What Constitutes Marital Property?
Before delving into the factors considered in equitable distribution, it is important to clarify what constitutes marital property in New York. Marital property includes any assets acquired by either spouse during the marriage, regardless of whose name the property is in. This can include real estate, bank accounts, retirement accounts, businesses, and even debts. Conversely, separate property is generally not subject to division in a divorce. Separate property includes assets acquired before the marriage, inheritances, gifts received by one spouse from a third party, and compensation for personal injury. However, there are situations where separate property can become marital property. If a spouse commingles their separate property with marital assets, it may be treated as marital property. For example, if one spouse inherits money and deposits it into a joint bank account used for marital expenses, it may be considered marital property. This distinction between separate and marital property is crucial in equitable distribution cases, as it determines what assets will be divided between the spouses.Length of the Marriage and Contributions
One of the most important factors considered in equitable distribution cases in New York is the length of the marriage. The duration of the marriage can greatly influence how assets are divided. In longer marriages, the court may be more inclined to divide assets more equally, as both spouses are seen to have contributed significantly to the marriage over time. The court will also consider the contributions of each spouse during the marriage, including both financial and non-financial contributions. Financial contributions are relatively straightforward and include income earned by each spouse during the marriage. However, non-financial contributions are also highly significant and often overlooked. These can include the role of one spouse as a homemaker, caring for children, managing the household, and supporting the career advancement of the other spouse. Courts recognize that contributions made by a stay-at-home parent or homemaker are just as valuable as financial contributions made by the other spouse. In many cases, the non-earning spouse may be entitled to a larger share of the marital assets to account for their role in supporting the family.
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The Health and Age of the Parties
Another important consideration in equitable distribution cases is the health and age of each spouse. The court will look at the physical and mental health of both parties when deciding how to distribute assets. If one spouse has significant health issues, the court may allocate more assets to that spouse to ensure that they have the resources needed to cover medical expenses and maintain their standard of living. Similarly, the age of the parties can be a factor, as older spouses may have less time to rebuild their financial security after the divorce, especially if they are close to retirement age. In cases where one spouse is much older or in poorer health than the other, the court may award them a greater share of the marital property. The rationale is that the spouse in better health and with a longer life expectancy has more opportunities to accumulate wealth in the future. On the other hand, younger and healthier spouses may be expected to recover more quickly from the financial impact of the divorce.Income and Earning Capacity
The income and earning capacity of each spouse are also critical factors in equitable distribution cases in New York. The court will examine the current income of each spouse as well as their potential to earn money in the future. In situations where one spouse has significantly higher earning capacity than the other, the court may award a larger share of the marital assets to the lower-earning spouse. This is especially true in cases where one spouse gave up their career or education to support the other spouse or to raise children. Earning capacity is often influenced by factors such as education, job experience, and marketable skills. For example, if one spouse has a high-paying career in a specialized field, while the other spouse has been out of the workforce for years to care for children, the court may compensate the non-earning spouse with a larger portion of the marital assets to help bridge the gap in their earning potential. Additionally, the court may consider whether one spouse requires further education or training to become self-sufficient after the divorce.Related Videos
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