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Law Office of Richard Roman Shum, Esq., PLLC.
Dividing property during a divorce can determine your financial stability for years to come. If you are going through a divorce in Manhattan, New York law does not split assets equally between spouses. Instead, courts follow an equitable distribution model, which means marital property is divided based on what a judge considers fair after weighing more than a dozen statutory factors. Your home, retirement savings, business interests, and even debts accumulated during the marriage are all subject to division. However, separate property, such as assets you owned before the marriage or received as an inheritance, generally stays with the original owner.
Manhattan property division attorney Richard Roman Shum has represented individuals and families throughout New York City in complex property division matters, from co-op apartments and business valuations to retirement account transfers requiring a Qualified Domestic Relations Order (QDRO). Our firm works with clients to identify, classify, value, and divide assets in a way that reflects their actual contributions and future needs.
This guide explains how New York’s equitable distribution law works, what counts as marital versus separate property, the factors courts consider when dividing assets, and how to protect your financial interests during a Manhattan divorce. Call the Law Office of Richard Roman Shum, Esq. at (646) 259-3416 for a free consultation.
“In both cases attorney Shum was great to work with. Navigating both of these situations was, at times, confusing. Attorney Shum made the details of both matters easy for me to comprehend.”
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New York is an equitable distribution state, not a community property state. This distinction matters. In community property states, marital assets are generally split 50/50. Under New York Domestic Relations Law (DRL) Section 236(B), courts divide marital property in a way they consider fair, which may or may not result in an equal split.
The equitable distribution process follows a structured approach. First, the court identifies all assets and debts. Then it classifies each one as marital property or separate property. After classification, assets are valued, often with the help of appraisers or forensic accountants. Finally, the court applies the statutory factors set forth in DRL Section 236(B)(5)(d) to determine how to divide the marital estate.
In longer marriages, courts may divide marital property more evenly when both spouses made significant contributions to the marriage. But equitable distribution does not automatically mean a 50/50 split, and there is no fixed seven-year rule in the statute.
The firm can evaluate how equitable distribution applies to your Manhattan case and help you prepare a strategy that protects your financial interests. Call (646) 259-3416 to schedule a consultation.
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Under DRL § 236(B)(1)(c), marital property generally includes property acquired by either or both spouses during the marriage and before the execution of a separation agreement or the commencement of a matrimonial action.
Marital property in a Manhattan divorce can include real estate purchased during the marriage, such as co-op apartments, condominiums, or investment properties. Bank accounts, brokerage accounts, stock options, and retirement contributions made during the marriage all fall under the marital property umbrella. Businesses started or grown during the marriage are also subject to division, along with vehicles, furniture, art, and other personal property.
Even less obvious assets may qualify. Frequent flier miles, country club memberships, deferred compensation, and bonuses earned during the marriage can all be classified as marital property. Debts are included as well. Credit card balances, mortgages, student loans taken on during the marriage, and other liabilities may be divided between spouses.
Separate property generally belongs to one spouse alone and is not subject to division. Under New York law, separate property includes assets owned before the marriage, inheritances received by one spouse (even during the marriage), gifts from someone other than the other spouse, personal injury settlement proceeds, and anything designated as separate property in a valid prenuptial or postnuptial agreement.
However, separate property can lose its protected status. If you deposit an inheritance into a joint bank account or use premarital savings to renovate a jointly owned home, that separate property may become “commingled” with marital assets. Once commingled, the burden falls on the spouse claiming the asset is separate to prove its origins through clear and convincing evidence.
Key Takeaway: Marital property in New York covers nearly all assets and debts acquired during the marriage, regardless of title. Separate property, including premarital assets and inheritances, is generally protected from division, but commingling can change that classification. Documentation of asset origins is critical.
Contact the firm to discuss how your Manhattan assets should be classified. Call (646) 259-3416.
DRL Section 236(B)(5)(d) lists the factors a New York court must evaluate when determining how to divide marital property.
| Factor | What the Court Examines |
|---|---|
| Income and property at time of marriage and divorce | Each spouse's financial standing at the start and end of the marriage |
| Duration of the marriage and age/health of both spouses | Longer marriages typically result in more equal divisions; health issues may increase a spouse's share |
| Need of custodial parent for the marital home | Stability for children, including whether the custodial parent should retain the residence |
| Loss of inheritance and pension rights | How divorce affects each spouse's expected benefits |
| Loss of health insurance benefits | Cost of obtaining new coverage after divorce |
| Award of spousal maintenance | Whether maintenance payments offset or supplement property distribution |
| Contributions of the non-titled spouse | Homemaking, child-rearing, and career support count as contributions |
| Liquid or non-liquid character of assets | Whether assets can be easily converted to cash or require special handling |
| Future financial circumstances | Each spouse's earning potential and long-term financial outlook |
| Tax consequences of distribution | How transferring or selling assets will affect each spouse's tax obligations |
| Wasteful dissipation of assets | Whether one spouse recklessly spent, hid, or destroyed marital property |
| Transfers made in contemplation of divorce | Attempts to hide or devalue assets before or during proceedings |
| Domestic violence | The nature, extent, duration, and impact of any domestic violence committed by one spouse against the other |
| Any other just and proper factor | Catch-all provision giving the court flexibility |
A judge must set forth the specific factors considered and the reasons for the decision in the final judgment. This requirement, built into DRL Section 236(B)(5)(g), means courts cannot simply divide assets without explanation.
Key Takeaway: New York courts must weigh at least 13 statutory factors before dividing marital property. Non-monetary contributions like homemaking and child-rearing carry real weight, and courts must explain their reasoning in writing.
Your Manhattan property division attorney can help you build a case that highlights the factors most favorable to your situation. Call the Law Office of Richard Roman Shum, Esq. at (646) 259-3416 to learn more.
“Attorney Richard Shum assisted my family and I with a very difficult landlord. At a time of a lot of concern and uncertainty, Mr. Shum was there for us every inch of the way, his confidence and vast knowledge of the law, together with his passion for it and for helping people, provided us the serenity to go on about our life, while he took care of they daunting matter. At the end we reached an agreement only Atterney Shum could achieve. Since I recommended his service to any friends that is in need of help with legal matters, from Landlord/Tenant to family court, and in every case I receive a thank you call from said friends, following the successful outcome he provided. So, as I say to my friends, if you need an Attorney that will fight for you, and not stress you out, call this guy. you will thank me.”
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Manhattan divorces frequently involve assets that require careful valuation and division. Real estate in one of the world’s most expensive markets, business interests, professional practices, and substantial investment portfolios all present unique challenges.
Real estate is often the most valuable marital asset in a Manhattan divorce. Whether you own a co-op apartment, a condominium, or investment properties, each requires a current market valuation that accounts for neighborhood trends, building assessments, and the property’s condition. The New York County Supreme Court handles contested divorce proceedings in Manhattan, and judges routinely address disputes over the family home.
Options for dividing real estate include selling the property and splitting the proceeds, one spouse buying out the other’s interest, or continuing shared ownership temporarily for the benefit of minor children. Tax implications, including capital gains liability, must be factored into any arrangement.
If either spouse owns a business or professional practice, determining its value is one of the most important aspects of property division. Valuation may require forensic accountants who analyze income streams, tangible assets, accounts receivable, and intangible factors such as goodwill.
New York law distinguishes between two types of goodwill. Enterprise goodwill (the value tied to the business’s reputation, customer base, and systems) is a marital asset subject to division. Personal goodwill (the value tied to the individual owner’s skills and relationships) is generally not divisible. This distinction can mean a difference of hundreds of thousands of dollars, making an accurate appraisal essential.
Contributions to retirement accounts made during the marriage are marital property subject to equitable distribution. Dividing these accounts often requires a Qualified Domestic Relations Order (QDRO), a legal document that directs a retirement plan administrator to transfer a portion of one spouse’s benefits to the other.
The landmark New York Court of Appeals case Majauskas v. Majauskas, 61 N.Y.2d 481 (1984) established the formula still used today for dividing defined benefit pension plans. Under the Majauskas formula, the non-participant spouse receives 50% of the benefits multiplied by a fraction: the numerator is the number of years the participant earned benefits during the marriage, and the denominator is the total years of service.
Key Takeaway: Manhattan divorces often involve real estate, businesses, and retirement accounts that require appraisals, forensic accountants, and legal instruments like QDROs. The distinction between enterprise goodwill and personal goodwill can significantly change the value of a business subject to division.
Contact the firm to discuss how high-value assets in your Manhattan divorce should be valued and divided. Call (646) 259-3416.
Prenuptial and postnuptial agreements can significantly change the way property is divided in a Manhattan divorce. These contracts allow couples to define in advance which assets are marital and which are separate, potentially overriding the default rules of equitable distribution.
A prenuptial agreement (prenup) is signed before the marriage. A postnuptial agreement (postnup) is created during the marriage, often when circumstances change, such as when one spouse starts a business or receives a large inheritance. Both types of agreements must meet specific requirements under New York law to be enforceable.
For a marital agreement to be enforceable in a matrimonial action, it generally must be in writing, subscribed by the parties, and properly acknowledged. Courts also scrutinize whether the agreement was voluntary and may set it aside in cases involving fraud, duress, overreaching, or unconscionability.
When valid, these agreements can simplify property division considerably. Instead of litigating over the classification and value of every asset, the terms of the agreement control. Your attorney can review your existing agreement or help you understand how it may affect your property division case. Contact the Manhattan office at (646) 259-3416.
Richard Roman Shum is a lifelong New Yorker and resident of the Lower East Side who has represented individuals and families in Manhattan for over 15 years. He holds degrees from Suffolk University School of Law, Washington University in St. Louis, and Emerson College. His practice focuses on family law and matrimonial matters, including property division, divorce, child custody, child support, spousal support, and prenuptial agreements.
As a father and a longtime member of the Lower East Side community, Richard Roman Shum takes a pragmatic and client-focused approach to every case. He works with each client to develop an individualized strategy, whether the case calls for negotiation, mediation, or courtroom litigation. His calm and focused demeanor helps clients move through difficult proceedings with clarity, and his understanding of New York’s equitable distribution laws allows him to identify and address complex asset issues before they become larger problems.
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Complete and honest financial disclosure is not optional in a New York divorce. Both spouses are legally required to provide a full accounting of their assets, income, and debts. This requirement serves as the foundation of a fair property division.
Each spouse must file a Statement of Net Worth with the New York County Supreme Court, listing:
Failure to disclose assets can result in serious consequences. A court may impose sanctions, award attorney’s fees to the other spouse, or adjust the property division to account for the concealment. In some cases, a spouse who discovers hidden assets after the divorce is finalized can petition the court to reopen the equitable distribution determination.
Key Takeaway: New York law requires full financial disclosure from both spouses during a divorce. Hiding assets can lead to penalties, attorney’s fee awards, and an unfavorable property division. Transparency protects both parties and helps the court reach a genuinely fair outcome.
If you suspect your spouse may be hiding assets during your Manhattan divorce, the firm can work with forensic accountants and financial analysts to uncover the full marital estate. Call (646) 259-3416.
Taking early action during a divorce can make a significant difference in how property is ultimately divided. While you cannot hide or dissipate marital assets, there are legitimate steps you can take to protect your financial interests.
New York’s automatic orders, which take effect when a divorce action is filed, prohibit both spouses from transferring, hiding, or wasting marital property. Violating these orders can result in penalties and an unfavorable property division outcome.
Key Takeaway: In a New York divorce, the automatic orders bind the plaintiff upon filing and the defendant upon service of the summons and orders, and they restrict either party from transferring or wasting marital assets without consent or court order.
The firm represents clients throughout Manhattan and New York City in property division cases. Call (646) 259-3416 for guidance on how to protect your assets.
Not every property division dispute needs to go to trial. Mediation, collaborative law, and direct negotiation between attorneys offer alternatives that can save time, reduce costs, and give both spouses more control over the outcome.
In mediation, a neutral third party helps spouses reach an agreement on how to divide assets and debts. The mediator does not make decisions but facilitates discussion and helps both sides evaluate their options. Collaborative law takes a similar approach, with each spouse represented by their own attorney. All parties agree in advance to resolve the case without litigation.
Direct negotiation between attorneys is often the most efficient path. Each attorney advocates for their client’s interests while working toward a settlement that both sides can accept. If the parties reach an agreement, the terms are incorporated into a separation agreement that becomes part of the final divorce judgment.
However, negotiation requires both spouses to participate in good faith and provide full financial disclosure. When one spouse refuses to cooperate, hides assets, or refuses reasonable terms, litigation may become necessary. In those cases, the New York County Supreme Court will decide how marital property is divided after hearing evidence from both sides.
We handle property division through negotiation, mediation, and litigation in Manhattan. Call (646) 259-3416 to get started.
Property division in a divorce carries tax implications that can significantly affect the actual value of what each spouse receives. Failing to account for taxes can turn what appears to be a fair division into a lopsided one.
Transfers of property between spouses as part of a divorce settlement are generally not taxable events under federal law. However, the spouse who receives an asset also takes on its tax basis, meaning they may owe capital gains taxes when the asset is eventually sold. A Manhattan co-op apartment with substantial appreciation, for example, could carry a large capital gains tax liability that reduces its real value.
Retirement account distributions through a QDRO are also subject to specific tax rules. If funds are rolled into an Individual Retirement Account (IRA), taxes are deferred until withdrawal. Tax treatment depends on the type of plan and how the transfer is structured. QDRO distributions from qualified plans have special federal tax rules, and IRA transfers incident to divorce follow different rules.
Spousal maintenance (alimony) payments are no longer deductible for the paying spouse under federal tax law for divorces finalized after December 31, 2018. This change under the Tax Cuts and Jobs Act affects how property division and maintenance interact, since the paying spouse can no longer offset maintenance costs through a tax deduction.
Key Takeaway: Tax consequences can dramatically change the real value of assets divided in a Manhattan divorce. Capital gains on real estate, tax basis on transferred assets, and the non-deductibility of spousal maintenance for the payor should all be factored into any property division agreement.
Contact the firm to discuss how taxes may affect your Manhattan property division case. Call (646) 259-3416.
The Law Office of Richard Roman Shum, Esq. represents clients in property division and family law matters throughout Manhattan and New York City, serving individuals and families in neighborhoods including the Lower East Side, Midtown, Upper East Side, Upper West Side, Tribeca, SoHo, Chelsea, Greenwich Village, Harlem, Washington Heights, and Financial District. The firm also serves clients in Brooklyn, Queens, the Bronx, and Staten Island.
Property division cases in Manhattan are heard at the New York County Supreme Court at 60 Centre Street. The firm regularly appears before the court and understands the procedures, filing requirements, and judicial expectations that apply to equitable distribution proceedings in New York County.
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Law Office of Richard Roman Shum, Esq., PLLC.
Dividing the assets accumulated during a marriage often presents difficult financial and legal questions. You may be concerned about your entitlements, the future of a home or business, and financial disclosures. Getting clear answers to these questions early in the process is essential for making informed, strategic decisions.
Richard Roman Shum has represented families across Manhattan and New York City in property division cases for over 15 years. From contested proceedings at the New York County Supreme Court to negotiated settlements involving complex assets, we handle every stage of the equitable distribution process. Whether your case involves a co-op apartment, a family business, retirement accounts, or hidden assets, our firm can provide the tailored guidance you need. Learn more about the firm’s divorce and family law services.
Call the Law Office of Richard Roman Shum, Esq. at (646) 259-3416 to schedule a free consultation. The office is located at 20 Clinton Street, Suite 5D, New York, NY 10002, and serves clients across all five boroughs and the surrounding areas.
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Marital property includes everything either spouse earned or acquired during the marriage, regardless of whose name is on the title. Separate property includes assets owned before the marriage, inheritances, gifts from third parties, and personal injury awards. If separate property is mixed with marital funds, it may be reclassified as marital property.
No. New York follows equitable distribution, which means property is divided fairly but not necessarily equally. Courts consider more than a dozen factors, including each spouse’s income, the length of the marriage, and contributions to the marital estate.
Retirement account contributions made during the marriage are marital property. Dividing them typically requires a Qualified Domestic Relations Order (QDRO), which directs the plan administrator to transfer a portion of one spouse’s benefits to the other. Defined benefit pension plans are generally divided using the Majauskas formula established by the New York Court of Appeals.
Both spouses are legally required to provide full financial disclosure during a New York divorce. Automatic orders take effect upon filing, prohibiting the transfer, concealment, or destruction of marital assets. A forensic accountant can help uncover hidden assets, and courts may impose penalties on a spouse who fails to disclose.
Business valuation typically requires a forensic accountant or professional appraiser who examines income, assets, liabilities, and goodwill. New York courts distinguish between enterprise goodwill, which is divisible, and personal goodwill, which generally is not. The method of valuation, such as the income approach, market approach, or asset-based approach, can significantly affect the final number.
The court may order the home sold and the proceeds divided, allow one spouse to buy out the other’s share, or grant temporary exclusive occupancy to the custodial parent. Factors include the needs of minor children, each spouse’s financial situation, and the tax consequences of selling the property.
The timeline depends on the complexity of the assets involved and whether the spouses can reach an agreement. Uncontested divorces with straightforward assets may be resolved in a few months. Contested cases involving business valuations, hidden assets, or multiple properties can take a year or longer.
While it is possible to represent yourself, property division involves complex legal and financial issues. Misclassifying an asset, undervaluing a business, or failing to account for tax consequences can cost you significantly. An attorney can help identify all marital property, obtain accurate valuations, and advocate for a fair distribution.