New York asset protection in a divorce

When a New York couple gets married, each spouse usually assumes that everything they owned while single will remain theirs to keep in the event that the marriage ends in divorce. This isn’t always the way things turn out, however. Without realizing it, one or both of you can do something that transforms these assets into marital property and therefore subject to equitable distribution in a divorce action.

Separate vs. marital property

In New York, practically all assets that you acquire while married are regarded as marital property. The sole recognized exceptions are:

• Inheritances
• Gifts presented to one spouse only and
• Money awarded to one spouse from a personal injury lawsuit for prior suffering

Everything else is considered part of the marital estate. Many people are surprised to learn that property they acquired before the marriage can be treated as a marital asset during a divorce action under the circumstances like those below:

• If you commingle both separate and marital property, then the entire package may become a common asset in the eyes of the court. A frequently seen example is to let your spouse use your personal bank account to cash checks, pay bills and deposit savings. The account may be in your name, but the funds won’t be treated as yours alone.
• If your spouse contributes to an asset you owned before the marriage, such as a house or business, then he or she may be entitled to a percentage of its value upon divorce.
• Placing your spouse’s name on a title or deed can be interpreted as awarding half the rights in that asset to him or her, even if you owned it while single.

Asset protection in New York divorce

No married couple wants to “plan” for divorce, but it does happen, so set up and keep a complete inventory of what you owned before getting married and when you acquired it. Purchase records such as receipts and service agreements are invaluable, especially if the divorce is contentious and your spouse is out to get everything they can.

Another way to protect your property rights is through a prenuptial agreement, which can establish who owns what and how marital assets will be divided. If no prenuptial was signed and the divorce is amicable, then you and your spouse can bypass the court process and reach a settlement agreement of your own.

If you have assets that you want to protect in the event that your marriage does not work out, then contact a New York family law attorney. You invested a lot of time and money in acquiring this property, and your attorney will advise you on how to protect it to the fullest extent supported by law.