Charlotte Divorce Lawyer Blog
What is the Difference Between Marital Property and Separate Property?
Divorce requires couples to divide their assets and debts equitably. While this may sound easy, it’s not always that simple. Couples need to properly evaluate and categorize assets and debts to ensure that they get distributed fairly. In order to begin the process, you need to have a good understanding of how to sort marital and separate property. A knowledgeable Charlotte divorce attorney will guide you through the process.
Defining Marital Property
Marital property is property that belongs to both partners. North Carolina law defines marital property as “all real and personal property, including debts, acquired by either or both spouses during the course of the marriage and before the date of separation, which is owned as of the date of separation”. When you review and sort through your property, you need to know that it includes bank accounts, retirement accounts, assets, income, homes, and more. These assets are considered to belong to both parties, no matter what name is on the title.
What is Separate Property?
Separate property consists of assets that either party purchased or owned prior to marriage. It also includes any gifts or inheritances made to just one spouse during the marriage. Separate property may include money, real estate, or other assets. Generally, if the court deems property as separate, it is not subject to distribution in a divorce. However, there are some exceptions, such as when pre-marital assets are commingled during marriage. Another exception is when assets are changed to dual ownership.
Divisible Property
Some types of property may change in value over time. An asset, such as a home, may change value during the time between separation and divorce. This type of property is classified as divisible for purposes of equitable distribution. It may include real property, investments, stocks, and others. The value may appreciate or depreciate. The value of divisible property is to be calculated at the time of divorce and is equitably distributed between spouses.
Equitable Distribution of Assets in North Carolina
It is important to know the exact date of your separation in order to determine the property that is to be distributed. North Carolina requires couples to live apart for a period of at least one year before they may seek a no-fault divorce. While you are not required to have a legal separation, you must be able to show the date that you and your spouse actually separated. This date becomes important when you categorize your property for the purpose of distribution. Unless you have a prenuptial or postnuptial agreement in place, North Carolina law requires you to divide your marital property in an equitable manner. Your attorney will help you gather the documentation you need and will assist in making the divorce easier and less stressful.
One of the first steps towards divorce is to hire an experienced attorney. Our compassionate team is here to answer your questions. Call us today at Arnold & Smith, PLLC, at (704) 370-2828 to request a consultation.
The family law practice group at Arnold & Smith, PLLC includes two 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.nccourts.gov/help-topics/divorce-and-marriage/separation-and-divorce
See Our Related Video from our YouTube channel:
https://www.youtube.com/user/ArnoldSmithPLLC?feature=watch
See Our Related Blog Posts:
What Does Equitable Distribution Mean in North Carolina Divorce?