-Dividing commingled assets during a divorce can be one of the most challenging aspects of the process. You may feel overwhelmed by the complexity of identifying what belongs to you and your spouse, especially when finances and property intertwine. The laws surrounding equitable distribution in New York can add stress if you’re not fully informed about your rights and responsibilities.
Examples of How Assets Can Become Commingled
Here are some common scenarios of how assets can become commingled
- Joint bank accounts
- Shared investments
- Real estate property
- Retirement accounts
- Business assets
Methods for Dividing Commingled Assets
Here are some methods available to you
- Identification of Separate vs. Marital Assets
The first step is identifying which assets one spouse owns before marriage or received as a gift/inheritance and which are acquired during the marriage.
- Tracing Contributions
Once you’ve identified the assets, tracing each spouse’s contributions can help clarify ownership. This involves documenting who contributed what to each asset, including deposits made into joint accounts or investments. Financial records, bank statements, and receipts can serve as evidence.
- Valuation of Assets
Accurately valuing commingled assets is critical to ensure a fair division. This may require professional appraisals, particularly for real estate, businesses, or valuable collectibles. Understanding the current market value of these assets will help you negotiate a fair settlement.
Resolving Disagreements on the Separation of Commingled Assets
Disagreements on how to separate commingled assets can complicate the divorce process, leading to stress and prolonged negotiations. Understanding how to resolve these conflicts can help you navigate these challenges effectively. Here are some common approaches:
- Mediation
Mediation involves a neutral third-party facilitating discussions between you and your spouse. This method can help you explore options for dividing commingled assets in a constructive environment.
- Collaborative Divorce
A collaborative divorce involves both parties working with their attorneys and other professionals to reach an agreement. This method focuses on cooperation rather than confrontation, fostering a more amicable resolution to asset division.
- Arbitration
Arbitration is a private dispute resolution process where both parties agree to present their case to an impartial arbitrator. This method offers a more structured approach than mediation, as the arbitrator makes a binding decision based on the evidence and arguments presented. Arbitration allows for a quicker resolution than traditional court litigation.
- Court Litigation
In litigation, both parties present their evidence to a judge who evaluates the facts by New York’s equitable distribution laws. While litigation can lead to a legally binding resolution, it also means relinquishing control over the outcome, as the judge’s decision is final. Moreover, court proceedings are public, which may expose personal and financial information to scrutiny.
- Post-Divorce Modifications
In some cases, issues related to commingled assets may arise after the divorce is finalized. If new information comes to light or circumstances change, seeking modifications through the court may be necessary.
Are you ready to take the next step in dividing your commingled assets? Don’t navigate this complex process alone. You may download the New York marital separation forms and templates at forms.legal to simplify your asset division and help you stay organized. These resources will guide you through each step, ensuring you have the tools you need for a smoother transition.