Charlotte Divorce Lawyer Blog
What is Marital Asset Dissipation in North Carolina?
When a couple decides to end their marriage, they need to divide their assets and property, and make decisions about child custody and visitation. North Carolina requires a one-year separation period before divorce can take place. During that time, parties must resolve the settlement issues. One of the most contentious areas of settlement is the division of physical property. A concern that you may have is the potential for asset dissipation. A knowledgeable attorney will guide you through the process of separation and divorce and help with concerns of asset dissipation.
Marital Property
It is helpful to understand the concept of marital property when divorcing in North Carolina. Marital property includes any assets or debts that were accumulated during the marriage. Separate property is property that an individual owned prior to marriage. Separate property also includes gifts that one person received even during the marriage, as well as an inheritance. Marital property may consist of money, bank accounts, investments, homes, property, vehicles, and any other items. Marital property belongs equally to both parties, regardless of which person actually bought it.
Distribution of Assets
North Carolina law requires couples to live separately for a year before they can divorce. During that year, parties need to work to resolve disputes regarding property distribution. The distribution needs to be fair and equitable to both parties. During the separation period, neither party is allowed to take or use marital property for their own use. Couples cannot sell or otherwise take or devalue property for their own use if it is marital property. This unauthorized use is considered dissipation of marital assets.
Dissipation of Marital Assets
When couples divorce in North Carolina, the law requires them to equally divide marital property. However, sometimes a spouse may take some marital assets for themselves. Dissipation of marital assets occurs when a spouse takes property that belongs to both parties and uses it, sells it, or takes it as one’s own. North Carolina General Statutes 50-20(c)(11a) defines dissipation of marital assets as “acts of either party to maintain, preserve, develop, or expand: or to waste, neglect, devalue or convert the marital property or divisible property, or both, during the period after separation of the parties and before the time of distribution.”
Resolving Disputes
One of the best ways to prevent property settlement disputes is to make a list of all your marital assets at the time you separate. Obtain copies of all bank statements, investments, retirement accounts, and lists of all property that you own. This will help to prevent future disagreements. Dissipation may occur when one party feels as though they are not getting a fair share of the marital property or when they are angry. However, dissipation of marital assets can come into play when the court determines a settlement.
If you are going through a separation or divorce, you need to take steps to document and protect marital property. To learn more, call us today at Arnold & Smith, PLLC, at (704) 370-2828 to consult with our legal team.
The family law practice group at Arnold & Smith, PLLC includes four 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.law.cornell.edu/wex/marital_property
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https://www.freeimages.com/photo/usa-dollar-bills-1236276
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