How Does Property Division Work in Divorce?

Often, the issue that couples worry about most when they separate is how their assets and debts will be divided. New York law calls for property division to be carried out equitably, but this does not necessarily mean equally. This month, we discuss what assets and liabilities are subject to division in divorce, the factors that are considered in making those decisions, and how a non-adversarial divorce team can help couples divide their property in a way that feels most equitable to them.

We also include a video of a webinar that Andrea Vacca presented to financial advisors addressing how couples can discuss pre-and postnuptial agreements and other issues related to these agreements.

You can learn more about property division and pre- and postnuptial agreements on our website. And remember, if you have questions, contact us at any time.

Andrea Vacca,

Collaborative Attorney and Mediator

How Does Property Division Work in Divorce?

One of the most important challenges that couples face when divorcing or legally separating is how to divide the assets and debts they acquired during the marriage. These assets and debts are called marital property. In New York, marital property is divided in a divorce based upon the legal concept of equitable distribution.

Typical assets to be divided include homes, businesses, bank and investment accounts, retirement accounts, stock options and other deferred compensation, vehicles, jewelry, antiques, and art. Typical debt to be divided includes mortgages, lines of credit, credit card debt, student loans (for the couple or their children) and personal loans.

It is important to clarify which assets and debts were accumulated prior to the marriage or inherited by one spouse during the marriage. These assets and debts are called separate property. When a spouse has contributed separate property to a marital asset, they may be entitled to a separate property credit against that asset.

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Discussing a Prenuptial or Postnuptial Agreement With Your Partner

Financial professionals often find themselves on the front line with clients asking questions about prenuptial and postnuptial agreements. Jason Breit, Director of Teaming & Advanced Planning at Charter Oak Financial, invited Andrea Vacca to explain to their financial advisors basic information about pre- and postnuptial agreements and answer questions about how these contracts can be negotiated to meet clients' needs.

One of the most critical issues addressed is how clients should (and shouldn’t) discuss terms of a pre- or postnuptial agreement with their partners. Another key issue is how the terms of prenuptial and postnuptial agreements can change over time. Some agreements, for instance, contain sunrise or sunset clauses which mean certain terms may only take effect if a certain situation occurs or they might cease when a milestone is reached.

Watch the Video

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"Live life as if everything is rigged in your favor."

—Rumi

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Divorce Without Court:

A More Peaceful Solution

eBook by Andrea Vacca

Do you assume divorce pits one spouse against the other, resulting in a nasty battle where no one actually wins and children are the collateral damage? When most people think of divorce, they envision a courtroom slugfest and a process that drags on for years, resulting in serious financial problems, unhappy children, and lifelong resentment towards their spouse. This is not how your divorce has to be.

I wrote “Divorce Without Court: A More Peaceful Solution” because I want everyone who is considering a divorce to know that it does not have to be a war and that mediation and the collaborative divorce process are much better options.

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At Vacca Family Law Group, we help clients dissolve their marriages without litigation. With discretion, elevated service and a flexible approach, we specialize in finding creative (and sometimes unconventional) solutions that are right for each client’s unique situation. Ready to move forward? Contact us .

Looking for a Speaker?

Andrea Vacca is available to speak to your group on the topics of financial issues in divorce, prenuptial agreements, collaborative divorce, mediation or other family law issues.