Dividing Property & Assets in New York

New York is an equitable distribution state. "Equitable" means fair under the circumstances — not necessarily 50/50. The court divides "marital property" equitably after considering statutory factors. **Marital property** includes: - All property acquired during the marriage, regardless of title - Appreciation of separate property due to the contributions of the non-titled spouse - Retirement benefits earned during marriage - Business interests acquired or grown during marriage **Separate property** includes: - Property owned before marriage - Inheritances and gifts to one spouse - Personal injury compensation (except lost wages) - Property acquired by exchange for separate property The critical date is the "commencement date" (date the action was filed) — property acquired between marriage and commencement is marital; property acquired after commencement is generally separate.

New York courts must consider 13 statutory factors when dividing marital property (DRL § 236(B)(5)(d)): 1. Income and property at the time of marriage and at commencement 2. Duration of the marriage 3. Age and health of both parties 4. Need of custodial parent to occupy marital residence 5. Loss of inheritance and pension rights 6. Loss of health insurance 7. Award of maintenance (spousal support) 8. Equitable claim based on property distribution 9. Liquid or non-liquid character of property 10. Probable future financial circumstances 11. Impossibility of evaluating an asset or interest in a business 12. Tax consequences 13. Transfer of property made in contemplation of divorce The court has significant discretion in weighing these factors, which makes outcomes less predictable than in community property states.

Business valuations are common and contentious in New York divorces. The court considers both enterprise goodwill (value beyond tangible assets that would transfer to a buyer) and, in some cases, personal goodwill (value attributable to the individual owner). Valuation methods include: - Capitalization of earnings - Discounted cash flow - Market comparable approach - Asset-based approach Professional practices (medical, legal, accounting) are valued considering factors specific to the profession. New York courts have developed extensive case law on practice valuations. Retirement accounts are divided as of the commencement date using the Majauskas formula (for pensions) or direct valuation (for defined contribution plans). QDROs are required to divide most qualified retirement plans.