The fourth major pillar of any divorce action is the distribution of property or equitable distribution. The cornerstone for understanding equitable distribution is the phrase ICED-T. That is, Identify, Collect, Evaluate, Distribute and Tax consequences. By following this simple formula, one can understand the most complex equitable distribution case.
The equitable distribution statute took effect in July, 1980 and has evolved extensively since that time. Essentially, all "marital" property is subject to distribution except for "separate property." Separate property is generally defined as inheritances, property owned prior to the marriage, gifts from non-spouses and income received in compensation for a personal injury. In addition, appreciation of separate property is considered separate. However, extensive case law has eroded this concept so that a large portion of appreciated separate property is subject to distribution.
An extensive amount of litigation involves evaluating the assets and determining what percentage each party should receive of that asset. Property (assets) encompass virtually everything, including pensions, 401K retirement plans, the value of a professional license, the value of a professional business, business interests, the value of a special skill as well as the commonly thought of assets such as bank accounts, real estate, and stocks and bonds.
The interesting aspect of equitable distribution is that there cannot be a distribution of property without a divorce or pursuant to a valid separation agreement. As a result, an extensive amount of litigation involving the grounds for divorce involves parties who, for one reason or another, do not wish to have property distributed and therefore are opposing the underlying grounds of the divorce in the first place.
The use of experts is widely utilized in this area including tax accountants, CPAs, business evaluators, real estate appraisers and other similar experts. The cost of these experts can make the cost of litigating an equitable distribution case quite extensive.
Attorney Alan L. Offen is also ready to assist clients with Family Law-related issues, such as:
Contact the Law Offices of Alan L. Offen online today or call (585) 200-3903 or (866) 869-3164 to arrange an informative consultation Mr. Offen will meet with you personally to learn about your case.
