Charlotte Divorce Lawyer Blog
Separate Property in Divorce in North Carolina
Going through a divorce can be a daunting experience, both emotionally and financially. One of the most difficult parts of the process can be dividing your assets. In North Carolina, assets are to be distributed in an equal manner between spouses. While that may sound like an easy thing to do, in practice, dividing property can be quite difficult. One of the first things you will need to do is determine which assets are marital and which are considered separate, or nonmarital.
How Assets are Distributed in a Divorce
North Carolina uses equal distribution to divide property in a divorce. Both parties should be left with about equal portions of their marital property after the divorce. Parties should work towards a settlement agreement prior to court. The judge will review the settlement distribution to ensure that it is equitable. If a couple disagrees about the distribution, the court may request that they seek mediation to assist in coming to an agreement. The court will finalize the agreement in a manner that provides for a fair settlement for both parties.
Marital and Non-Marital Property
Before a couple can divide their assets, they must determine which property is marital and which is non-marital. North Carolina law defines marital property as “all real and personal property acquired by either spouse or both spouses during the course of the marriage and before the date of the separation.” Separate property, also called non-marital property, includes personal property that either party acquired prior to marriage and, in some cases, inheritances and gifts made to just one party during the marriage.
Determining Non-Marital Property
It is easy to determine some assets as separate property when they were purchased and owned by one party before the marriage. However, there are many instances where determining non-marital property can be more difficult. For example, one party may own a home prior to marriage. However, during the marriage, both parties contributed to mortgage payments and to the upkeep and maintenance of the home. Therefore, at least a portion of the home may actually be considered to belong to both parties.
Spouses may contribute to a 401K or other retirement plan that they held prior to the marriage. Parties may each be entitled to a portion of the savings based on the amount they contributed to it while they were married. Things can become even more convoluted when one or both parties were previously married.
Division of Property in a Settlement Agreement
Parties need to try to agree to the distribution of marital property. The first step is to list all assets and property and make a determination as to whether the property is marital or nonmarital. If the property is separate, it is not included in the equal distribution in a divorce settlement. Agreeing to a portion of property allotment can be complex and challenging. It is helpful to seek legal guidance through the process.
The divorce process can be challenging, especially when you and your spouse have a large number of assets. It is helpful to talk to an attorney as soon as possible to learn your options. Contact us today at Arnold & Smith, PLLC, at (704) 370-2828 to schedule a consultation.
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/separate_property
Image Credit:
House 2 Free Photo Download | FreeImages
See Our Related Video from our YouTube channel:
https://www.youtube.com/c/Arnoldsmithlaw
See Our Related Blog Posts:
Do We Need a Prenuptial Agreement?