One of the biggest concerns that comes up during divorce is about who gets to keep the marital home. This property often holds significant emotional and financial value for both parties.
In New York, the process of determining what happens to the home can involve negotiation or mediation between the spouses. However, if they cannot reach an agreement, the court may step in to decide based on equitable distribution principles.
Understanding marital property and equitable distribution
In New York, marital property includes assets acquired during the marriage. This typically means the marital home is subject to division if purchased after tying the knot. Even homes owned before marriage may partially count as marital property if marital funds were used for maintenance, improvements or mortgage payments.
When deciding the fate of the marital home, the court examines various factors:
- The length of the marriage
- Each spouse’s financial circumstances, including their income and earning potential
- Contributions to the home’s upkeep and mortgage
- Child custody arrangements and the need for stability
By considering these factors, the court aims to distribute the marital property in a way that is equitable and reflects both spouses’ contributions and future needs.
How does the court divide the marital property?
During a divorce, the court may decide on the following options for the marital home:
- Selling the home: The court may order the sale of the home and the division of the proceeds between the spouses. This decision often depends on factors like current market conditions and the financial needs of both parties.
- Awarding the home to one spouse: The court may grant ownership of the home to one spouse. The spouse keeping the home might need to compensate the other with other assets, such as savings or retirement accounts, to ensure equitable distribution.
- Ordering co-ownership: In some cases, the court might allow both spouses to retain ownership temporarily. This arrangement can be beneficial for maintaining stability for children or waiting for improved market conditions before selling.
Spouses can also negotiate an agreement regarding the marital home. Options include mediation or other alternative dispute resolution (ADR) methods. However, for an agreement to be legally binding, the court must still document and approve it.
Clarify your options
If you’re facing decisions about the marital home during a divorce, professional legal counsel can be invaluable. An attorney can offer insights specific to your situation and guide you through the process.
