What is Equitable Distribution in New York?

Equitable distribution is the system that is used to decide how property is divided between spouses in a New York divorce. The most important thing to know is that equitable doesn’t always mean equal. Let’s break down what else equitable distribution means and how it affects your assets in a divorce.

Marital vs. Separate Property

The first step in equitable distribution is distinguishing between marital property and separate property.

• Marital Property: This includes assets and income acquired during the marriage. This generally means the income was earned through active efforts and the assets were acquired with that income. For this reason, earnings from employment and any savings, investments, and property acquired during the marriage typically count as marital property. Liabilities acquired during the marriage, such as mortgages and credit card debt will also be determined.
• Separate Property: Property that was owned by one spouse before the marriage or assets acquired individually through inheritance or as a gift often remain separate. However, those pre-marital or inherited assets need to have been kept separate from marital assets to protect their identity as separate property. Pre-marital debts, such as one party’s student loans, will also be identified.

In some cases, separate and marital property may mix, which is called “commingling.” For instance, if you owned an investment account from before the marriage but also deposited funds that you earned during the marriage, the entire account could be seen as a marital asset and could complicate the property division process.

Valuing Marital Assets

After identifying what marital property exists, the next step is to determine the value of those assets. Some assets such as bank accounts and investment accounts are fairly easy to value whereas other assets such as real estate, deferred compensation plans, and art may need to be valued by a professional appraiser. Accurately valuing all assets helps you and your spouse to trust that you each know what exists and what is available for distribution.

Dividing Marital Assets

Once the marital property is defined and valued, the distribution process comes into play. While certain types of assets like bank accounts, retirement funds, and joint debts may be split equally, equitable distribution aims for fairness overall, which is based on several factors.

The key factors that influence how assets are divided include:

• Length of the marriage: Longer marriages may lead to more equal splits than short ones.
• Age and health of each spouse: Physical condition and medical needs play a role in what is deemed fair.
• Income and earning potential: Current and future income may influence the distribution, particularly if one spouse has significantly higher earning power.
• Contributions to the marriage: This includes not only financial contributions but also non-financial support, such as managing the household or caring for children. In New York, a spouse who focused on homemaking or supported the other’s career will be considered to have made contributions that are equal to a spouse who earned income outside the home.

RELATED: How to Approach Property Division During Mediation

Other Considerations in Distribution

Additional factors may impact asset division, including:

• Tax Consequences: Different types of assets may carry different tax responsibilities.
• Children’s Needs: Young children or children with special needs may need certain stability that may require, for example, a plan to allow them to stay in the family home.

How Equitable Distribution Ensures a Fair and Balanced Outcome

In an equitable distribution state like New York, dividing assets during divorce involves much more than simply splitting everything in half. An understanding of what qualifies as marital and separate property and carefully considering the specific factors of your situation, such as the length of your marriage, the contributions of each party, and financial needs going forward, will help you achieve a fair and equitable outcome that supports your future stability and well-being.

Contact Vacca Family Law Group to Discuss What an Equitable Distribution of Assets Looks Like for You

Divorce brings not only emotional stress but uncertainty about what lies ahead—especially when it comes to dividing assets. You want to be sure you’re treated fairly, and you may not know how to do so as you move forward. You deserve to have clarity and peace of mind during this process. At Vacca Family Law Group, we focus on finding solutions that work for everyone, ensuring fairness, and helping you create a brighter future. Our team is here to provide you with support and practical guidance every step of the way.

If you’re facing a divorce and want to understand your rights when it comes to the equitable distribution of your assets, let us help you move forward with confidence. Call us at (646) 502-8591 or contact us online for your free introductory call.

Vacca Family Law Group is located at One Grand Central Place, 60 E. 42nd St., Suite 700, New York, NY 10165.