When assets are divided between spouses during a divorce in the state of New York, it is not always an easy process. This is because neither party usually wants to give up the things they cherish. Oftentimes, one of the most valuable assets that is held within a marriage is a family home. Spouses facing these situations tend to wonder how this will be divided amongst them in the proceedings. When houses are considered marital property, they are subject to equitable distribution. Continue reading below to learn more about how this is done.
When is a House Considered Marital Property?
An asset is deemed as marital property when it is purchased or acquired during the marriage. This means that if a couple buys a home together after they are officially married, it is property that can be divided in a divorce. However, if one spouse owned the property before the marriage and never put their partner’s name on the title, it is considered separate property. Assets that are separate property are not subject to equitable distribution and therefore will not be divided in a divorce.
How is a House Distributed Equitably?
When a house is subject to equitable distribution in New York, there are three different ways it can be divided between both spouses. This can include the following:
- Arrange a buyout. One spouse can buy out the other’s equity in the home. The buying spouse can refinance the loan so that the selling spouse can have their share of the equity. When this happens, the loan will be in the buying spouse’s name only.
- Selling the house. As most spouses cannot afford to buy out the other and keep up with the costs of the home on their own, it can be sold and the proceeds can be divided equally or unequally.
- Continue to co-own the house. This is a common option when spouses have children together, as they can benefit from staying in the family home home. In these situations, one spouse usually moves out and waits until the house is sold.
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Matters of divorce and family law should be navigated with the guidance of an experienced attorney. If you need strong legal representation regarding matters of divorce, family law, and estate law, contact the Law Offices of Susan A. Kassel, P.C. to schedule a consultation today.