Beyond issues involving children, the most complex part of many divorces is division of assets. When marital property and financial security is affected, an equitable distribution lawyer experienced in property division is key to protecting your interests.
Our divorce lawyers will assist you through the entire process. We will identify marital assets and determine fair and true valuation of assets. If disputes arise, we work to negotiate an equitable property split outside of the courtroom.
Division of Assets by Equitable Distribution
In the state of North Carolina, assets are split during a divorce according to the rules of equitable distribution. While the presumption is that there should be an equal split of assets and debts that are marital property, there are a number of statutory factors that can justify an “unequal” division and distribution of assets. Depending on the circumstances, the court may find compelling reasons to award a larger share of assets or debts to one spouse.
It is important to remember that if your claim for equitable distribution has not been filed with the courts or resolved via a separation agreement prior to the Court granting your divorce, you will lose the right to later petition the court for equitable distribution.
What Items are Marital Property?
In North Carolina, the classification of property determines if the court has to power to divide it. Property must first be classified as either marital, divisible, or separate. North Carolina Courts have the authority to distribute only marital and divisible property. North Carolina General Statute §50-20(b)(1) 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 separation of the parties, and presently owned.
These are the assets that you and your spouse will divide. Common examples of marital property are the home, vehicles, bank accounts, income, pensions, retirement accounts, jewelry, furniture or art.
Divisible Property
Divisible property is a category unique to North Carolina and involves the treatment of passive changes in value to marital and divisible property after the date of separation and before the date of distribution as well as property received after separation but as a result of the efforts during the marriage. An example of this would be a bonus or commission earned during the marriage but not received until after the separation.
What Property Cannot Be Divided in a Divorce?
Property and assets that are not “marital” assets are called separate property and are exempt from division.
Separate property generally refers to (1) any property you or your spouse owned prior to the marriage, (2) items received by one person during marriage that was intended for that person alone, such as an inherited item, or a gift, and (3) assets gained after separation with post-separation earnings.
Does the Court have to Be Involved in the Division of Assets?
No. If you and your spouse are able to agree on how to divide your marital assets, you may split up the property as you wish. Under NC divorce statutes, your decision must be recorded in a formal separation agreement.
If We Cannot Agree, How Will the Court Divide My Property?
In North Carolina, if you cannot amicably resolve how to divide the marital property, the court rules on the property division. This complex process can be boiled down into the following steps:
- Identification: Investigate and asses all assets of both spouses, from real estate to personal possessions.
- Classification: Categorize all property as marital or separate.
- Valuation: Attach a fair market value to each marital asset
- Distribution: Divide all marital property equitably between the parties.
The judge takes many factors into account to determine equitable division of assets, such as both spouses’ income, debt, property, age, health, expectation of pension, or other marital support obligations,. Also considered are fair market values; prenuptial or postnuptial agreements; duration of the marriage; tax consequences — and much more. Fault, such as marital misconduct, is not a factor in equitable distribution.
The above actions taken by the court to assess and divide marital property are the same actions that your attorney from the Cox Law Firm will take when assessing the division of assets in you case.
Our goal is to create swift and efficient resolution to the division of property and all other family law issues. We want our work to help you and your children transition to the next phase of your life as securely as possible.
We serve clients throughout Union County and Mecklenburg County to resolve property division matters including:
- Division of family business
- Division of real estate
- High net worth divorces
- Disputes concerning the division of property
Contact Cox Law: Equitable Distribution & Property Division Lawyer
If you need a lawyer for property division or other family law matter in Union County or Charlotte, North Carolina, please contact us at 704-243-9639 or visit our Contact Page here.