Inherited Assets and Equitable Distribution New York’s Approach

Going through a divorce or separation can feel overwhelming. If you are dealing with the complexities of Equitable Distribution, especially when it involves inherited assets, it is completely normal to feel confused and uncertain about how things will unfold. At this challenging time, you might be wondering how certain properties or assets—like family heirlooms or inherited wealth—will be divided between you and your spouse. Understanding how New York law handles the division of these assets during a divorce is essential in helping you make the right decisions and protect your interests. If you are looking for legal help, you can rely on a team that is deeply empathetic toward your situation. They will guide you step by step through the process of Equitable Distribution.

Jean M.
Mahserjian, Esq.

Ashley
Mahserjian, Esq.

Taylor J.
Alimari, Esq.

 

Joe
Capisciolti, Esq.

 

What is Equitable Distribution and How Does it Affect Inherited Assets?

Equitable Distribution is the way New York courts divide marital property during a divorce. Unlike some states that split property 50/50, New York aims to divide property fairly and equitably, taking into account various factors. This is where things get complicated. Marital property, which includes assets earned or acquired during the marriage, is usually divided between the spouses. However, when it comes to inherited assets, the law treats them differently. Inherited assets are generally considered separate property, meaning they do not fall under the same rules as marital property. For example, if you inherit a family home or money from a relative, that property is typically not subject to Equitable Distribution. However, there are exceptions. In some cases, inherited property can become marital property if it was commingled with marital assets or used for the benefit of both spouses during the marriage.

When Inherited Assets Become Marital Property

While inherited assets are usually considered separate, certain circumstances can cause them to lose that status. One key factor is commingling, which occurs when separate property is mixed with marital property. For instance, if you inherit money from a relative and then deposit that money into a joint bank account that both you and your spouse use, it could be considered commingled. This could result in the court treating it as marital property.

The staff is extremely friendly and knowledgeable. They truly care about their clients and walk you through the process every step of the way. I highly recommend Jean and here team for any legal needs.

– Joseph B.

Was a real advocate for me while going through my divorce. Responded to emails and calls promptly and guided me through the entire process. Fair, responsive and frankly a light during a tough time.

– Melissa W.

Another situation is when the inherited property is used for the benefit of both spouses or the family. For example, if you inherit a house and then decide to use that house as a family residence, it could be seen as a marital asset, especially if both you and your spouse contributed to its maintenance or improvement. In these cases, the courts will examine the intent behind using the inherited property and determine whether it should be considered marital property.

The Role of the Court in Dividing Inherited Assets

New York courts follow a specific process when dividing assets, including inherited ones. When a couple goes through divorce proceedings, both spouses are required to disclose all assets and liabilities. This means that even if you have inherited property, you must provide full disclosure of its existence. The court will then evaluate whether the inherited property should remain separate or be divided as part of the marital estate. The court will consider several factors when making this determination, including the length of the marriage, the contributions of each spouse to the acquisition of property, and whether either party has made significant contributions to the maintenance or improvement of the inherited property. In situations where inherited property becomes commingled with marital property, it becomes crucial for both spouses to provide evidence that can clarify whether certain assets should remain separate.

Related Videos

How long does a Divorce take?

What is a no Fault Divorce in NY?

How to Protect Inherited Assets During Divorce

If you want to make sure your inherited assets remain protected and are not subject to Equitable Distribution, there are certain steps you can take. One of the most effective ways is to keep your inherited assets separate from marital property. For instance, you should avoid mixing inherited money with joint accounts or using it to purchase property that is used by both you and your spouse. Another way to protect inherited assets is through a prenuptial or postnuptial agreement. These agreements can outline how inherited property will be treated in the event of a divorce, ensuring that both parties are clear about the status of such assets. If you are concerned about the future of your inherited property, it may be worth consulting with an attorney to discuss your options and create an agreement that aligns with your needs.

The Complexity of Inherited Assets in Long Marriages

In long marriages, determining the fate of inherited assets can become more complicated. The longer a couple has been married, the more likely it is that inherited assets have been intertwined with marital property. This can make it more difficult to distinguish between separate and marital property. Courts will look closely at how the inherited property was treated during the marriage and whether both spouses benefited from it. For example, if a couple has been married for 20 years, and one spouse inherited a business at the beginning of the marriage, the business might have been used to support the family during that time. Even though the business was inherited, it could be argued that both spouses contributed to its success. In such cases, the court might decide that the business, or part of it, should be considered marital property subject to division.

How Our Firm Can Help You Navigate the Process

At Mahserjian & Mahserjian-Ortiz, PLLC, we understand that the process of dividing assets during a divorce can be a daunting and emotional experience. Whether you are dealing with inherited assets or the complexities of commingling property, our team is here to help. We are committed to providing you with the support you need and ensuring that your rights are protected throughout the entire process. Our attorneys will work closely with you to assess your situation and determine the best approach to safeguard your inherited assets. From providing legal counsel to representing your interests in court, we are here to guide you every step of the way. Divorce can be overwhelming, but with the right legal assistance, you can achieve a fair and equitable resolution. If you need help with Equitable Distribution and protecting your inherited assets, we are here for you. Contact us today to learn how we can assist you in achieving the best possible outcome for your case.

To learn more about this subject click here: Equitable Distribution and Spousal Support Understanding the Connection