Or, you may favor the idea of buying out your spouse’s shares of your marital residence. To make this happen, you must establish that this is financially feasible for you to undertake. Namely, that you can afford the remaining mortgage payments alone, given your current income and after your spousal support order is determined. Plus, keeping up with property taxes, utilities, and maintenance will not cause you any financial hardship. To decide how to fairly distribute the rest of your marital property if you get to keep the house, the court may prefer that you also have a professional appraiser accurately calculate its equity.

If you wish to gain more clarity on the situation you are dealing with, the best way to get it is by consulting with a competent Long Island family lawyer. Get in touch with our team at the Law Office of Jay D. Raxenberg P.C. today.