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The increase in value of a titled spouse's separate property is subject to equitable distribution as marital property “to the extent that such appreciation is due in part to the contributions or efforts of the other spouse.” D.R.L. ' 236 (B)(1)(d)(3).
The Court of Appeals has repeatedly determined that a broad interpretation be given to this exclusion so as to favor the inclusion of such appreciation as marital property: “We hold that under the Equitable Distribution Law an increase in the value of separate property of one spouse, occurring during the marriage and prior to the commencement of matrimonial proceedings, which is due in part to the indirect contributions or efforts of the other spouse as homemaker and parent, should be considered marital property Domestic Relations Law '236 (B)(1)(d)(3).” Price v. Price, 69 N.Y2d 8 (1986); see Majauskas v. Majauskas, 61 N.Y.2d 481 (1984) (the term “separate property” must be construed narrowly).
Note that the increase need not be entirely, or even mostly, due to the non-titled spouse; rather it ” … depends primarily upon the nature of the asset and whether its appreciation was due in some measure to the time and efforts of the titled spouse. If such efforts…were aided and the time devoted to the enterprise made possible, at least in part, by the indirect contributions of the nontitled spouse, the appreciation should, to the extent it was produced by the efforts of the titled spouse, be considered a product of the marital partnership and hence, marital property.” Id.
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