Understanding New York’s Divorce Property Division Laws

NEW YORK, New York (April 24, 2025) — Navigating divorce in New York can be daunting, especially when it comes to dividing marital property. In a recent article titled “Is New York a Community Property State for Divorce?” Manhattan divorce lawyer Richard Roman Shum details how New York’s laws dictate asset and debt distribution.

Unlike community property states that divide assets equally, New York uses equitable distribution to divide property fairly, considering factors like the length of the marriage and each spouse’s financial situation. “New York now functions as an equitable distribution state, whereby the division of property in divorce proceedings is conducted with the aim of achieving fairness and justice for both parties involved,” Shum states in the article.

Divorce attorneys like Shum emphasize the importance of understanding equitable distribution, especially in cases involving commingled assets. For example, if one spouse receives an inheritance but deposits it into a joint account, that inheritance may lose its separate property status. Similarly, any improvements made to a home owned by one spouse before marriage could increase its value, causing that increase to be shared.

Shum also contrasts equitable distribution with the community property model found in states like California and Texas, explaining that New York courts consider the specific circumstances of each spouse when making decisions.

“The courts take into account factors such as age, health, and contributions to the marriage, which allows them to tailor settlements to meet the needs of both parties,” Shum adds.

Asset division in New York doesn’t just cover property but extends to marital debts. Generally, only debts incurred during the marriage are shared between spouses, while personal debts remain individual. This consideration is crucial as courts also reflect on each spouse’s financial standings post-divorce.

Shum references key cases that have shaped New York’s divorce practices, such as Grunfeld v. Grunfeld, emphasizing that equitable does not mean equal but rather fair under the circumstances. Another notable case, Majauskas v. Majauskas, confirmed that pension benefits earned during the marriage are considered marital property.

The legal framework for the division of property is outlined in the Domestic Relations Law, specifically Section 236(B)(5)(d), which gives judges substantial discretion in determining what constitutes marital and separate property.

Ultimately, whether dealing with a high-asset divorce or a case involving substantial commingled property, the expertise of a seasoned attorney can help protect a client’s financial future. The Law Office of Richard Roman Shum aims to support individuals through the divorce process by focusing on New York’s equitable distribution standards and advocating for fair outcomes.

For those facing divorce in New York, understanding the nuances of property division can be crucial in securing long-term financial stability and fairness, making legal guidance essential during this life transition.