Common Misconceptions About Equitable Distribution in New York

Equitable distribution is the legal principle that governs how assets and liabilities are divided between divorcing spouses in the state of New York. However, despite its importance, there are several misconceptions about equitable distribution that can lead to confusion and misunderstandings. In this blog post, we will explore some of the common misconceptions about equitable distribution in New York and clarify them.

Misconception #1: Equitable distribution means that assets and liabilities are divided equally.Common Misconceptions About Equitable Distribution in New York

This is perhaps the most common misconception about equitable distribution. The term “equitable” means fair, not equal. The court will consider several factors, including the duration of the marriage, the age and health of each spouse, the earning capacity of each spouse, and the contribution of each spouse to the marriage, among others. Based on these factors, the court will determine what is fair, which may or may not be equal.

Misconception #2: The spouse who is at fault for the divorce will receive less in equitable distribution.

New York is a no-fault divorce state, which means that fault is not a factor in determining equitable distribution. The court will only consider factors that are directly related to the marriage and the distribution of assets and liabilities.

Misconception #3: All assets acquired during the marriage are subject to equitable distribution.

While most assets acquired during the marriage are subject to equitable distribution, there are exceptions. For example, assets that were acquired before the marriage, inherited assets, and gifts are generally considered separate property and are not subject to equitable distribution.

Misconception #4: Equitable distribution only applies to property.

Equitable distribution applies to both assets and liabilities. This means that debts acquired during the marriage are also subject to equitable distribution. The court will consider factors such as who incurred the debt, the purpose of the debt, and who benefited from the debt when determining how to distribute it.

Misconception #5: Spouses can reach their own agreement on equitable distribution without court intervention.

While it is possible for spouses to negotiate their own agreement on equitable distribution, the court must ultimately approve it. The court will review the agreement to ensure that it is fair and reasonable and that it complies with New York law.

Misconception #6: Equitable distribution only applies to high-net-worth divorces.

Equitable distribution applies to all divorces, regardless of the net worth of the parties involved. The court will consider the same factors in all cases, although the outcome may vary based on the specific circumstances of the case.

Misconception #7: Equitable distribution is only concerned with dividing assets and liabilities between spouses.

The equitable distribution also includes the division of any retirement or pension benefits that were earned during the marriage. These benefits are considered marital property and are subject to equitable distribution.

Misconception #8: The court must divide assets and liabilities equally between spouses.

As mentioned earlier, the court’s goal in equitable distribution is to divide assets and liabilities fairly, not equally. The court will consider all relevant factors to determine what is fair, which may result in an unequal division of assets and liabilities

Misconception #9: Equitable distribution only applies to divorcing couples who cannot agree on property division.

Equitable distribution applies to all divorcing couples, whether they agree on the division of property or not. If the parties can reach an agreement on their own, the court will still review and approve the agreement to ensure that it is fair and reasonable.

Misconception #10: Equitable distribution is a one-time decision.

Equitable distribution is a decision that can be modified in the future. If there is a significant change in circumstances, such as a change in income or the discovery of hidden assets, the court may modify the distribution of assets and liabilities.

Understanding the principles of equitable distribution is crucial for anyone going through a divorce in New York. By dispelling these common misconceptions, you can have a clearer understanding of what to expect during the process. However, divorce and property division can be complex, and it is always advisable to seek the guidance of an experienced family law attorney. With the right legal guidance, you can navigate the process with confidence and secure a fair and equitable outcome.

As a law firm that specializes in family law matters, including equitable distribution cases in New York, at Jean M. Mahserjian, Esq., P.C, we can help clients navigate the complexities of the equitable distribution process, provide legal guidance, and help clients secure a fair and equitable outcome.

We can help clients understand the factors that the court considers when dividing assets and liabilities during equitable distribution. This includes helping clients identify all marital assets and liabilities and determining which assets are separate property and not subject to equitable distribution.

We can help clients understand and dispel any common misconceptions about equitable distribution in New York. This can help clients make informed decisions during the process and avoid any misunderstandings that could impact the outcome of the case.

We can help clients negotiate with their spouses to reach a fair and reasonable agreement on the division of assets and liabilities. If an agreement cannot be reached, we can represent clients in court to ensure their rights are protected and a fair outcome is achieved.

We can provide ongoing support to clients even after the equitable distribution process is complete. If there are any significant changes in circumstances, such as the discovery of hidden assets, we can help clients seek a modification of the equitable distribution order.

We are well-equipped to assist clients with Common Misconceptions About Equitable Distribution in New York cases. By providing expert legal guidance, dispelling misconceptions, and advocating for clients’ rights, we can help clients secure a fair and equitable outcome in their equitable distribution cases.