Property Division in a Greensboro Divorce: How Courts Handle Marital Assets

When a marriage ends, one of the hardest and most emotionally draining parts is the division of assets. North Carolina law states that, unlike community property, where assets are evenly divided, equitable distribution is focused on reaching a fair outcome based on the contributions and circumstances of both spouses. 

Understanding what North Carolina means by “equitable” and how the courts decide what constitutes a fair division of marital assets are both vital when it comes to navigating this unpleasant phase of separation. To talk to a North Carolina family law attorney, give us a call today. 

Equitable Distribution in North Carolina

Equitable distribution is the “equitable,” though not always equal, division of marital assets between a husband and wife during a North Carolina divorce or separation. North Carolina courts are required by law to divide property equitably. Simply put, this means that the court’s goal is to be fair in its division of the assets, predicated on each partner’s unique circumstances and the classification of the assets. 

Although many states apply a “community property” policy and split assets down the middle, North Carolina takes a more adaptable view by taking numerous factors into account when determining what is equitable.

Separate Property vs Marital Property 

Before a North Carolina court distributes marital property, it must first be split into one of two categories: separate property and marital property. 

• Separate Property: Property that was acquired after the separation, prior to the marriage, gifts given to a specific spouse during the marriage, and inheritances are deemed the spouse’s separate property. Rather than being divided during the separation, separate property stays with its original owner. Complications can, however, arise when separate property gets mixed in with the couple’s marital property, a circumstance known as the commingling of assets. 
• Marital Property: Any property acquired by a husband and wife during their marriage is, for the most part, viewed as marital property. This includes transportation, real property, investments, bank accounts, debts, and retirement. When it comes to equitable distribution, marital property is any property that was acquired from the day the marriage took place until the day of separation. Inheritances and personal gifts usually aren’t considered marital property, unless they’ve been combined with shared assets. Everything that qualifies as “marital property” under North Carolina law is subject to equitable distribution and will be divided fairly between the spouses.

How is “Fair” Decided in North Carolina Divorces? 

While a 50/50 split might seem like a reasonable jumping-off point, North Carolina courts can decide that an unequal division is more appropriate based on the facts of the case. Similarly, if the involved parties can manage to reach a private agreement, they can divide their assets any way they fancy, even if it is not 50/50. When deciding the most equitable way to split marital property, North Carolina courts must take a variety of factors into account. Those factors include:

• The physical and mental health of both spouses: A spouse’s health may affect their financial stability, earning ability, and long-term needs.
• The custodial parent’s need for the marital home or household goods: If the couple has children, maintaining a stable home environment is often an important consideration.
• The duration of the marriage: Longer marriages generally involve deeper financial interdependence and shared contributions.
  
• Each spouse’s contributions to the marriage: This includes both financial input and non-financial support such as homemaking, childcare, and maintaining the household.
• Any direct or indirect contributions to the other spouse’s education, career, or earning potential: Support that helped one spouse advance professionally can influence how property is divided.
• The income, property, and liabilities of each spouse: The court reviews the financial circumstances of both parties to ensure a fair and balanced distribution.

It is worth mentioning that marital transgressions, like adultery, typically don’t impact the division of property. Financial misconduct, however, like hiding assets, could potentially affect the court’s decision. 

What Are Hidden Assets?

It sometimes happens that one spouse tries to conceal assets from the other as they transfer their marital funds into undisclosed accounts in preparation for their separation. For example, if one spouse attempts to hide money by moving it to an offshore bank account, the court can provide compensation by awarding the other spouse a greater portion of the remaining marital assets.

In these cases, forensic accountants are often called upon to locate hidden assets, ensuring that the division of property is equitable 

The Law Office of Stephen E. Robertson, PLLC

Equitable distribution in a North Carolina divorce can be complicated, especially those involving significant debts or assets are involved. Whether in court, mediation, or negotiation, you need to know your rights and understand how the law applies to your unique separation. Working with a mediator or an experienced North Carolina family law attorney can help ensure that your interests are protected and that your property is fairly divided. 

If you are facing a divorce in North Carolina and have questions or concerns about the division of your marital property, contact the North Carolina family law attorneys at the Law Office of Stephen E. Robertson, PLLC, at (336) 370-6760 or reach out online to schedule a case review and find out what we can do for you.