Charlotte Divorce Lawyer Blog
Dividing Marital Debt in North Carolina
Going through a divorce can be one of the most challenging things you will ever do. Sometimes, even the most harmonious divorces can turn ugly. This is especially true when it comes to financial matters such as the distribution of assets and distribution of assets. Most couples have at least some debt. When a couple divorces, it can be difficult for them to handle debt alone. It is best to address marital debt concerns as soon as possible. An experienced divorce attorney will guide you through the process.
Board Certified Family Law Specialist Matt Arnold answers the question: “Do I need an attorney to get a Divorce in North Carolina?”
What is Marital Debt?
Marital debt is debt that is incurred during the marriage. Both parties are responsible for the debt that they accumulated while they were married. Some common examples of marital debt include mortgages, car loans, credit card debt, personal loans, and student loans, among others. In order for a debt to be considered “marital,” it must be part of the marital estate. Generally, only debt that you incur during the marriage and up until you separate is considered marital debt.
Division of Debt in North Carolina
In North Carolina, marital property and debts are to be distributed in an equal manner. This means that each party should receive half of the assets and also must be responsible for half the debt. Typically, parties should work together with the help of their attorneys to create a separation or settlement agreement. Start with a full list of debts that must be considered in a divorce. Then, work towards dividing them in a fair and equal manner. If you cannot come to an agreement, you may need to seek help from a mediator.
What Factors Does the Court Consider in Dividing Debt?
While debt is usually supposed to be divided equally between spouses, there are some factors that could impact the decision. Some factors that the court may consider when dividing marital assets and debt include such things as the length of the marriage, the ages and health of spouses, the income of each spouse, and each spouse’s contribution to the household, among others. Marital misconduct does not usually enter into the distribution of assets except in some extreme cases. For example, if your spouse hid assets, wasted money, or was spending recklessly, it could rise to the level of misconduct that might impact your finances in divorce.
Spending During Separation
North Carolina requires couples to live apart for a period of a year before they can get an absolute divorce. During this separation period, finances can become a difficult topic for spouses. It is during this time that couples may need a separation agreement. A separation agreement defines the settlement terms and will make divorce easier and less stressful. During the year of separation, you will need to separate your finances, too. One party cannot take out a loan for an expensive car with both names, for example.
The decision to separate ad divorce often brings many questions and concerns. To learn more, contact us at Arnold & Smith, PLLC at (704) 370-2828 to request a consultation.
The family law practice group at Arnold & Smith, PLLC includes two 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
https://www.nccourts.gov/help-topics/divorce-and-marriage/separation-and-divorce
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