How Equitable Distribution Works in High-Asset Divorces

In New York, the rule of equitable distribution governs how assets are divided when a marriage ends, meaning property is distributed fairly but not necessarily equally. New York courts consider many factors to achieve a just result, such as the length of the marriage, each spouse’s income and assets at the time of marriage, contributions to the household (including non-financial efforts like raising children) and the future financial needs of each party. For high-net-worth couples, whose assets may be measured in the millions, equitable distribution becomes exceptionally complex and often difficult.

Not every asset is subject to equitable distribution. Separate property — such as inheritances, gifts and assets owned prior to the marriage — generally remains with the original owner. However, separate property may become commingled with marital property. For instance, if inheritance money is deposited into a joint account or used to purchase a shared family residence, it may lose its separate status and be treated as marital property.

High-asset divorces involve diverse holdings far beyond a family home and simple bank accounts. They may include any or all of the following:

• Business interests and professional practices — Valuing a privately held company or medical or legal practice requires expert analysis.
• Investment portfolios — Stocks, bonds and investment funds must be given careful valuation.
• Retirement accounts and deferred compensation — Division of certain accounts may have tax consequences and pensions and compensation packages can be difficult to appraise.
• Real estate holdings — Multiple homes or investment properties complicate division, especially with fluctuating property values and complex ownership arrangements.

In cases where there are suspicions of hidden or undervalued assets, forensic accountants or investigators may be needed. These experts have the skills to uncover concealed wealth, trace complex transactions and ensure every asset is properly appraised. Tax professionals can advise on the consequences of dividing investments or retirement funds. And a skilled New York divorce attorney can help protect separate property, navigate legal pitfalls and negotiate fair settlements.

The attorneys at Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia, LLP work with clients to address the financial complications they experience after divorce. To discuss your legal issues and learn how we can help you, call us at 631-360-0400 or contact us online.