New York Divorce Lawyer Blog
In New York, divorces involving substantial assets and complex financial histories often turn on how courts classify property, value investments, and weigh each spouse’s contributions. When millions of dollars, investment interests, and long-term financial planning are at stake, even small variations in a court’s findings can dramatically affect the final judgment. A recent opinion issued by a New York court in a divorce action highlights how these disputes unfold and why skilled legal guidance is essential for anyone facing a divorce involving significant assets or competing claims to separate property. If you are navigating a high-asset divorce, it is critical to consult a knowledgeable New York family law attorney who can protect your financial interests from the outset.
History of the Case
It is reported that the parties married in 2009 and have one child. The wife commenced a divorce action in early 2017, resulting in a nonjury trial and a judgment entered in 2021. The trial court awarded the husband a substantial separate-property credit tied to the purchase of the marital residence, allocated a notable share of the closing costs to the wife, awarded the wife only a modest sum in counsel fees, and failed to distribute a 529 college savings account. The trial court also set maintenance for a limited duration and issued a child support award, prompting the wife to appeal.
Allegedly, the husband cross-appealed, challenging the denial of several claimed separate-property credits relating to investment funds and brokerage accounts. He further disputed the valuation of his interest in an investment company, the allocation of tuition expenses for future college attendance, and the directive requiring him to pay the majority of carrying charges on the marital residence while awaiting its sale.
Courts’ Discretion With Regard to Equitable Distribution
Upon review, the court affirmed many of the trial court’s findings, emphasizing the broad discretion afforded to trial courts when distributing marital property and determining support after a nonjury trial. The court agreed that the husband was entitled to a substantial separate-property credit for funds used to purchase the marital residence, noting that the evidence traced those funds to a gift intended solely for him.
The court also upheld the trial court’s decision to value the husband’s business interest as of the commencement of the action rather than at a later date. The court found that the chosen valuation date was appropriate for a business whose value depended on the husband’s active involvement. The award granting the wife a percentage of that value was likewise affirmed as equitable based on her contributions during the marriage.
The court rejected the husband’s claims for additional separate-property credits, noting that he failed to overcome the presumption that commingled funds became marital property. Evidence suggested that the funds he asserted were separate had been mixed with marital assets or used for joint purposes.
The court also upheld the trial court’s determinations on maintenance and child support, finding that the imputation of significant income to the husband was supported by his earning potential and the family’s lifestyle. The child support award was also deemed proper, including an upward deviation based on the parties’ financial circumstances.
However, the court modified the judgment in two areas. It removed the directive requiring the parties to contribute to future college tuition, finding the issue premature given the child’s young age. The court also held that the 529 college savings account should have been distributed as marital property and amended the judgment to reflect an equal division of that account.
Talk to a Skilled New York Divorce Attorney
High-asset divorces require careful evaluation of property classifications, financial tracing, expert valuations, and support calculations. These cases can significantly affect your long-term financial security, making experienced legal representation essential. If you are involved in a divorce with complex assets, disputed valuations, or questions about separate property, Attorney Ksenia Rudyuk of Rudyuk Law Firm is a skilled New York divorce attorney who can aid you in taking the steps necessary to protect your interests. To schedule a consultation, contact Rudyuk Law Firm at (212) 706-2001 or complete our online form.