Empowering Families

Divorce is complicated, and that’s why I’m doing this “Unboxing Divorce” series to help you better understand how it works and what’s involved. Hey, I’m Katherine Miller. I’ve been a divorce attorney in New York City and New York State for over 30 years. The next issue on my list to unbox is what we call equitable distribution. Essentially, this is the division of assets and liabilities, but it’s a bit more complex than it might initially seem.

First, we need to figure out what assets you have, what they’re worth, and what liabilities you owe—and then divide that up. But there are a few things to consider. One key question is, what gets divided? We’re talking about marital assets, and it doesn’t matter whose name is on the title—whether it’s in your name alone, both of your names, or just your spouse’s name. Marital assets include everything you acquired during the marriage as a result of your own efforts—this could be savings, your house, real estate, retirement accounts, and more.

However, in New York (and keep in mind that laws vary by state), if you received an inheritance or a gift from someone other than your spouse, it’s not considered marital property and isn’t subject to equitable distribution—unless you’ve done something to make it marital, which can happen more easily than you might think. Similarly, if you received a personal injury recovery for pain and suffering, that is also excluded from the assets to be divided.

Another aspect to consider is the division of debt. For example, credit card debt or a mortgage, which would reduce the equity to be divided in any real estate, are also part of the equation.

And then there’s the concept of what’s equitable. Many people assume that means equal, but that’s not always the case. There are numerous cases in New York that clarify equitable doesn’t necessarily mean equal, though it often does. It’s a complex issue, and it’s essential to discuss your specific situation with a lawyer to understand what’s happening in your life.

If you found this information helpful and you have more questions, I’d like you to do two things: First, subscribe to my YouTube channel so you can watch more of my videos. And second, subscribe to my podcast Divorce Dialogues, available wherever you listen to podcasts. Thanks for listening.