EQUITABLE DISTRIBUTION IN NORTH CAROLINA

• Marital property is all property acquired by either or both spouses during the marriage, prior to the date of separation that does not fall under the definition of separate or divisible property. The presumption is that all property acquired during the marriage is marital property unless proven otherwise.
• Separate property is real or personal property that either spouse owned prior to the marriage or inherited or received as a gift during the marriage.
• Property is classified as divisible under several circumstances. The most common examples of divisible property are the change in value of property and passive income such as interest and dividends from marital property after the date of separation but before final distribution.
• Mixed property has characteristics of two of more classifications. An example would be a home that was in the wife’s name prior to marriage. After marriage, the home is still classified as her separate property. However, if marital funds are then used to make mortgage payments, the increase in value would be marital property.

What Factors Does The Court Consider When Determining Equitable Distribution?

In North Carolina, the court considers a few factors to ensure that marital property is divided fairly:

• Duration of the Marriage: Longer marriages may lead to a more equal distribution of property.
• Prenuptial or Postnuptial Agreements: If a valid prenuptial or postnuptial agreement exists, the court will review its terms and consider its impact on property division.
• Income and Earning Potential: The income and earning potential of each spouse, including their education, skills, and future earning capacity are all assessed.
• Contributions to the Marriage: The court considers the contributions made by each spouse to the acquisition, preservation, or appreciation of marital property. This includes financial contributions, homemaking, childcare, and support of the other spouse's career or education.
• Standard of Living: The court aims to preserve this as much as possible for both of the parties.
• Age and Health of Each Spouse: The age, physical health, and mental well-being of each spouse are taken into consideration to ensure a fair distribution that takes into account their respective needs.
• Any Wasteful Dissipation of Assets: If one spouse has wasted marital assets through excessive spending, gambling, or other means, it may affect the way property is divided.
• Debts and Liabilities
• Tax Consequences
• Other Relevant Factors: The court has the discretion to consider any other relevant factors that may impact the equitable distribution of marital property.

If you require guidance regarding equitable distribution in NC, it is advisable to seek the assistance of a knowledgeable Charlotte equitable distribution lawyer. By working with a seasoned attorney, you can expect dedicated sound counsel and representation backed by years of experience.  At Law Office of Kelli Y. Allen, PLLC, we go the extra mile to ensure you get personalized attention and effective advocacy in your property division case. With our years of experience in family law and commitment to client satisfaction, we are ready to assist you in achieving a fair and equitable distribution of marital property. Speak with an equitable distribution attorney in Charlotte today.

Determining Fair Market Value

• The income, property, and liabilities of each party at the time the division of property is to become effective.
• Any support obligation from a prior marriage.
• The duration of the marriage
• The age and physical and mental health of both parties.
• The need of a parent with custody of a child or children of the marriage to occupy or own the marital residence and to use or own its household effects.
• The expectation of pension, retirement, or other deferred compensation rights that are not marital property.
• Any contribution made by one spouse to help educate or develop the career potential of the other spouse.
• Any direct contribution to an increase in value of separate property which occurs during the course of the marriage.
• Whether the property is liquid.
• The tax consequences to each party.
• Acts of either party to maintain, preserve, develop, or expand; or to waste, neglect, or devalue property, during the period after separation of the parties and before the time of distribution.