High-net-worth divorces often involve more property, more money, and more issues to sort out than a typical divorce case. For example, these cases might include business interests, real estate, investments, deferred compensation, restricted stock units (RSUs) and retirement accounts.
New York uses a process called equitable distribution to divide marital property in all divorce cases. This means the court tries to divide marital property fairly but not necessarily equally. The court looks at each spouse’s role in the marriage, their future needs, and other details to decide what’s fair.
Because high-net-worth divorces involve more assets and more complex holdings, people often work with divorce lawyers to understand what’s at stake and how to approach the division process.
Marital vs. Separate Property
New York law divides property into two main types: marital and separate. Marital property includes everything either spouse earns or buys during the marriage. It doesn’t necessarily matter whose name is on the account or deed. Separate property includes assets one spouse owned before the marriage or received as a gift or inheritance in their name only. If either spouse used separate property to buy something new, that new item might still count as separate unless the other spouse helped to pay for it or maintain it. The court usually doesn’t divide separate property, so knowing how property gets classified matters.
How Equitable Distribution Works
New York courts divide marital property using equitable distribution principles. In this context, “equitable” means fair, not equal. The court starts the equitable distribution process by identifying what counts as marital property. Then, it looks at each spouse’s income, age, health, and other factors to decide what is fair. Judges also consider factors like future earning power, property value, and who helped build or grow certain assets. For example, if one spouse built a business while the other spouse stayed home to raise kids, the court might give more of that business’s value to the spouse who actually built the business.. The point is that everything may not be equally divided particularly when it comes to a business asset.
Valuing High-Value and Complex Assets
High-net-worth divorces often include property that takes time and skill to value, such as business interests, stocks, investment accounts, retirement savings, and real estate. Some high-net-worth couples also own fine art, jewelry, or collectibles. Before the court can divide anything, it must determine what those assets are worth, which often means hiring appraisers, accountants, or other professionals. For business owners, the process might involve reviewing years of records.. Accurate valuations help both spouses understand what they’re dealing with and what a fair split might look like.
Distributive Awards as a Tool for Fairness
Sometimes, it’s just not possible or practical to divide certain assets. For instance, a business might lose value if two people share it, or one spouse might need to stay in the marital home with the children. In those cases, the court can use a distributive award to keep things fair. This involves one spouse keeping the property and the other getting cash or something else of value to make up for it.
The Impact of Prenuptial and Postnuptial Agreements
Prenuptial and postnuptial agreements can shape how property gets divided in high-net-worth divorces. Couples use these agreements to decide what counts as separate property, who keeps what, and whether anyone gets maintenance (alimony) payments later. Courts will usually follow the terms of these agreements provided that they are drafted correctly. If you and your spouse have a prenup or postnup, a New York divorce attorney can help you understand how it might affect property division in your high-net-worth divorce case.
Contact a New York Divorce Lawyer Now
If you’re dealing with a high-net-worth divorce in New York, Lisa Zeiderman, Esq., can help. Lisa Zeiderman has extensive experience helping clients understand their rights and make informed decisions about their financial futures. Contact Lisa today for an initial consultation to learn how she can help you.