Charlotte Divorce Lawyer Blog
When a couple decides to divorce, one of the main areas of dispute is often the division of property. In North Carolina, the law states that in a divorce, couples must divide their marital assets in a manner that is fair and equitable. Sometimes, spouses may argue over their assets, particularly those that they owned before they got married. It is helpful to understand the differences between separate and marital assets when dividing your property. Protecting your personal assets is a process that should begin before you get married.
Identify Your Assets
It is essential to understand which assets are yours alone and which are considered marital property. Separate property is generally anything you owned prior to marriage. Document your personal assets with receipts, titles, and photos. In particular, you will want to secure proof of purchase date to show that you bought the asset prior to your date of marriage.
Marital property is generally considered to be anything you and/or your spouse acquired after you got married. There are a couple of exceptions. An inheritance or gift that was made to one spouse during the marriage is usually considered separate property. Also, if a prenuptial agreement is in place, it usually takes precedence. Couples should discuss personal assets prior to marriage.
Track Asset Value
Over time, many assets appreciate in value. Therefore, the current value of your personal property could be significantly more than it was when it was first acquired. In addition to maintaining a list of your personal assets, take the time to research and update it every so often. This is necessary for assets such as stocks and retirement accounts. Pay particular attention to the value at the time of separation.
Keep Personal Assets Separate
It is important to keep your personal assets separate from marital assets after you get married. One of the problems with personal assets is that if you commingle them with marital assets, they can become marital property over time. Portions of a personal asset can be considered divisible property, such as when both spouses contribute to mortgage payments, even when the home was purchased by only one spouse prior to the wedding.
Avoid Hiding Assets
Sometimes, a spouse may feel the need to hide or sell assets during a divorce. This is largely due to the belief that specific assets are separate and should not be equally distributed as part of marital property in divorce. However, hiding assets can work against you because the court generally looks at this as an attempt to get more than your fair share, and may hold it against you.
Sign a Prenuptial Agreement
To ensure the protection of personal property you owned prior to marriage, consider signing a prenuptial agreement. A prenup is a legal contract that specifies how assets and property are to be distributed if the marriage ends. A prenup also addresses other potential separation issues. You can update a prenup during the marriage with a postnuptial agreement. An experienced attorney will assist you in implementing a prenuptial agreement that will protect your assets.
To learn more about protecting your assets in divorce, call us at Arnold & Smith, PLLC, at (704) 370-2828 to request a consultation.
The family law practice group at Arnold & Smith, PLLC includes multiple Board-Certified Family Law specialists and one Child Welfare Law specialist, as well as several attorneys with many years of family law experience that are committed to providing a powerful voice to individuals facing the often-tumultuous issues in this area of law. The range of issues our family law clients may be facing include pre- and post-nuptial agreements; separation agreements; post-separation support; child support (both temporary and permanent); absolute divorce; divorce from bed and board; military divorce; equitable distribution of assets; child custody (both temporary and permanent); retirement benefits and divorce; alimony and spousal support; adoption; and emancipation. Because this area of the law is usually emotionally charged and complicated, the family law attorneys at Arnold & Smith, PLLC act with the utmost dedication to ensure that each client understands his or her options, and then act to achieve the best result possible for that client’s particular situation.
Source:
https://www.ncleg.net/EnactedLegislation/Statutes/HTML/BySection/Chapter_50/GS_50-20.html
https://www.law.cornell.edu/wex/prenuptial_agreement
See Our Related Video from our YouTube channel:
https://www.youtube.com/user/ArnoldSmithPLLC?feature=watch
See Our Related Blog Posts:
Separate Property in Divorce in North Carolina
Do We Need a Prenuptial Agreement?