Equitable Distribution Of Marital Property In North Carolina
The state of North Carolina uses the principle of “equitable distribution” to divide marital property when spouses divorce. In almost every marriage, there will be shared marital property subject to division.
Our family law attorneys in Monroe at The Khan Law Offices, PLLC, can help you be sure that you receive all of the property to which you are entitled. Our attorneys have decades of experience handling divorce cases and facilitating property divisions. We serve clients in Union County and beyond. Our in-depth knowledge of family law can work to your benefit when protecting your property interests and building your post-divorce life.
Breaking Down Property Division
Under the North Carolina General Statutes 50-20 (b) (1), “marital property” includes “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 of the parties, and presently owned.” This definition is subject to certain exceptions.
Your right to a portion of the shared marital property “vests” once you have separated from your spouse. Unlike in many other states, you are not necessarily entitled to 50% of the marital property in North Carolina. Rather, the guiding standard is “equitable property division,” which means a division that is fair and just for your situation.
Steps And Factors In Property Division
Several steps have to be taken in order to properly divide marital property. Our lawyers can assist with planning for the property division.
Your lawyer and the court will first have to identify all of the property, and then decide if it can be properly classified as marital property rather than separate property.
- The court will place a value on the property. The value will be based on fair market value minus any debts or encumbrances. The spouses receive a portion of the net value.
- The court will then distribute the property to the former spouses. This division may not be equal and the final distribution can depend on many factors:
- The length of the marriage
- The age and health of the parties
- The parties’ financial well-being at the time of the separation
- Contributions made by one spouse to the other spouse’s education or separate property business
Our lawyers will guide you through every step in the process, advocating for your property interests to help you get your fair share.
What If You Have A Prenup?
A prenuptial agreement, commonly referred to as a prenup, can significantly impact the division of property during divorce. A well-drafted prenup specifies how assets and debts will be handled in divorce, potentially overriding the state’s default rules on marital property division.
If you have a prenup, the first step is determining whether it’s valid and enforceable. This depends on whether it was executed properly and whether its terms are in alignment with North Carolina law regarding enforceable prenups. Our lawyers can review yours to evaluate how it impacts property division in your divorce. Depending on the circumstances, we can fight to have it upheld or challenged.
What Is Excluded From Marital Property?
Only marital property is subject to division during divorce. Property that one spouse owned before the marriage – or acquired by gift or inheritance during the marriage – is typically classified as separate property. However, for property to maintain its separate status, it must be kept separate from marital assets. Additionally, any appreciation in the value of premarital property may be considered marital property, depending on how it’s treated during the marriage. Proper documentation and careful financial management are key to preserving the separate nature of those assets.
Contact Us For Guidance On Property Division In Divorce
As you can imagine, there can be a great amount of disagreement over who gets what in divorce. We can walk you through this and other divorce considerations. Contact The Khan Law Offices, PLLC, today at 704-765-0667 to discuss your case.