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Property Division & Equitable Distribution

Dividing property during a divorce can be a very challenging process. Both parties often have very different views on what belongs to them. The state of North Carolina follows the principle of “equitable distribution,” meaning property should be divided fairly, though not necessarily equally. A skilled property division lawyer from Wilson, Reives & Doran can be a crucial asset in negotiating a fair division of property, working closely with the opposing lawyer to help you and your spouse reach an agreement.

When an agreement can’t be reached, the court may step in and make decisions on your behalf. It’s always preferable to avoid this outcome. Our attorneys are committed to providing you with the best advantage for a favorable resolution.

What is Equitable Distribution?

Equitable distribution is the legal process whereby the court identifies, classifies, and values the assets acquired by both spouses during their marriage, and then distributes these assets between them. The laws surrounding equitable distribution in North Carolina are continually evolving.

The state recognizes three categories of property:

  • Marital Property: This encompasses all real and personal property obtained by either or both spouses during the marriage and before the date of separation. The value of marital property is generally assessed as of the separation date.
  • Separate Property: This includes all real and personal property acquired by one spouse before the marriage, after the separation date, or received as an inheritance or gift during the marriage.
  • Divisible Property: This refers to any increases or decreases in the value of marital property that occur after the separation date but before the property is distributed. Divisible property is valued at the time of distribution.

While North Carolina law presumes that property and debts acquired during the marriage should be divided equally between both spouses, “equitable” does not always mean “equal.” There is a strong presumption favoring an equal split of marital assets, suggesting each spouse should receive half of the marital estate. However, the law allows for specific factors where a spouse can seek an unequal distribution, potentially receiving more than half of the assets.

How Does Equitable Distribution in North Carolina Work?

If you and your spouse cannot reach an agreement on your own or through negotiation, the court will determine how to divide your marital property. Marital property includes assets accumulated jointly during the marriage. Separate property—such as inheritances, gifts to one party, or property acquired before the marriage or after separation—may not be considered.

Since North Carolina follows the principle of “equitable distribution” when dividing marital property, the court aims for a fair and just division. But this isn’t necessarily a 50/50 split, although that is common. In some instances, an equal division may not be appropriate due to various factors.

The court considers several factors when deciding on property division, including:

  • Debts
  • Ages of both parties
  • Health conditions of the parties
  • Length of the marriage
  • Incomes and assets of each party
  • Contributions each party made to the marital property
  • Whether a spouse improperly squandered any property
  • Tax consequences

Hidden Assets in Divorce Proceedings

In property division cases, each party must fully disclose all separate and community property to each other and the court. Both parties have a fiduciary duty during a divorce, meaning neither can sell, alter, destroy, or otherwise affect marital property without the other’s and the court’s knowledge and consent.

However, some individuals may attempt to hide assets from their spouses to achieve a more favorable outcome. For example, a spouse might:

  • Intentionally omit separate property from reports to you and the court
  • Use an asset valuation professional to undervalue assets
  • Liquidate funds in exchange for artwork or other material assets they intend to hide and sell after the divorce
  • Channel business revenue through an employee or friend to appear as though they earn less
  • Take out “loans” from a friend they don’t intend to repay to seem financially strained
  • And other similar actions

If you suspect your spouse is hiding assets, consult your attorney. They can help you work with professionals like forensic accountants to uncover hidden assets, report them to the court, and strive for a fair judgment in your property division dispute.

Consult a Property Division Attorney in Sanford, NC

As you navigate property division during a divorce, it’s important to have an experienced divorce and property division attorney on your side who will protect your interests and help you achieve a fair outcome. Our lawyers at Wilson, Reives & Doran have the knowledge and resources necessary to get you the property and assets you deserve after a divorce. Contact us today to discuss your situation and what we can do for you.

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