North Carolina uses equitable distribution principles to divide marital property in a divorce. This means the court starts with the assumption that a 50/50 split is fair, but a judge can change that if another arrangement works better in practice. The outcome of each case depends on the facts. If you and your spouse can agree on how to divide your marital property, you might be able to avoid going to court. But if you can’t agree, the court will divide everything based on North Carolina’s property division laws.
At Greene Wilson & Styron, we have more than 50 years of combined experience helping North Carolinians with a wide range of legal matters, including divorce and property division. When you come to us for help with your equitable distribution case, you can count on us to provide the honest advice and aggressive representation you deserve. Contact us today for a consultation to learn more about how we can support you.
What Counts as Marital Property?
Only marital property gets divided in a North Carolina divorce. Marital property includes anything you or your spouse obtained during the marriage and before your separation. This includes homes, cars, furniture, income, and retirement accounts. It doesn’t matter whose name is on the title or account. If either of you got it during the marriage, it probably counts as marital property. The court will divide all of it unless you and your spouse agree on how to split it.
What Counts as Separate Property?
Separate property doesn’t get divided in a divorce. Property you obtained before the marriage or after your separation is separate property. It also includes gifts or inheritances you received during the marriage from someone other than your spouse. If you used your separate money to buy something and kept it separate, it stays yours. But if you mixed your separate property with marital property, you will need to prove where it came from to keep it after divorce.
Understanding Divisible Property
Divisible property includes certain assets or debts that change after separation but before the court divides them. For example, if a joint bank account earns interest or a business increases in value on its own, those earnings count as divisible property. If the value changes because one spouse worked on it, the court might treat that change differently. Bonuses or commissions earned during the marriage but paid after separation can also count. The courts include divisible property in final property division orders.
How Property Is Valued and When
The court uses specific dates to determine property values. For marital property, the court uses the date you separated. For divisible property, it uses the date the judge divides the property. Some assets, like bank accounts, are easy to value. Others, like homes or retirement accounts, might need appraisals or financial reports. If you and your spouse can’t agree on the value of something, the judge will decide based on the evidence. Accurate values matter because they affect how the court splits everything.
Factors Judges Consider When Dividing Property
When a North Carolina judge decides how to divide property in a divorce, they start by assuming that an equal, 50/50 split is fair. But that doesn’t mean both spouses will always get the same amount. If either person asks for a different arrangement, the judge will look at many details before making a decision, such as:
- Each spouse’s income, property, and debts
- Any support one spouse pays due to a past marriage
- How long the marriage lasted
- Each spouse’s age and health
- Whether one spouse needs to keep living in the family home with the couple’s child
- What each spouse expects to get from retirement plans that aren’t marital property
- Any interest one spouse has in property the other owns
- Any support one spouse provided for the other’s education or career
- Any increase in value of separate property caused by the other spouse’s efforts
- The tax effects of the property division
- Any action either spouse took to grow or protect property
- Any other detail the court deems relevant
Filing for Equitable Distribution
You must file for equitable distribution before the court finalizes your divorce. If you don’t, you lose your chance to ask the court to divide your property. After that, you only keep what’s in your name or in your possession. Without a formal property division order, anything titled in both names stays that way, even if you’re divorced.
Property Division Without Court Involvement
You and your spouse can decide how to divide your property without asking a judge. You can sign a written agreement at any point—before marriage, during separation, or after you file for divorce. The court will usually accept these agreements if both people signed them freely and the agreement is fair. You can also work out property division through a mediator or with legal help. Reaching an out-of-court agreement can save you time, money, and stress.
How a Divorce Attorney Can Help
Dealing with property division during a divorce can be stressful, but you don’t have to handle it alone. An experienced divorce lawyer can help you by:
- Gathering and reviewing financial documents from both sides
- Tracing separate property that was mixed with marital property
- Asking the court to set a fair value for property you and your spouse can’t agree on
- Working with professionals like appraisers or actuaries to value complex assets
- Filing court papers on time and following local court rules
- Drafting or reviewing your property settlement agreement
- Responding to unfair claims made by your spouse
- Requesting an unequal division if the facts support it
- Asking for temporary orders to protect property during the case
Contact a North Carolina Divorce Lawyer
If you’re dealing with a divorce in North Carolina and stressing about property division, Greene Wilson & Styron can help. We handle all types of property issues, from dividing homes and retirement accounts to tracking down separate property and high-value assets. We know the local rules and how to prepare your case the right way from the start. Contact us today to arrange your initial consultation and learn how we can help you move forward.