If you are in the process of ending your marriage in North Carolina, you may have serious concerns, such as, “How do you divide property during a divorce?” “Who gets the house in a North Carolina divorce?” “Which of my assets would be safe from my ex-spouse and which aren’t?” If so, you’re not alone. Property division is one of the most common concerns married couples have when they split.
A Shelby property division attorney from Caulder & Valentine can give you clear answers and walk you through each step of the asset division process. Our team helps clients in Shelby understand their rights, organize their financial information, and work toward fair outcomes that reflect their needs.
If you have questions or would like to discuss your situation, contact us today to arrange a confidential consultation with a property division lawyer in Shelby.
How a Shelby Property Division Lawyer Can Help You
Property division during divorce can bring about stress, confusion, and bitter disagreements. A lawyer from Caulder & Valentine can help you understand your rights and work to protect what matters to you throughout the process. If you’re unsure what counts as marital property or how to divide complex assets, an attorney can provide the clear guidance you need.
At Caulder & Valentine, we focus on family law matters, allowing us to understand local divorce and property laws, as well as how judges handle these matters in Cleveland County. We strive to help you make informed choices for your future at every step.
Our attorneys also know how to deal with spouses who try to hide or undervalue assets. If necessary, we can bring in appraisers, financial experts, or other professionals to ensure the property is valued and divided fairly.
How Are Property and Assets Divided During a Divorce in North Carolina?
North Carolina courts follow an “equitable distribution” process when dividing property and assets in a divorce. The first step in this process is to determine which items constitute separate property and which constitute marital property. Courts only divide marital and divisible property in divorce. Separate property stays with the person who owns it.
Marital property includes things like homes, vehicles, bank accounts, and retirement accounts acquired during the marriage. Divisible property can include changes in the value of marital property or income earned from marital assets after the couple separates but before the court finalizes the divorce.
Once the court has labeled and valued everything, it decides how to divide it. Judges usually divide marital property equally, but they can distribute it differently based on what’s fair for the situation.
What Does Equitable Distribution Mean for Divorce in North Carolina?
Equitable distribution means that courts divide property fairly but not always evenly in divorce cases. North Carolina law begins with the premise that a 50/50 split is fair, but judges can award one spouse more than half if the facts support it. The courts consider each spouse’s financial situation, contributions made during the marriage, and their respective needs after the divorce to determine what is fair.
Only marital and divisible property get split during equitable distribution. Separate property stays with the person who owns it. For example, if one spouse owned a house before the marriage and never added the other spouse to the title, that house generally stays with the original owner.
Equitable distribution gives the court some flexibility. The goal is to ensure a fair outcome for both sides, not just one that appears equal on paper.
What Factors Do North Carolina Courts Consider When Determining Equitable Distribution of Property?
Courts in North Carolina consider several factors when dividing assets during divorce. Judges review each couple’s specific situation and consider such things as the following:
- Each person’s income, debts, and property at the time of division
- How long the couple was married
- Each person’s age and health
- Whether one spouse needs to stay in the home with children
- Each person’s retirement or pension plans
- Any claims by a spouse who helped the other earn or grow property
- Any support one spouse provided for the other’s education or career
- Changes either spouse caused in the value of separate property
- Whether certain assets are easy or difficult to sell or divide
- Tax issues that might arise from dividing the property
- Whether either spouse wasted or tried to hide property after separating
- Anything other factors the court finds relevant
Who Gets the House in a North Carolina Divorce?
The party who keeps the house depends on several factors. In a divorce, property owned before marriage and never shared between spouses typically counts as separate property. This includes houses. However, if a couple bought a house during their marriage, it’s likely marital property, even if only one name is on the deed.
The court also considers who can afford to keep the home, whether children reside there, and whether one person wants or needs to stay. If both want it, the judge might order a sale and split the profits.
Sometimes, one spouse keeps the house, and the other gets more assets to balance things out. If the house has a mortgage, the court might also decide who is responsible for payments.
What Types of Assets Are Divided in a North Carolina Divorce?
In a North Carolina divorce, courts divide marital and divisible property. Marital property typically encompasses most assets a couple acquires during the marriage. That might include the marital home, cars, furniture, retirement accounts, business interests, and savings. Even if one spouse earned more, those assets still count as marital if they were acquired during the marriage.
Divisible property includes certain changes to the value of marital property acquired after separation but before divorce. For example, if a retirement account earns interest or a property increases in value during that time, the added value could be considered divisible.
The court does not divide separate property, which includes anything either spouse owned before marriage or received by gift or inheritance during the marriage. Judges only divide property that falls into the marital or divisible category.
What About Dividing Personal Property in Divorce?
Personal property can include household items, furniture, tools, jewelry, and even items such as art or collectibles. If the couple purchased these items during the marriage, they likely constitute marital property, and the court can divide them. If one spouse brought the items into the marriage or received them as a gift, they are likely considered separate property.
Couples often handle the division of personal items on their own, especially if the items have more sentimental than financial value. However, if spouses disagree, the court may step in. Judges look at what’s fair based on the total division of assets, not just the personal items.
Courts often prefer that spouses resolve these issues themselves or through mediation. If they can’t, judges may assign certain items to each spouse.
What You Should Expect During the Property Distribution Process
When you start the property distribution process, you and your spouse must both share full lists of what you own and owe. These lists help the court determine what to divide and how to divide it. You’ll need to list all separate, marital, and divisible assets along with their values. That includes bank accounts, investments, real estate, retirement accounts, and debts.
Next, your lawyer or the court will review these details, identify what qualifies for division, and place a value on each asset. If you and your spouse can reach an agreement, the judge will likely approve it. Otherwise, the court will decide for you. The parties may bring in appraisers if necessary to determine how to divide the marital and divisible property fairly.
What Happens If Spouses Can’t Agree to Equitable Distribution of Marital Property?
If spouses can’t agree on how to divide property, the court takes over. A judge hears both sides, reviews each person’s list of assets and debts, and looks at what counts as marital and divisible property. The court then determines how to divide the assets fairly in accordance with North Carolina law.
The judge will review several factors, including income, the length of the marriage, and the needs of each party after the divorce. If one spouse attempts to conceal assets or intentionally delays the process, the court may penalize them. The goal is not to punish either side but to make a fair decision based on facts.
You can avoid having a judge decide for you by working things out through mediation or with help from your lawyers. However, the court will be ready to step in if necessary.
How are Divorce and Taxes Handled?
The way you handle property, retirement accounts, or real estate can affect the taxes you pay for property division after divorce. For example, if you move retirement money without following certain rules, you might incur tax penalties. If you sell a house, it may result in capital gains taxes, depending on the sale price and the length of ownership.
You and your lawyer should look at these issues before making any final decisions. The court will also consider tax consequences when dividing property to prevent unfair outcomes for either spouse. Planning ahead with a knowledgeable divorce attorney can help you avoid tax surprises later.
Contact a Shelby Property Division Attorney Today
If you’re going through a divorce and have questions about dividing property, contact Caulder & Valentine today. The sooner you get clear guidance from our property division lawyers in Shelby, the more prepared you’ll be to protect what matters to you. Reach out to our firm today to set up an initial consultation and get the answers you need.