Can New York Courts Distribute Property Located Outside the U.S. in a Divorce?

When couples divorce in New York, one of the most significant legal issues is the equitable distribution of marital property. But what happens when some of that property is located overseas?

Whether it's a vacation home in Italy, a bank account in Switzerland, or investment holdings in Canada, the issue becomes whether a New York court has jurisdiction to equitably distribute foreign property.

The short answer: Yes—but with serious practical limits. Under New York’s Domestic Relations Law § 236(B), the courts have the authority to equitably distribute marital property,

regardless of where it is physically located. This includes real estate and personal property situated outside the United States. However, while the court has the authority to consider and order the distribution of foreign property, enforcing that order abroad can present practical challenges.

A key principle in these cases is that New York courts exercise in personam jurisdiction i.e., authority over the individuals involved in the divorce—not in rem jurisdiction (authority over the property itself). As long as the court has personal jurisdiction over both spouses, it can direct them to take actions concerning assets abroad, such as selling a home or transferring funds.

For example, if the court determines that a villa in Spain is marital property, it can issue an order requiring one spouse to transfer title to the other, or to sell the property and divide the proceeds.

However, the court cannot directly bind foreign land records or compel a foreign government to enforce its order. The enforceability of a New York divorce judgment in a foreign country depends heavily on that country’s laws and its relationship with the United States. Some countries will recognize and enforce U.S. court orders readily; others may require the parties to initiate separate legal proceedings in that country to give effect to the judgment.

Even if enforcement abroad may be difficult, full financial disclosure remains critical. A spouse attempting to conceal foreign assets may face sanctions, a negative inference by the court, or an unequal distribution of domestic assets to account for the hidden foreign ones.

If you or your spouse own property outside of the United States, it’s essential to work with

an experienced matrimonial attorney who understands both the domestic and international

implications of equitable distribution. While New York courts can—and often do—consider foreign property in divorce proceedings, proper planning and legal coordination are key to ensuring a fair and enforceable resolution.