Are you preparing to end your marriage in Gastonia, North Carolina, and wondering how to handle property division during the divorce process? It’s natural to feel concerned, as this aspect of the divorce process can affect your financial future for years to come.
A Gastonia property division attorney at Caulder & Valentine can help you understand your options, make informed choices, and move forward with confidence. Whether you’re worried about keeping your home, dividing retirement savings, or sorting through debts, we’ll help you handle things the right way. Contact us today for an initial and confidential consultation, and let’s talk about how you can protect what matters most.
How a Gastonia Property Division Lawyer Can Help You
Divorce is already difficult enough, and the process of splitting years’ or even decades’ worth of shared assets and debts can quickly get overwhelming. A property division lawyer in Gastonia can step in to guide you, protect your interests, and make sure you’re treated fairly in the following ways:
- Explaining what counts as marital, separate, or divisible property
- Considering the potential impacts of property division after divorce
- Helping you collect and organize financial documents and property records
- Identifying hidden assets or debts that your spouse might not have disclosed
- Working with financial experts, if necessary, to evaluate complex assets or businesses
- Helping you negotiate or advocate for a fair division of property
- Drafting legal documents that align with North Carolina divorce and property laws
- Representing you in court if your case goes to a hearing
How Are Property and Assets Divided During a Divorce in North Carolina?
So, exactly how do you divide property during a divorce in North Carolina? The courts use an “equitable distribution” standard to determine what’s fair. They start by figuring out what property qualifies as marital, separate, or divisible, which are defined as follows:
- Marital property includes things you and your spouse acquired during the marriage, like income, real estate, vehicles, and retirement accounts.
- Separate property includes anything you owned before the marriage or received through inheritance or gifts from someone other than your spouse.
- Divisible property includes things like passive income earned on marital assets after separation, or bonuses or commissions earned for work done during the marriage but received afterward.
Once the court classifies the property, it values each item based on its worth at the time of separation. This can include any post-separation changes in value for specific assets or debts. The court then decides how to divide it. The law assumes an equal split is fair, but judges can make different decisions if the evidence suggests that a different outcome would be more reasonable.
What Does Equitable Distribution Mean for Divorce in North Carolina?
In the equitable distribution process, the court divides marital and divisible property in a way that is fair but not necessarily equal. While the court often starts with a 50/50 split, it may adjust the division based on each spouse’s situation. The goal is to give both spouses a reasonable share of what they built together during the marriage.
In some cases, the court may order one spouse to make a lump-sum payment or transfer ownership of property to balance things out. The court does not consider child support or alimony when dividing property. It also does not divide property that either spouse owned before the marriage unless it became marital property after getting mixed with marital assets or funds.
What Factors Do North Carolina Courts Consider When Determining Equitable Distribution of Property?
Every divorce is different, and North Carolina courts look at many factors when deciding how to divide property, such as the following:
- Each spouse’s income, property, and debts at the time of division
- How long the marriage lasted and the age and health of each spouse
- Whether one spouse supported the other’s education or career growth
- Whether one spouse stayed home to raise children or manage the household
- If either spouse wasted or misused assets or had an affair
- The value and type of certain assets, like businesses or retirement plans
- Whether one spouse needs to stay in the marital home for the children
- Any tax effects linked to dividing or selling the property
- Whether either spouse helped increase the value of the other’s separate property
In a North Carolina Divorce, Who Gets the House?
One of the most common questions we at Caulder & Valetine get from clients is, “Who gets the house in a North Carolina divorce?” The court decides who gets the house based on whether it is considered marital property and what is in the best interest of both spouses. If you and your spouse bought the home during your marriage, it’s likely marital property. If one of you owned it before the marriage or inherited it, the court will likely treat it as separate property.
If the house is marital property, the court considers several factors before deciding who will reside in it or whether it should be sold. The judge may let a parent with custody of the children keep the house, especially if moving would cause significant disruption. If neither spouse can afford to keep the house, the court might order them to sell it and split the proceeds. In some cases, one spouse might buy out the other’s share or give up other property in exchange.
What Types of Assets Are Divided in a North Carolina Divorce?
When it comes to dividing assets in divorce, the courts only split marital and divisible property. They do not divide separate property. In a divorce, property owned before marriage and property acquired after separation but before divorce count as separate property, which is not subject to division.
The court looks at the date each item was acquired, who paid for it, and how it was used to determine whether it should be divided in a divorce. If you and your spouse both contributed to or used an asset, it will likely be divided. Debts are also part of the equation, and courts may assign them to either spouse depending on who benefited from them most.
What About Dividing Personal Property in Divorce?
Personal property includes things like furniture, electronics, household appliances, tools, clothing, and household goods. In a North Carolina divorce, the court treats personal property the same as other marital property. If you and your spouse purchased an item during the marriage, it is likely considered marital property and is subject to division. If one of you brought it into the marriage or received it as a gift from someone else, it may be considered separate.
Courts prefer that spouses agree on dividing their personal property in a divorce on their own, without the judge intervening. For instance, you might agree that one person keeps the living room furniture while the other takes the bedroom set. If you can’t agree, however, the court will include personal items in its property distribution process and assign them a fair market value.
What You Should Expect During the Property Distribution Process
The property division process starts when one spouse files an equitable distribution claim. Next, you and your spouse must each submit an inventory that lists all assets and debts, declares what you believe is marital or separate property, and clarifies the estimated value.
If you and your spouse can agree on how to split marital and divisible assets, the court will review your agreement and, if it’s fair, enter it into the record. If not, the case could go to trial, where the judge will classify and value each item and decide how to divide everything fairly. This process can take time, especially if the case involves complex assets or disagreements about what should be divided.
What Happens If Spouses Can’t Agree to Equitable Distribution of Marital Property?
If spouses can’t agree to equitable distribution of marital property, the court will decide for them. The judge will begin by reviewing the financial affidavits and other documents from both parties. They may also hear testimony from the spouses or expert witnesses to explain values or property issues. Then, the judge will categorize all property as marital, separate, or divisible and assign a value to each item.
North Carolina law states that an equal split is fair unless one spouse can prove that a different arrangement is more equitable. The court may order one person to transfer property, pay a lump sum, or relinquish a greater share of other assets to equalize the situation.
How Are Divorce and Taxes Handled?
North Carolina courts consider tax issues when determining whether a 50/50 split is equitable. For example, one spouse may acquire a house with higher property taxes or be required to sell a business, incurring capital gains taxes. These tax consequences can impact the actual value each person retains.
The court may not divide assets perfectly in half if one spouse would face a bigger tax burden. They may also consider how divorce and taxes affect retirement accounts, such as 401(k)s or IRAs. If not handled properly, a transfer from one spouse to another could trigger penalties. You should always speak with a lawyer during the divorce process to get help accounting for taxes.
