Understanding the Valuation of Enhanced Earnings in New York Divorce Cases
Divorce proceedings involve numerous complex legal and financial considerations, one of which is the valuation of enhanced earnings. In New York State, not only tangible assets but also intangible ones like law and medical degrees can significantly impact the division of assets. Here’s a deeper look at how enhanced earnings are treated in divorce cases and the common oversights that occur.
Valuation of Professional Degrees in Divorce
It is relatively well-known among divorce attorneys that professional degrees such as those in law and medicine can be considered marital assets in New York. These degrees are often valued and divided as part of the divorce settlement because they are expected to increase the earning capacity of the holder.
“Most lawyers recognize that law degrees, and medical degrees can be valued as part of a divorce in New York State,” explains Brian D. Perskin, a noted family law attorney.
Overlooking Other Forms of Enhanced Earnings
However, the scope of what can be considered for valuation extends beyond these degrees. Other forms of enhanced earnings that might accrue during the marriage are frequently overlooked in legal practice. This oversight extends to some of the judiciary, complicating the consistent application of the law.
“What many lawyers overlook is attempting to place a value on other forms of enhanced earnings. For that matter, half the judges in New York don’t know that a wife or a husband can place a value on any type of enhanced earnings earned during the marriage,” Perskin adds.
This gap in knowledge and application can lead to inequities in how divorce settlements are calculated and awarded.
Implications for Divorce Litigants
For spouses undergoing divorce, understanding the full range of assets that can be valued and divided is crucial. It’s not just about who gets the house or the savings account, but also about how each partner’s capacity to earn more because of investments made during the marriage can be equitably recognized.
Brian D. Perskin emphasizes the importance of comprehensive legal guidance during these proceedings: “Recognizing and accurately valuing enhanced earnings can significantly affect the outcomes of divorce settlements. It’s essential that both parties seek knowledgeable legal counsel to ensure a fair distribution.”
Hiring a New Manhattan Attorney
The valuation of enhanced earnings, including but not limited to professional degrees, is a critical aspect of divorce law in New York. While commonly understood in the context of high-value degrees, other forms of enhanced earnings are often neglected, leading to potential injustices in divorce settlements. Awareness and expertise in handling these aspects are key to achieving equitable outcomes for all parties involved.
Contact us at 877-826-7257 today to get expert-guided legal representation.