Equitable Distribution Process in Dutchess County, NY
How Is Property Divided in a Divorce in New York?
During the process of divorce, a separating couple will need to divide their marital property. In the state of New York, divorcing couples will be required to split and distribute marital property equitably. "Equitably" does not necessarily mean that property will be split equally between the two spouses; rather, it implies that the marital property will be divided fairly.
Unfortunately, what may seem fair or just to you may not be what a judge deems fair. Oftentimes, items that were brought into a marriage by one party end up being converted into marital property either intentionally or, in some cases, accidentally. Gray areas such as these can cause significant difficulties in the property distribution process, especially in cases centered on the division of a marital home, a family business, bank accounts, debts, or retirement plans.
How We Can Protect Your Assets
The courts will typically view your marriage as a partnership and will split your property based on this assumption. What you originally thought was yours may not be in the eyes of the law.
Marital property could include:
- Debts
- Pensions and retirement plans
- Stock options
- Real estate, including commercial real estate
- Marital home, car, possessions, or pets
If you are determined to ensure a fair and just distribution of your marital property, it will be crucial that you speak with our skilled lawyers. We maintain an impressive network of financial consultants and expert forensic accountants who can uncover hidden assets or private business funds to help you keep what is yours or access what should be shared with you.
Understanding the Value of Your Home
As part of the distribution process, the marital residence will need to be appraised. Unfortunately, the current status of the housing market can significantly impact the property distribution. The result can come as a rude shock to spouses who thought their homes were worth more or less than they are now.
Some couples will be left with unfavorable, yet necessary, options:
- Sell the home at its current value
- Buy out the opposing spouse
- Accept the buyout offer from the opposing spouse
We can provide you with legal counsel on the legal ramifications and implications of any of the choices that are available to your family. Having represented many families in the Beacon and Dutchess County areas, we know that the process of parting with a former spouse and your property can be incredibly difficult. We aren't afraid to take swift legal action to effectively help you make beneficial choices.
Business Valuation in divorce: Passive vs. Active
When a couple divorces and there is a family business, it will be necessary to determine the value of the business. If you own a business and you are headed toward divorce, we highly recommend calling upon a business valuation expert who will distinguish between the business’ “active” and “passive” appreciation.
Valuating the active and passive appreciation in a business is crucial and the difference matters a lot. Often, a spouse’s interest in a closely-held business exceeds the marital residence, so it must be given the attention it deserves. Not only is the business a valuable asset, but valuation can be a complex matter, especially if the spouse owned the business before the marriage.
In the context of divorce, the active appreciation of a business owned prior to a marriage is typically included in the marital estate, whereas the passive appreciation is left out. By “active appreciation,” we’re referring to a spouse’s active involvement in the business during the marriage.
What Constitutes ‘Active’ Appreciation?
Active involvement can mean a variety of things, such as buying a bigger building so the business can hire more employees and expand operations, developing new products and services that lead to the company’s growth, and other activities that contribute to the company’s appreciation.
On the other hand, “passive appreciation” has to do with an increase in value of a premarital asset due to external market conditions. For example, if a premarital asset, such as a piece of land increased in value during the marriage strictly because of market conditions, and not because of the owner spouse’s active involvement, the increased value would remain separate property and would strictly belong to the owner spouse.
If the same piece of premarital property tripled in value because the owner spouse developed the land (active appreciation) while he or she was married, the increased value during the marriage would be counted as marital property and subject to division under New York’s equitable division laws.
If you’re divorcing and one of you owned a business or real estate before the marriage, it’s critical that the active and passive appreciation are distinguished because it can make an enormous difference in the settlement. Having a knowledgeable attorney and business valuation expert can help protect your interests throughout the divorce process.
Call the Law Office of Dennis R. Vetrano, Jr., LLC Today
At the Law Office of Dennis R. Vetrano, Jr., LLC, we are dedicated to the practice of family and matrimonial law. Each member of our firm has acquired the necessary skills and resources to help guide your case to an optimal and fair resolution.
Contact our lawyers if you wish to schedule a consultation to learn more about your options.
CLIENT TESTIMONIALS
READ WHAT PAST CLIENTS HAD TO SAY
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"Using the Law Office of Dennis R. Vetrano to handle my divorce was the best decision I could have made."
I want to say that using the Law Office of Dennis R. Vetrano to handle my divorce was the best decision I could have made. Kristen explained everything up front in terms that I could understand, and she put me at ease from the moment we met. Erika kept me abreast of everything that was happening throughout the whole process. She answered all my questions quickly and again in a way that I could understand. I would recommend the Law Office of Dennis R. Vetrano to anyone.
- David B. -
"Unfortunately some of the hardest times in our lives we need an attorney to help guide us through such emotional and uncertain and scary period"Unfortunately some of the hardest times in our lives we need an attorney to help guide us through such emotional and uncertain and scary period. Choosing the best attorney can take away some of the fear and anxiety Dennis and his absolutely amazing team have held my hand and calmed my nerves on more than one occasion Stacey is always on the other end of the phone to reassure me that it is a process and it will be ok.I have found such comfort in Dennis his knowledge and strong confidence that he and his team have it all under control allows me to focus on myself and my children while they handle my case. I highly recommend this firm!- Jennifer Garofolo
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"I am extremely thankful for having received the best representation from my attorney Kristen D. Farris for a temporary order of protection case against my soon to be ex-husband."
I am extremely thankful for having received the best representation from my attorney Kristen D. Farris for a temporary order of protection case against my soon to be ex-husband. Everything went so smooth with her amazing expertise and professionalism. In the court, she took charge right away and everything was just so well. I was so relieved! The outcome of the case was perfect and the case settled without any issues. I had no chance to stress! Finally, the office staff was so friendly and the communication, which was mostly through e-mail, was perfect. I am looking forward to working with Kristen with the next steps of getting a divorce. God answered my prayer when I asked for a great attorney :) I was so nervous but thankfully everything went so well!!!
- Rosa Gonzalez -
"Kristen and Erika were wonderful to work with. Very professional, yet compassionate. They thoroughly explained everything in understandable terms."
Kristen and Erika were wonderful to work with. Very professional, yet compassionate. They thoroughly explained everything in understandable terms. Both Kristen and Erika were prompt in all communications and kept me informed throughout.
- Rebecca T. -
"Tough, gracious, generous, and committed describe Kristen’s qualities as my attorney."
Tough, gracious, generous, and committed describe Kristen’s qualities as my attorney. And much thanks to the paralegal team as well. Their combined experience provided prompt support whenever I had any questions and helped talk me through my situation and to provide clarity. I can’t thank Kristen and her team enough for the all hard work and kindness through the process.
- T. Curtis-Verderosa -
"Christal Prinz is OUTSTANDING! She has compassion and a wealth of knowledge about the law."
Christal Prinz is OUTSTANDING! She has compassion and a wealth of knowledge about the law. She has a good common-sense approach as well. It was a delight to work with her considering the circumstances and nuances of my case and the law.
- A.P. -
"I am so thankful I found this law office to handle my divorce. Kristen was a pleasure to deal with and handled my divorce flawlessly. Communication was always very fast, and always very clear."
I am so thankful I found this law office to handle my divorce. Kristen was a pleasure to deal with and handled my divorce flawlessly. Communication was always very fast, and always very clear. I highly recommend! Couldn’t have been handled better. Thank you.
- Claudia Franciosa -
"The guidance and knowledge they provided was immeasurable."I am so grateful for the wonderful team that assisted me through one of the most difficult times of my life. The guidance and knowledge they provided was immeasurable.- Jessica Conklin