Articles Posted in distribution of property

Pursuant to New York law, when a married couple divorces, the court will typically distribute their marital property in an equitable manner. While in some instances, the process is relatively straightforward, in others, it can be complicated. For example, if the parties comingle separate and marital assets, they may have to provide proof of the nature of the property to establish their ownership interests. Recently, a New York court discussed what level of proof is required in an opinion in which it upheld the trial court’s equitable distribution determination. If you need assistance ending your marriage, it is prudent to consult a New York divorce attorney to evaluate your options.

Background of the Case

It is reported that the husband and the wife divorced. The trial court entered a final judgment in which it determined that the husband’s business held a value of $691,000. Additionally, it granted the wife a credit of $150,000 for her separate property contribution to the marital home. The court made additional determinations with regard to imputed income, attorneys’ fees, and child support calculations. The husband appealed, arguing in part that the trial court erred in granting the wife credit for a portion of the value of the marital home and for adopting her expert’s assessment of the value of his business.

Evidence Used in Making Equitable Distribution Determinations

On appeal, the court affirmed the trial court ruling. In doing so, the court stated that the trial court’s decision to grant the wife a separate property credit amounting to $150,000 for the acquisition of the marital apartment was deemed appropriate. The court explained that the trial court’s reasoning aligned with established New Your case law holding that a spouse’s entitlement to receive credit for their contribution of separate property toward the purchase of a shared marital residence, which includes any contribution that can be directly traced to separate property. Continue reading

Many people who emigrate to New York from other places choose to file for divorce in their native countries to take advantage of favorable laws. Simply because one spouse obtains a divorce decree in another country does not mean that a party cannot litigate ancillary issues such as equitable distribution and spousal support, however. This was demonstrated in a recent New York ruling in which the court granted the wife’s request for equitable distribution and support after the husband obtained a foreign divorce decree. If your spouse filed for divorce in another country, you might nonetheless be able to have certain claims handled by a New York court, and it is smart to meet with a trusted New York divorce attorney to discuss your rights.

History of the Case

It is reported that the husband and the wife were married in 1987 in Bangladesh. They moved to New York in 1994. In the fall of 2015, the wife filed a petition for divorce. However, the court noted that the husband had obtained a default judgment of divorce in Bangladesh earlier that year. Thus, the court scheduled a trial to determine issues such as equitable distribution and maintenance. Following the trial, the court equitably distributed the marital property and ordered the husband to pay monthly maintenance for a term of fourteen years. The husband appealed, arguing the foreign divorce decree barred the wife from litigating issues of equitable distribution and maintenance.

Equitable Distribution Following a Foreign Divorce Decree

On appeal, the court affirmed the trial court ruling. Specifically, the court held that pursuant to New York law, the wife was not precluded from asking the court to rule on the issues of maintenance and the division of marital property. The court explained that New York’s domestic relations law requires a court to equitably distribute marital assets based on the circumstances of a particular action, which requires a consideration of numerous factors. Continue reading

Under New York law, property acquired during a marriage is considered marital property, which means that it belongs to both parties. Thus, if a couple divorces, the court will equitably distribute any marital property. In many cases, however, the parties will not only dispute what constitutes a fair division of any marital property but also whether an asset is, in fact, marital property or the separate property of one spouse. In a recent case decided by the Supreme Court, Appellate Division, Third Department, New York, the court explained the process of determining the value of contributions to separate property during divorce. If you and your spouse intend to divorce, it is essential to retain an experienced New York divorce attorney to help you understand how any property may be divided and what steps you can take to protect your interests.

Facts of the Case

The husband and the wife married in 1999 and had four children. In 2013, the wife filed an action for divorce, and the court entered an interim order for child support and maintenance. A trial was subsequently held, after which the court issued a judgment that, in part, awarded the wife a distribution from the appreciation of the marital home, and ordered the husband to pay the wife child support and maintenance until their youngest child reached the age of eighteen. The court also found that the wife owed the husband child support, since he had sole custody of the couple’s oldest child, but stated the payment was in abeyance until the husband paid the wife maintenance that was in arrears. The court also directed the husband to pay the wife’s counsel fees. The husband appealed on several issues.

Marital Versus Separate Property

The first issue the appellate court addressed on appeal was whether the trial court erred in awarding the wife $25,000 for the appreciation of the marital home. The court stated that it is clear under New York law, equitable distribution does not mean equal, and that a trial court has substantial leeway in determining what constitutes a fair division of assets. In the subject case, the court noted that the husband purchased the marital home prior to the marriage, and it was therefore separate property that was not subject to equitable distribution.

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During a divorce, it is essential to keep in mind that the family business is an asset and a source of income. The parties to a divorce are entitled to divide the marital portion of the business as part of the equitable distribution of their marital assets, and the income the business earns will be considered in determining child and spousal support.

How is the value of the family business determined, then? Besides business tax returns, which do not show the full financial picture of the business, it is important to review and analyze all records. Additionally, “lifestyle analysis” is a viable option since business cash transactions are hard or almost impossible to track.

Rudyuk Law Firm, PC works in close collaboration with highly regarded professional business evaluators and forensic accountants to establish and present to the Courts a true value of the business.