Courts in New York divide the property of divorcing couples with equity in mind, though this process becomes more difficult if the spouses own real estate beyond the state’s borders. You might wonder whether your local court even has the authority to divide such properties. To help you plan for the future, it is essential to learn how New York handles these assets during a divorce.
The process of dividing property across state lines
To achieve a fair and just division of marital property, courts follow equitable distribution. This refers to the concept of dividing property between spouses fairly, which is not necessarily 50/50. To decide what is fair, courts in New York examine factors such as how long you were married and the income of each spouse.
Equitable distribution also applies to your out-of-state property. While a New York court cannot directly order the sale or transfer of a property in another state, it does have jurisdiction over you and your spouse. To help them determine how to divide properties in other states, courts consider:
- Whether a property is marital or separate: Marital property refers to assets you own with your spouse, whereas separate property refers to assets that are solely yours. Separate claims may be affected by commingling and marital-funded improvements.
- The property’s value: Courts assess the property’s worth using appraisals, loan balances, tax records and credits for post-separation payments.
This two-step process allows courts to provide each spouse with a fair share of marital property, whether the property is in New York or not.
What to do if you own out-of-state property
If you and your spouse own real estate outside New York, it is important to address it early in the divorce. Gather updated appraisals and records showing how the property came into your hands, as well as how you financed it.
By understanding these requirements and seeking guidance from a legal professional, you can increase the likelihood of a smooth and equitable distribution of property.