Types of Marital Property in an Albany Divorce
One of the biggest facets of a divorce is the distribution of property. For certain valuable pieces of property, such as real estate, businesses, or bank accounts, the division can be complicated and fiercely fought over. If you are looking for advice on how these assets should be divided, a skilled property division attorney could learn the specifics of your situation and fight for fair and equitable property distribution. Speak to an experienced attorney about the types of marital property in an Albany divorce.
Defining Types of Property
There are several types of property that are commonly involved with divorce proceedings in Albany, including:
- Real property including any piece of land owned by a person, as well as any appurtenances on that land, such as a house.
- Personal property, i.e. any other item that a person owns.
- Marital property or that which is presumed to be an asset or debt acquired or incurred during the marriage. Legally, it is considered to be owned by both spouses.
- Separate property which a piece of property that is owned by one spouse alone or that was acquired prior to the marriage. A separate property incurred during the marriage could be an inheritance that was kept in a separate account, lottery winnings, or personal injury settlement.
What Is Hybrid Property?
An example of hybrid property would be a type of real estate in which separate properties are used during the course of the marriage on the down payment of a house. This means a portion of the equity and the real property is considered separate while the rest – the remaining equity and interests in the property – is considered marital. The concept of hybrid property does not exist under New York law, so it is recommended that a person in Albany seek the help of a divorce lawyer to manage the distribution of “hybrid” property.
Dividing the Marital Home
The marital home is where the parties reside. If it is a house that they pay a mortgage on, and not an apartment or a leased house, then they are considered the owners and it is an asset subject to equitable distribution.
At the conclusion of the marriage, unless the parties agree to something different, the court will require that the marital residence be sold and the money split between the two. Alternatively, one spouse could essentially pay the other what their share of equity would be in order to buy them out. This would allow one of them to remain in the home. It is up to the two spouses to determine if they want that kind of an arrangement.
What if Only One Person’s Name Appears on the Title?
Jointly titled property can be held in both spouses’ names. That can include property such as a deed, a joint checking account, or a bank account. Any property acquired during the marriage is presumed to be marital property, irrespective of whose name appears on the title. For example, if a couple buys a house during the marriage but one of them has bad credit and the bank only gives a loan to their spouse, the deed and the mortgage for the house they purchased during the time of the marriage is considered marital property. Both spouses could be entitled to half of the equity of the house in the divorce because it is a marital asset. The same is true for a retirement account in the husband’s or wife’s name alone.
How a Privately-Held Business is Distributed
Another type of property that could be divided in Albany is a privately-held business, such as an LLC. A privately-held business is one that is not publicly traded.
A business is treated just like any other asset in that it is presumed to be a marital asset subject to equitable distribution. These can be challenging to put a value on, so an expert is commonly brought in to determine the value of the business. Anything not included in the marital agreement is likely to be retained by the spouse whose name is associated with the title. It is also important to ensure the opposing party is not hiding any assets during discovery.
Learn the Types of Property in an Albany Divorce from an Attorney
The rules of property division in a divorce can be difficult to understand. You should not have to lose out on assets because of these complications. Retain the services of local attorney to determine the types of marital property in an Albany divorce, so you can move into the next phase of your life in comfort and security. Call today to schedule a consultation.