Marital property includes all assets gained by either spouse during the marriage, regardless of ownership or location. In theory, New York state courts treat international assets like any other marital property.
There should be an equitable distribution
New York uses equitable distribution to divide marital property during a divorce. Unlike states that split assets 50/50, New York courts aim for a fair division based on factors like:
- The length of the marriage
- The current and future earning abilities of both spouses
- The physical and emotional health of each spouse
- Both financial and nonfinancial contributions
These rules also apply to international assets, including properties, bank accounts, stocks, bonds and any business interests or partnerships bought or established abroad during the marriage.
You may run into some issues however
Valuing and dividing international assets during a divorce can be difficult. Challenges include:
- Difficulty locating assets: One spouse might hide assets in foreign accounts or properties, often needing forensic accountants and legal experts to find them. Complex structures like trusts or shell companies can also hide ownership.
- Complicated valuation: Changing currency exchange rates can complicate the valuation process and lead to disputes over fair market value.
- Additional legal and tax considerations: Dividing international assets can have significant tax consequences in both the U.S. and foreign countries. Understanding both tax laws is crucial to avoid unexpected liabilities, but it may lengthen divorce proceedings.
U.S. courts may have jurisdiction over the divorce, but they must also consider local laws where the assets are located. Enforcing these court orders can be challenging since some foreign courts might not recognize or implement U.S. judgments.
Protect your financial future
Divorce can be one of the most challenging times in your life, especially when it involves dividing significant assets. Make sure that your hard-earned wealth and property are fairly divided and that you receive what is rightfully yours.