Divorce proceedings can be emotionally and financially draining for both parties involved. Aside from child custody and support, one of the most important issues to address in a divorce case is the equitable distribution of marital assets and debts.
In the state of North Carolina, the court follows the principle of "equitable distribution" when dividing marital property. This means that marital assets and debts are divided fairly, but not necessarily equally, between spouses.
Here’s a rundown of the basics of equitable distribution in North Carolina divorce cases.
What is considered "marital property"?
Before diving into the specifics of equitable distribution, let’s first define what is considered "marital property." In North Carolina, marital property refers to all assets and debts acquired during the marriage, with a few exceptions.
Exceptions to marital property include gifts, inheritances, and property owned before the marriage. These types of property are considered separate and will not be subject to equitable distribution.
How does equitable distribution work?
When it comes to dividing marital property, North Carolina courts follow a three-step process:
Identification: The first step is identifying all assets and debts that are considered marital property. This requires a thorough examination of all financial records and assets, including bank accounts, retirement accounts, investments, real estate, and personal property.
Classification: After identifying all marital property, the next step is to classify each asset and debt as either "marital" or "separate." As mentioned earlier, separate property is not subject to equitable distribution.
Distribution: Finally, once all marital property has been identified and classified, the court will determine how to distribute the assets and debts fairly, based on various factors.
Factors to consider in equitable distribution
In determining a fair distribution of marital property, the court will consider several factors, including:
- The length of the marriage
- The income and earning potential of each spouse
- Each spouse’s contribution to the marriage, including homemaking and child-rearing
- The value of each spouse’s separate property
- The needs of each spouse
- Any acts of marital misconduct, such as adultery or domestic violence
It’s important to note that while "fair" does not necessarily mean "equal," the court will strive to divide property fairly based on the facts of the case.
Speak to a lawyer for further assistance
Divorce can be a stressful and complex process, and the division of marital property is just one of the many issues that must be addressed. If you’re going through a divorce in North Carolina and have questions about equitable distribution, it’s important to speak to a qualified family law attorney for guidance.
They can help you understand the specific laws and regulations surrounding equitable distribution and ensure that your assets and debts are divided fairly in accordance with North Carolina law.