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Home / Division of Property in a North Carolina Divorce

Division of Property in a North Carolina Divorce

North Carolina follows the "equitable distribution" system for dividing assets and debts in a divorce. This system seeks a fair division of marital property, considering various factors.

Key Concepts

1. Marital Property

  • Definition: Includes most property acquired by either spouse during the marriage, such as income, real estate, and personal property.
  • Division: The court aims to divide marital property in an equitable manner, considering factors such as the length of the marriage, each spouse's income, and contributions to the marriage.

2. Separate Property

  • Definition: Includes property owned by a spouse before marriage, gifts and inheritances received solely by one spouse, and personal injury awards.
  • Division: Separate property remains with the owning spouse and is not divided in the divorce.

Factors Considered in Property Division

The court considers several factors when dividing marital property, including:

  • Length of Marriage: The duration of the marriage is a significant factor in determining the distribution.
  • Income and Earning Capacity: Each spouse's income, earning capacity, and employability.
  • Contributions to the Marital Estate: Including homemaking and child-rearing.
  • Age and Health: The age and physical/mental health of each spouse.
  • Custodial Parent Needs: The need of a custodial parent to occupy or own the marital residence.
  • Spousal Support Obligations: Any spousal support obligations from previous marriages.
  • Retirement Benefits: The value of retirement benefits accrued during the marriage.
  • Debts and Liabilities: Any marital debts and liabilities.
  • Tax Implications: The tax consequences of property distribution.

Special Considerations

  • Retirement Benefits: Retirement and pension benefits accrued during the marriage are considered marital property and subject to equitable distribution.
  • Business Interests: Business interests are subject to division based on their valuation and the portion deemed to be marital property.
  • Debts: Debts incurred during the marriage are typically considered marital obligations and are divided between the spouses.
  • Real Estate: The division of real estate may involve complex valuation to ensure a fair distribution.

Conclusion

The division of property in a North Carolina divorce follows equitable distribution principles, aiming for a fair and just division. Given the complexities involved, especially with high-value assets or mixed property types, it's beneficial to seek legal advice.

A legal professional can help navigate the division process, ensuring that your rights are protected and that the division of property is handled fairly and equitably.

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