Equitable Distribution (DRL 236 B)

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Equitable distribution is the means by which New York State distributes marital property in a NY divorce.

Marital property is defined as any property which is acquired by either party during the marriage, regardless of who holds title to the asset.

Separate property is not part of equitable distribution and includes but is not limited to; property acquired before the marriage, property acquired by inheritance, as well as property designated as separate by a validly executed prenuptial agreement.

Under DRL 236 B (4), mandatory financial disclosure is required for all income and assets without regard to whether it is marital or separate property. Once all property is identified, then each asset is classified as either marital or separate property.

The next step in the process of equitable distribution is the valuation of all marital property. In order to make this assessment, the court must determine a valuation date. This date is anywhere between the commencement date of the matrimonial action to the date of trial. Each asset may have a different date to set value. After the valuation date is set, a monetary value is put on each asset.

When parties enter into a New York settlement agreement, the factors set forth in the equitable distribution section of the Domestic Relations Law are often used as a guide in determining their agreement. The parties settlement can be constructed in a manner similar to the type the court would construe, however, the burden of litigation is absent. At Keil & Siegel, LLP we will structure your economic settlement in a realistic manner. We will devise a fair and practical settlement using the statute as a guide to the distribution of assets.

The following statutory factors are used by the Court to determine the equitable distribution of the marital property:

(1) The income of the parties at the time of the marriage and at the time of the commencement of the action.

(2) The duration of the marriage and the age and health of both parties.

(3) The need of a custodial parent to occupy or own the marital residence and/or household items.

(4) The loss of inheritance and pension rights.

(5) An award of maintenance.

(6) Any equitable claim or interest or contribution made by the non titled party as service as a spouse, parent, wage earner, or home maker. Effects on the career of the other spouse are considered as well.

(7) The liquid or non liquid character of the marital property.

(8) The probable future financial circumstances of each party.

(9) The impossibility or difficulty of evaluating any component asset or any interest in a business, corporation or profession, and the economic desirability of retaining such asset or interest intact and free from any claim or interference by the other party.

(10) Tax consequences to each party.

(11) Wasteful dissipation by either spouse.

(12) Any transfer below fair market value made in contemplation of a matrimonial action.

(13) Any other factor the court deems relevant.

Please contact Keil & Siegel LLP with any questions you have about this process. We will be glad to discuss the distribution of assets with you during your FREE consultation.

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