Partnership Chair
Divorce is never just about ending a relationship. It also involves untangling shared finances and determining what each person will walk away with. Two of the most significant issues in North Carolina divorces are property division and spousal support. Knowing how these processes work can make the road ahead less stressful and help you make informed choices.
How Property Division Works in North Carolina
North Carolina follows an equitable distribution system, meaning marital property is divided fairly, though not always equally. Courts start with a presumption that a 50/50 split is fair, but judges may adjust the division based on individual circumstances.
The process generally involves:
- Identifying all assets and debts – Each spouse must disclose everything they own or owe.
- Classifying assets as marital or separate property – Only marital property is divided.
- Valuing the assets – Assigning accurate values ensures fairness.
- Distributing property – The court or the parties decide how to split the assets and debts.
Separate vs. Marital Property
Understanding what belongs in the marital estate is key.
- Separate property usually includes assets you owned before marriage, inheritances, and gifts given solely to you. These remain yours as long as you kept them separate.
- Marital property includes most assets and debts acquired during the marriage, such as income, real estate, retirement accounts, and credit card balances.
If separate property becomes mixed with marital property—for example, depositing an inheritance into a joint account—it may be treated as marital and subject to division.
Valuation of Different Assets
Determining the value of marital property can be straightforward for some assets and more complex for others.
- Real estate: Typically requires an appraisal to determine fair market value.
- Businesses or professional practices: May call for a business valuation expert who considers revenue, assets, and goodwill.
- Retirement accounts: Valued based on account statements, but may need actuarial calculations for pensions.
- Personal property: Items like vehicles, jewelry, or furniture are often valued at resale rather than purchase price.
Having accurate valuations ensures neither spouse gets shortchanged in the final distribution.
Alimony in North Carolina
Alimony, also called spousal support, is not automatic. Courts weigh many factors to decide if support is appropriate and, if so, how much and for how long.
Key considerations include:
- Each spouse’s income and earning capacity
- The length of the marriage
- Standard of living established during the marriage
- Age, physical health, and mental health of both parties
- Contributions one spouse made to the other’s career or education
- Marital misconduct, such as infidelity
Support may be temporary or long-term, depending on circumstances. For example, if one spouse gave up a career to care for children, support may continue until they can reasonably re-enter the workforce.
Negotiating a Fair Outcome
While courts provide a framework, many couples resolve these issues through negotiation or mediation. This approach often gives both parties more control and can reduce conflict. Even in contested cases, understanding how property and support decisions are made helps you prepare for settlement discussions or court hearings.
Protecting Your Interests During Divorce
Dividing property and determining spousal support are some of the most important aspects of divorce in North Carolina. Knowing the difference between marital and separate property, how assets are valued, and what factors influence alimony helps you approach negotiations with clarity.
At Patrick, Harper & Dixon, LLP, we will guide you through each step with care and attention to detail. If you are facing questions about property division or spousal support, contact us to discuss your situation and learn how we can help you move forward.
Frequently Asked Questions
What happens if my spouse hides assets during property division?
If one spouse fails to disclose assets, the court can reopen the case and impose penalties. Judges take concealment seriously, and the hidden assets may be awarded to the other spouse.
Can spousal support be modified after the divorce is final?
Yes. If there is a significant change in circumstances, such as job loss, illness, or a substantial increase in income, either spouse can ask the court to review and adjust the support order.
How long does the property division process take in North Carolina?
The timeline varies. If spouses reach an agreement through negotiation or mediation, the process may take only a few months. If the case goes to trial, it can extend much longer due to court schedules and the need for formal valuations.
