Charlotte Divorce Lawyer Blog
Asset and Property Division in North Carolina Divorce
Going through a divorce is not always easy. It can be one of the most stressful times in your life. As you go through the divorce process, you and your spouse will need to discuss how to divide your property. Finances are often the most divisive part of a divorce. Even amicable splits can turn acrimonious when it comes to asset and property division. A knowledgeable divorce attorney will guide you through the divorce process and help make things easier and less stressful.
Types of Property
There are three main categories of property in North Carolina. These include separate property, marital property, and divisible property. It is helpful to understand the differences so you can properly evaluate your assets for an equal distribution.
Separate Property
Separate property is anything owned by one party prior to marriage or acquired after the date of separation. It also includes an inheritance or any gift that one party receives during the marriage. Separate property is yours alone and is not divided as part of the distribution of assets in a divorce.
Marital Property
Marital property includes any assets and debts that a couple accumulated during their marriage. It may include real property, bank accounts, and any other assets, as well as any debts you have during your marriage. It also includes a vested interest in pension or retirement accounts.
Divisible Property
After the date of separation, the value of assets or debts may change. These changes must be accounted for through divisible property rules. For instance, if you own a marital home, the market value could increase during the separation period. This change is considered divisible property.
Equal Distribution in North Carolina
North Carolina law requires an equal distribution of assets in divorce. Equal distribution means that each spouse receives half of the estate. Couples are encouraged to work out any differences they may have and come to an agreement regarding the division of property in divorce. If couples cannot agree, the judge may require them to participate in mediation to resolve their differences. If couples are unable to agree to distribution, the court will review the matter as part of the divorce and will make a decision on the distribution of assets and debts.
The court utilizes a variety of factors to determine the fair and equal distribution of marital assets based on North Carolina General Statute Sec. 50-20. Some of these factors include income, property, and debts of each party, length of marriage, liquid or non-liquid property, the need of one party to maintain the home, tax consequences, and many others. The judge will evaluate any aspects that could alter the presumed equal distribution of assets.
North Carolina divorce laws allow no-fault divorce. Marital misconduct does not enter into the asset and property division. However, these issues could come into play for spousal support. The longer a marriage, the more assets the couple has acquired and the more complex the division of property may be. You will want to seek legal guidance to ensure a fair distribution. If you are seeking a divorce, we are here to help. Contact us at Arnold & Smith, PLLC, at (704) 370-2828 to schedule a consultation.
legal team.
The family law practice group at Arnold & Smith, PLLC includes four Board-Certified Family Law specialists and one Child Welfare Law specialist, as well as several attorneys with many years of family law experience that are committed to providing a powerful voice to individuals facing the often-tumultuous issues in this area of law. The range of issues our family law clients may be facing include pre- and post-nuptial agreements; separation agreements; post-separation support; child support (both temporary and permanent); absolute divorce; divorce from bed and board; military divorce; equitable distribution of assets; child custody (both temporary and permanent); retirement benefits and divorce; alimony and spousal support; adoption; and emancipation. Because this area of the law is usually emotionally charged and complicated, the family law attorneys at Arnold & Smith, PLLC act with the utmost dedication to ensure that each client understands his or her options, and then act to achieve the best result possible for that client’s particular situation.
Source:
https://www.law.cornell.edu/wex/marital_property
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