Property Division

Property division is often one of the largest parts of a divorce case. To divide marital assets and debts, North Carolina uses a method called equitable distribution. “Equitable” means “fair”, so an “equitable distribution” means a fair distribution.

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In a marriage, property owned by one or both spouses is categorized one of two ways:

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• Marital property – subject to equitable distribution in a divorce

• Separate property – not subject to equitable distribution

 

Separate property falls into three categories:

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1. Property owned by one spouse prior to the date of marriage

2. Inherited property

3. Property acquired by gift from someone other than one’s spouse

 

North Carolina law assumes that a fair division of marital property is an equal division between the parties (i.e., a 50/50 split) unless an equal division would not be fair for some reason. There are a number of things a judge considers when deciding what a fair division is. An experienced family law attorney can help walk you through this process and explain your rights and options.

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If Both Spouses Agree

If both spouses are able to agree on how to division the marital assets and debts, the parties may be able to use a separation agreement. This agreement, or contract, spells out who gets what, and it can cover everything from bank accounts to retirement assets to physical property (like furniture). It can also cover who is responsible for paying off debts such as mortgages or credit cards.