Getting a divorce in Charlotte, NC can be a daunting experience, especially regarding assets and debts division. There are several factors to be considered in a divorce proceeding. One is how the assets and debts acquired during the marriage will be divided. This decision often poses a problem, especially where parties cannot agree on each spouse’s assets.
As expert Charlotte family law lawyers, we can help you negotiate to ensure a fair and equitable distribution of assets during the divorce process. This article aims at explaining how assets and debts can be equitably divided between divorcing parties in Charlotte, North Carolina.
Equitable Distribution in Charlotte, NC
Equitable distribution is a legal theory guiding how property acquired during a marriage should be distributed between a divorcing couple. North Carolina is an equitable distribution state. This means that the court will fairly divide the assets and debts equally between spouses after the divorce in Charlotte. This is especially applicable where parties cannot agree on how their assets should be divided.
Is There a Distinction Between Marital and Separate Assets?
In North Carolina, when the court grants a request for equitable distribution, it must first identify the assets owned by parties before assessing their value. This is done by identifying and categorizing all the assets owned by parties into marital and separate assets. This lets the court know the marital assets, as North Carolina law allows separate assets to be exempted from equitable distribution.
Marital assets are assets acquired or earned during the sustenance of the marriage until the date of separation. Separate assets include assets acquired by each spouse, inherited or gifted before the marriage. Assets acquired before marriage becomes your sole possession.
The court will presume that all assets acquired by parties are marital assets unless evidence presented by a spouse rebuts the presumption. Once marital assets are determined, the court will award equal division (50/50) between each spouse.
Disputes over marital and separate assets often have a significant impact on divorcing parties. It is common for a spouse to maliciously claim assets acquired before marriage as marital assets. To avoid such difficult situations, it is best to consult an experienced Charlotte family law lawyer.
Can I File a Motion for Equitable Distribution?
Under North Carolina law, a spouse can file a Motion for equitable distribution. It is immaterial whether you have a prenuptial or postnuptial agreement. In addition to filing a motion, you can also seek injunctive relief. The injunctive relief is sought to prevent the waste, disappearance, or conversion of the marital assets. This means that if your spouse is destroying or using up the assets to prevent you from being entitled to it, the court can issue an injunctive order to restrain your spouse from such actions.
Can Parties Decide the Division of Asset by Mutual Agreement?
Absolutely! Parties can mutually agree on how assets and debts will be divided between them without the intervention of a third party. Where there is a mutual agreement, the divorcing parties will not be subject to the equitable distribution law of North Carolina. However, where parties disagree independently, the law will apply.
Factors That Impact Equitable Distribution in Charlotte, NC
There are several factors to be considered in deciding whether to divide marital assets and debts equally between divorcing parties. The court will only refrain from dividing the assets equally where other factors make a strong case for unequal distribution. These factors include:
- The income, assets, and liabilities of both spouses
- The length of the marriage
- The age, mental and physical health of both spouses
- The need of the spouse who has custody of the child(ren) of the marriage
- A spouse’s business or unvested pension interests
- The financial contribution of each spouse during the marriage to the marital assets
- The difficulty in deciding the value of a component asset
- The liquidity of the marital assets and debts
- The tax consequences of each spouse if the marital assets are liquidated
- Any other factor that the court finds proper and just
Contact Our Charlotte Family Law Lawyers Today!
Are you or a loved one facing a divorce in Charlotte, NC? Are you worried about losing your hard-earned assets? If yes, you need an experienced Charlotte Family law lawyer to fight for you.
Our Charlotte family law attorneys at Waple and Houk are skilled and experienced in fighting on behalf of our clients to ensure they receive a fair and just distribution of assets in a divorce proceeding. We will do the same for you. So contact us today for a confidential consultation on your case.