What property is left out of divorce division?
Dividing marital property is often one of the most complex and confusing parts of the divorce process, with many couples dreading having to deal with it.
The final settlement can be reached through mediation or through the court. Regardless of the option selected, it is a good idea to know how divisions by the court typically work.
What is separate property?
The New York State Senate discusses property division within divorce scenarios. First, there is separate property. This property does not have to be divided during a divorce. By New York law, separate property can include things like personal injury compensation, property owned before the marriage, inheritance money and gifts given by a third party.
Anything that a person bought via inheritance money or money that they got from the increase in property value of a different property also belongs to the individual.
Keeping separate property separated
In order to ensure that separate property stays separate, it is important to keep it isolated from any marital property. As an example, individuals should keep all separate property titles in their own name, rather than adding their spouse’s name to it. Doing so makes it marital property, and thus it is subject to division during divorce.
Inheritance money should also be kept separately and not mixed with marital accounts. Depositing inheritance money into a joint bank account or buying property with both spouses’ names on the title will revoke the separate property status and make it joint property.
Keeping this information in mind can help a person to avoid having to divide their property up in the future.