Division Of Marital Assets Sets The Financial Foundation For Your Post-Divorce Life
If you get divorced in North Carolina, your marital assets and debts will be divided according to the law of equitable distribution. “Equitable” is presumed to be 50-50. However, there are financial factors the court can use to award one party a greater share of marital assets. For example, if one party has a higher earning capacity, the high-wage earner may receive less than 50% of marital assets.
When significant assets are at stake, it is important to get good legal advice as early as possible in the divorce process. With several board-certified specialists in family law, Ellis Family Law, P.L.L.C., is fully qualified to help you protect your separate property rights and obtain a fair distribution of marital property. We represent clients throughout the Triangle area from our offices in Durham, Pittsboro and Wake Forest.
Marital Property Vs. Separate Property In North Carolina
Property you had before you were married is separate property and does not have to be divided except under certain circumstances. It is important to discuss your situation with a qualified attorney to address this situation.
All assets acquired during the course of the marriage and existing on the date of separation are presumed to be marital property. There are exceptions for gifts and inheritances given to one party.
Dividing Retirement Benefits
If you have retirement benefits through your employer, the portion of those benefits earned during your marriage must be divided with your spouse unless the parties agree otherwise. This process often requires the preparation of a qualified domestic relations order (QDRO), which is a legal document that provides instructions to the retirement plan administrator on how to divide the retirement assets. It’s crucial to handle this correctly to ensure that both parties receive their fair share without incurring unnecessary taxes or penalties.
How Property Division Can Differ For Each Case
Property division in a divorce can quickly become complicated, especially in unique scenarios such as owning a business, multiple properties or other significant assets. Each situation is unique and requires careful consideration to ensure a fair division. Factors such as the valuation of a business, the division of real estate holdings and the management of shared investments can all add layers of complexity to the process.
Frequently Asked Questions About Property Division
We understand you have many questions about the property division process in North Carolina, and we’ll do our best to provide you with the necessary answers. Below are some of the common questions we receive from clients to give you a place to start. For further inquiries, call us at 919-944-4811 or send us an email online.
How does a prenuptial agreement affect property division?
If you create a prenuptial agreement prior to marriage, you can predefine how your assets should be divided in the event of a divorce. A prenuptial agreement allows you to bypass North Carolina’s equitable distribution law. By establishing a prenup, you can outline how to handle real estate properties, businesses, stocks, retirement accounts and other significant assets during divorce. As long as your prenup remains valid at the time of the divorce, the property division process will follow your prenuptial agreement instead of the typical rules for equitable distribution.
What happens to the marital home in divorce?
One of the most common concerns spouses have when it comes to property division is regarding their family home. Who will get to keep it? Do you have to sell the house? Homes purchased during the marriage are considered marital property, so both spouses have an equal claim to the property. You can decide to sell the house and split the profits with your spouse, or you can buy out your spouse’s share if you wish to keep the home for yourself. Determining the best course of action depends on various factors, and our attorneys can help you choose what’s right for you.
How is debt divided in a divorce?
As with other property and assets, any shared and marital debt is also divided following equitable distribution laws. This can apply to credit card debts, student loan debts and other types of debt that were accrued during the marriage. However, the circumstances around how the debt was accrued may impact how it’s divided. Every case is considered separately. For example, if a spouse racks up a significant credit card debt by using the other spouse’s credit card without their knowledge, the court may not divide the debt between the spouses and instead determine that the spouse who accrued the debt is solely accountable for paying it off.
For student loan debts, loans that were taken out prior to getting married are not eligible for property division and remain separate property that you are responsible for yourself. However, if you’re in school while you were married and you took out a loan, this may be considered a marital debt. Various other factors will be considered such as whether you and your spouse were working or contributing to the household.
Understanding how your specific debts may impact your divorce can be complicated. We can help review your situation so you know what to expect moving forward.
Ready To Advocate For You
The legal team at Ellis Family Law is ready to protect your interests regarding the division of marital property and all other divorce matters. Call 919-944-4811 or fill out the contact form on this site to schedule a consultation. Our offices are located in Durham, Pittsboro and Wake Forest.