What you need to know about equitable distribution in North Carolina
Equitable distribution is a method of distributing assets and debt from marriage. It can be done by agreement without going to court, but this is not always possible given it can be a contentious issue during separation and divorce.
There are a lot of factors that are taken into consideration when determining the equitable distribution of assets and debts between spouses.
If you’re going through a divorce in Charlotte, it’s important to make sure you hire an experienced lawyer who understands this complicated process.
This blog post explains what equitable distribution is and why it helps to hire a Charlotte Divorce Lawyer.
What does equal distribution mean?
Equitable distribution is a legal term that means fair or just. It’s the process where courts in North Carolina distribute property and debt during divorce proceedings.
It is not necessarily equal division of property, but rather an equitable distribution.
The value of Marital property is part of any claim for equitable distribution.
The value of the separate property is not.
Marital property and the fair market value of the marital property can be subject to disputes and therefore litigation. If deemed property acquired by either spouse during the marriage, for the benefit of the marriage, that could be considered marital property unless the Court determines otherwise.
Property acquired prior to marriage is not necessarily automatically deemed separate property.
That’s important because the value of the separate property is not considered as part of a claim for equitable distribution in NC.
The date of separation may become important in considering equitable distribution in NC.
That is particularly true in issues involving something referred to as Divisible Property.
What is Divisible Property?
Divisible property is marital property that underwent any appreciation or diminution in value since the date of separation.
As such, if the fair market value of the property improves after the date of separation, that may be deemed in certain circumstances to be divisible property.
Divisible property can be a contentious subject between the parties – Bill Powers, Charlotte Divorce Lawyer
The date of separation, relative to debt and the acquisition of debt in improvements of assets ordinarily thought of marital property, may also be part of the equation regarding what is divisible property.
The parties in negotiations, and the Court in the event of litigation over marital property issues, will consider the date of marriage in the determination of debts and assets, the date of separation, when the property acquired appreciates or depreciates, and the value of the marital property before and after legal separation as part of any ruling on divisible property.
Marital Settlement Agreements in North Carolina
Marital settlement agreements are one way in which equitable distribution can be accomplished. These types of arrangements often require a lot of work and negotiation between both parties, but they allow for a more flexible approach when it comes to the division of property during divorce proceedings.
When it comes to equitable distribution, the main question is what counts as marital property. North Carolina law defines this as any asset or debt acquired by either spouse during the course of a marriage.
This includes income earned from employment, investments, and business interests.
Value of Separate Property
Separate property is also taken into consideration when determining equitable distribution of assets. Separate property includes any asset or debt that one spouse owned prior to the marriage, as well as gifts and inheritances given solely to one party during the course of a marriage.
When the separate property becomes mixed with marital assets, it can sometimes be difficult to determine how much of the combined property should be considered separate.
Property and debts that were acquired during a marriage must be divided between spouses.
The division of marital property is often one of the most contested aspects of divorce proceedings, especially when there are significant differences in earnings or other factors related to each party’s financial situation.
It’s important to work with an experienced attorney who can help guide you through this difficult process.
Protecting your property
If you’re going through a divorce in Charlotte, it’s essential to make sure that your assets and debts are protected during the equitable distribution process.
A divorce lawyer can help you protect your assets and make sure that the division of property is done fairly.
It’s important to understand equitable distribution before going through a divorce in North Carolina.
Indeed, part of answering the question “Should I Get Divorced” should involve careful consideration of your assets and whether getting divorced makes financial sense for you and your loved ones.
That necessarily includes consideration of what is marital property vs separate property.
Marital property in NC is subject to the NC Equitable Distribution Laws, separate property is not.
There are times when people come to us, ask some questions, and thereafter decide to work on the marriage. And that’s OK. We are here to help provide information, not press for separation and divorce – Bill Powers, Charlotte Divorce Lawyer
So, if you’re interested in learning more about this process, we think it’s a good idea to seek legal counsel from an experienced attorney who understands how these types of cases work.
Hiring a Charlotte Family Law attorney like Bill Powers can help ensure that your property and other rights aren’t jeopardized by family law proceedings.
Factors considered in the division of property
Whether you’re filing for divorce or are trying to defend your rights in family court, it’s important to consider the factors that will be used when dividing property under equitable distribution in North Carolina.
The value of an asset can also be considered when determining how it will be divided under equitable distribution laws.
Another important factor is contributions made to a marriage by either party. This includes the financial contributions made to the marriage by either party.
It’s important that you understand what assets will be divided under equitable distribution laws before filing for divorce.
For example, if you own a business or work in an industry that is expected to grow in the future, it’s important to protect your interests by working with legal professionals who understand how equitable distribution works and can help safeguard your rights during this process.
“Fault” is not a factor
If you’re currently considering filing for divorce, it’s important to consider the issues that will be addressed during equitable distribution proceedings.
Equitable distribution is a legal process that can help ensure a fair division of property between spouses in North Carolina. This includes assets acquired before marriage as well as gifts and inheritances given to either party after the marriage has begun.
The Court does not take into consideration who is at fault or caused the marriage to end if one party files for divorce in North Carolina. NC is a “no fault” state, but it may be relevant to alimony and something called Post Separation Support or “PSS.”
This means that even though adultery can sometimes play a role in determining alimony, the Court will not consider who cheated during equitable distribution proceedings
We firmly believe it is important to protect your interests by working with legal professionals who understand how property division works and can help you safeguard your rights during this process.
“Equitable” does not always mean equal
It’s important to understand that equitable distribution is not the same as equal division.
In fact, equity refers to a standard of fairness and justice within the community. This means that spouses may have an unequal split when it comes to property division under North Carolina law.
Accurate appraisals are critical
An important consideration in North Carolina’s equitable distribution law is the division of assets, which can be a complex process that requires an accurate appraisal.
Divorce lawyers may recommend you hire valuation experts who can help determine whether certain properties are community property or separate property.
This includes homes and other types of real estate as well as businesses or investments owned by either party during the marriage
Why hire Charlotte Divorce Lawyers?
As Charlotte Divorce Lawyers, we believe it’s important to protect your rights during family law proceedings.
The process of equitable distribution can be complex and requires an understanding of how these types of cases work in order to ensure that you receive fair treatment under the law.
Facing divorce can be very scary for spouses who are currently considering legal separation and eventually filing for divorce.
However, with a quality legal team on your side, you can feel more confident knowing that they are working to protect your rights and interests as well as those of your family during this process.
Bill Powers is an experienced Charlotte Divorce Lawyer who has been practicing law in the State of North Carolina since 1992.
He is located in Charlotte, North Carolina, and works with clients throughout the surrounding areas including Indian Trail, Monroe, and Waxhaw in Union County, Mooresville, In Iredell County, and in Charlotte, in Mecklenburg County.
Equitable distribution is the process of dividing marital property between spouses. This can be a complex process that requires an understanding of how these types of cases work in order to ensure that you receive fair treatment under the NC family laws.
If this sounds intimidating and you want help enacting these principles, let us know.
Call the divorce lawyers at Powers Law Firm, P.A. to determine our availability to help. Prior to discussing your legal matter, we will conduct a “Conflict Check.”
Consultation fees apply for family law cases which may include things like separation, divorce, child custody, support, and ED – Equitable Distribution.