When high-net-worth couples divorce in New York, one of the biggest and most emotionally charged questions is: “Who gets the house?”
For many, the marital home is not only a valuable asset, it’s also a symbol of security, family, and identity. But when divorce becomes inevitable, determining who keeps the house can be complex.
As a medically trained NY divorce attorney and mediator, I often explain to my clients,“The house isn’t just about property, it’s about stability, strategy, and long-term financial health.”
Below, I break down how home ownership is determined during divorce in New York, and what high-net-worth individuals should know to protect their interests.
1. Is the House Marital or Separate Property?
In New York, property is classified as either marital or separate:
- Marital Property: Assets acquired during the marriage, regardless of whose name is on the deed.
- Separate Property: Assets owned before the marriage, or received as a gift or inheritance to one spouse.
If the home was purchased during the marriage or jointly titled, it’s usually considered marital property, subject to equitable distribution, meaning fair but not necessarily equal division. Even if one spouse’s name is on the title, if marital funds were used to pay the mortgage, taxes, or renovations, the home may still be considered a marital asset.
2. How Does Equitable Distribution Work in New York?
New York is an equitable distribution state, not a community property state. The court evaluates several factors to determine who gets the home, such as:
- Each spouse’s income and financial contributions
- Who paid the mortgage and household expenses
- Child custody, especially if it’s in the children’s best interest to stay in the home
- The future financial needs of each spouse
- The liquidity of other marital assets (investments, retirement accounts, real estate portfolios)
For high-net-worth clients, I often emphasize the importance of a comprehensive financial strategy:
I tell clients, “Your home is one piece of a much larger financial puzzle. The best outcomes come from viewing your property division through a business lens, not just an emotional one.”
3. Options for Dividing the Home
When it comes to the marital home, couples generally have three options:
- Sell the house and divide the proceeds.
- Common when neither spouse can afford to maintain the home independently.
- One spouse buys out the other’s share.
- A fair market value appraisal is crucial.
- Deferred sale (“nesting”) arrangements.
- Particularly when children are involved, the custodial parent may stay in the home temporarily while ownership remains joint.
4. How Mediation Can Protect Your Assets
For couples, high-net-worth couples in particular, litigation can be costly, public, and emotionally draining. Mediation offers a confidential, efficient alternative.
My psychologically based divorce mediation method helps clients resolve property and financial disputes with less hostility and at a fraction of the cost of traditional court battles.
In mediation, we focus on financial clarity, emotional intelligence, and crafting solutions that make sense for both parties, without destroying wealth or family peace.
5. Strategic Tips for High-Net-Worth Spouses
If you’re facing divorce and own valuable property in New York:
- Get a professional appraisal of the home and any other real estate holdings.
- Don’t hide assets, transparency builds credibility and saves time.
- Consider tax implications before selling or transferring the property.
- Secure your financial documents early.
- Consult with a seasoned divorce attorney/mediator me who understands both the legal and emotional complexities of high-asset cases.
The question of “Who gets the house?” in a New York divorce depends on many factors that are legal, financial, and emotional.
With decades of experience as a New York divorce attorney, mediator, and medical professional, I have helped numerous high-net-worth clients protect their assets and achieve fair, intelligent resolutions.
If you’re thinking of divorce and concerned about your home or other property, I can help you create a strategic plan that preserves your wealth and peace of mind.
Call now to schedule your free consultation 212.734.1551.
I look forward to helping you and your family!
Warm regards,
Lois