Property Distribution

Understanding your finances is the first step in equitable property distribution.

The concept of “Equitable Distribution” sounds straight-forward but often it isn’t.

Marital property is distributed “equitably,” not “equally” in divorce. This often leads to disputes over the meaning of equitable. Courts consider factors like the length of the marriage, each spouse’s income, and future financial needs when determining a fair division. Before property can be divided, however, you must determine what is included as marital property and how much it is worth. Some types of property can be harder to value than others. People think only of real estate property. They forget other assets such as cars, stock and investment accounts, and antique collections. Our attorneys’ strong business background and our firm’s experience in handling intricate financial issues uniquely positions us to help you distribute assets fairly without devaluing or unduly taxing their value.

How does the date of acquisition affect property division?

When you acquired the property matters. When a divorce occurs, property is put into two categories: separate property and marital property. Knowing when an asset was acquired, helps to avoid the misclassification of separate property assets as marital property (which makes them subject to distribution).

• Separate property is property that is either acquired before the parties’ wedding date or through inheritance during the marriage. Absent specific circumstances, separate property exclusively belongs to the spouse owning the property.
• Marital property is property that is acquired after the parties’ wedding date. This includes income earned and assets purchased during the marriage, regardless of whose name is on the title. When a couple divorces, most, if not all, marital property is divided between the parties. This can create complications when the property includes:
  • complex and closely held private companies
  • real estate
  • family businesses
  • financial services firms
  • stock options
  • restricted stock units
  • deferred compensation plans
  • trusts and deferred tax-planning strategies

Let’s talk about your concerns regarding your asset base in the event of divorce.

Our broad expertise and extensive experience with all types of assets enables us to be strong negotiators on your behalf. We are skilled at working with you to determine how to divide your property fairly and with as minimal an overall financial impact as possible.We seek to find the best solutions for clients who want to move forward in their lives. Please contact our office to learn how we can help you resolve your property disputes, so you can put your divorce behind you.

Frequently Asked Questions About Property Distribution

Q. What factors do courts consider when dividing marital property?

A. Courts consider a range of factors when dividing marital property to ensure the division is equitable. These factors often include the length of the marriage, the income and earning potential of each spouse, contributions to the household (both financial and non-financial), the needs of each spouse, and any agreements made prior to or during the marriage, such as prenuptial agreements. Each case is unique, and the specific circumstances will heavily influence the court’s decision.

Q. How are stock options divided in a divorce?

A. Stock options that vest during the marriage are generally considered marital property. Courts often use a formula to determine the marital portion based on when the options were granted and when they vest.

Q. Does equitable distribution mean a 50/50 split?

A. No, equitable distribution means a fair division, not necessarily an equal one. A judge will look at various factors, such as each spouse’s financial situation and contributions to the marriage, to determine a fair split, which could be 50/50, 60/40, or another ratio depending upon each party’s circumstances.