Frequently Asked Questions About Equitable Distribution

Many people have questions as they face the divorce process. At Raleigh Divorce Law Firm, we understand how confusing and overwhelming the process can be. Here are some questions we frequently hear.

How Is Property And Assets Divided In A Divorce?

Dividing assets during a divorce can be a very challenging task. North Carolina is an equitable state. This means the court will divide everything – both your property as well as your debts – in an equitable or fair way.

What Is Marital Vs. Separate Vs. Divisible Property?

A court will divide your property based on whether it is marital, divisible or separate.

• Marital property is acquired during the marriage up until the separation.
• Separate property is property you owned before the marriage, or that which you gained or lost after the separation.
• Dividable property is property acquired from the date of separation up until the date of division.

What Assets Are Divided In Equitable Distribution?

Equitable distribution cases have included these and other elements:

• Retirement assets such as 401Ks, pensions and QDROS
• Family businesses and partnerships
• Hidden assets in offshore bank accounts
• All marital debt

Are All Assets Subject To Equitable Distribution?

Not all assets are subject to equitable distribution in North Carolina. Generally, only marital property is divided. Marital property includes assets acquired during the marriage. Separate property, on the other hand, remains with the original owner. Separate property includes assets owned before the marriage and gifts or inheritances received by one spouse.

Sometimes, determining what is marital or separate property can be tricky. For instance, if a separate asset increases in value during the marriage due to both spouses’ efforts, it might be considered marital property. Therefore, identifying which assets fall into each category is crucial for equitable distribution. This process ensures a fair division of property between both parties.

How Is Debt Divided In Equitable Distribution?

In North Carolina, debt division follows the same principles as asset division. Debts incurred during the marriage are typically considered marital debts. Therefore, both spouses usually share responsibility for them. However, debts incurred before marriage are separate debts. The spouse who incurred them is responsible for repayment. It’s essential to identify who is responsible for which debts accurately. Sometimes, disputes arise over whether a debt is marital or separate.

For example, if one spouse takes on a loan for personal reasons, it might be considered separate. The court aims to distribute debts fairly, considering each spouse’s financial situation. The goal is to ensure neither party bears an unfair financial burden post-divorce.

How Does North Carolina Law Determine Fair And Equitable Distribution?

Marital property in North Caroline is presumed to be divided 50/50, but the courts keep it fair by looking at it holistically, with all assets and debts together. In some situations, the court may give more than half to one party if the party who believes he or she deserves more than 50% can prove and justify the reason why. Some factors analyzed may include the house the children will reside in and their earning potential.

How Long Does The Equitable Distribution Process Take?

The equitable distribution process in North Carolina can vary in length. It depends on several factors, such as the complexity of the assets and the cooperation between the spouses. Sometimes, it may take a few months. Other times, it can take over a year. Initially, both parties must disclose all assets and debts.

Then, they might need valuations for certain assets, like real estate or businesses. If both parties agree, the process moves faster. However, if there are disputes, it might take longer, as court involvement may be necessary. Patience and cooperation facilitate a smoother process.

Can The Equitable Distribution Be Modified After The Divorce Is Final?

Generally, equitable distribution in North Carolina is final once the court issues a judgment. However, there are rare exceptions. If one party discovers hidden assets or fraud after the divorce, they might request a modification. Similarly, if there was a mistake in the original judgment, it could be revisited. Nonetheless, such changes are not common.

The court requires substantial evidence to reconsider the distribution. It’s crucial to ensure all assets and debts are correctly reported during the process. Doing so helps prevent the need for modifications later. If issues arise, consulting with legal professionals might be necessary to explore possible solutions.

Have More Questions About Property Division? Contact Our Firm.

Our team of family law attorneys can help advocate for property division that is equitably divided and distributed. Contact us at 919-926-1943 or email us your questions with our quick email form.