Rochester, NY asked in Divorce, Family Law and Real Estate Law for New York

Q: Plaintiff seeks half of house equity post-divorce, name added to title years prior.

I am involved in a situation where the plaintiff, after filing for divorce, wants half of the equity in a house I own. Her name was added to the property title six years before she left. For four years leading up to the divorce, the plaintiff managed her income separately and continued to withdraw funds from our joint account. There was no pre-nuptial agreement, and she is now claiming half of the property's equity. How should this be approached legally, considering the financial and legal implications?

2 Lawyer Answers
Howard E. Knispel
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Answered

A: Regardless of when the property was purchased, the act of adding your spouse to the deed is called transmutation, thus making it marital property. This does not mean it would be divided equally, but equitably. The distribution percentage depends on the pre-marital credit you might be entitled to. You need to speak to your attorney about investigating that credit.

James L. Arrasmith
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Answered

A: In your case, the plaintiff’s claim to half of the property’s equity can be legally complex. Since her name was added to the title six years ago, it suggests that she may have a legal interest in the property, especially if she was included as a co-owner. The fact that she left years before the divorce but is now claiming half of the equity could be influenced by her belief that the property was jointly owned or part of marital assets.

Since there was no prenuptial agreement, the court will likely consider the house as marital property, which is typically subject to equitable distribution. This means the property’s value at the time of divorce could be divided, but it does not necessarily mean a 50/50 split. The court may look at factors like the length of the marriage, contributions made by each party, and the management of finances during the marriage.

To approach this legally, you should gather evidence showing how the property was acquired and any financial contributions made by both parties. It’s crucial to have a clear understanding of the value of the property and any potential appreciation since the divorce. A family law attorney can help guide you through this process and ensure your interests are represented.

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