When people divorce in New York, they have to make arrangements to split up their property. Unless they have a prenuptial agreement, they have to negotiate a settlement before going to court or risk litigation to divide their assets.
Resources ranging from vehicles and real property to investment accounts are subject to division under New York’s equitable distribution statute. Spouses have to agree on a fair way to divide those assets, as well as any shared debts they accrued during the marriage.
Successful professionals facing divorce often have more complex resources to address. Either spouse might have a deferred compensation arrangement with their employer. Is deferred compensation at risk of division, or does it remain the separate property of one spouse?
Anything earned during the marriage is at risk
Pensions and similar employment-related resources are vulnerable to division in a divorce. Even deferred compensation that a worker has not received yet could be vulnerable. The amount they earned while married may affect property division proceedings.
Deferred compensation might consist of bonuses or stock options. Spouses may need to calculate how much of the deferred compensation one spouse earned during the marriage.
They may also need to cooperate to determine what that compensation might be worth. Stock options, for example, can be very challenging to value a year or more before a worker becomes eligible for the option.
Those expecting a complex property distribution process may need help protecting themselves and their finances. Otherwise, they might agree to unnecessary concessions or fail to seek their fair share of the marital estate.
Learning more about the rules that apply to asset division can help those preparing for upcoming divorce proceedings. Spouses who know what to expect can focus on setting reasonable property division goals and achieving a fair outcome.