What are “Carrying Costs” in Divorce Cases?

In the context of divorce, the term “carrying cost” refers to the expense of maintaining marital property, such as real estate, until the property is disposed of according to the terms of a divorce agreement or court order. Real estate carrying costs may include property taxes, insurance, or utilities, among other things. Typically, if marital property is to be sold, with the proceeds of the sale to be distributed equally between between the spouses, the property’s carrying costs – the costs of maintaining the property until the sale – is also allocated equally between the spouses. New York courts have declined to order a spouse to pay one-half of all carrying costs on marital property where that spouse was financially unable to make the payments. However, where one spouse has paid the other spouse’s carrying costs, a court may credit those payments to the paying spouse’s maintenance obligations. Courts have the power to allocate carrying costs differently as circumstances require.

If you have any questions about maintenance payments, carrying costs, divorce, or other matrimonial or family law issues, The Law Firm of Vaughn and Weber is here to help. Call (516) 858-2620 to speak with a Family Lawyer and Divorce Attorney today!

*Contributions to the research and preparation of this blog were made by Jason Mays, J.D. (awaiting admission in NYS).