The division of property and debt in North Carolina is based upon the state’s laws of equitable distribution. North Carolina statutes provide that property and debt acquired during the marriage must be divided fairly between both parties. While “equitable” does not automatically mean equal, North Carolina law presumes an equal division as the starting point. To achieve an unequal division, you must convince the court using only the specific circumstances outlined in the statutes as determining factors.
Common Questions About Property Division in North Carolina
What is marital property?
Marital property includes all property and debts acquired from the date of marriage until the date of separation.
What is separate property?
Separate property is any property acquired before the date of marriage or after the date of separation. This can also include property acquired during the marriage if the property was acquired through certain avenues, such as an inheritance.
How do I get an unequal split of our assets?
When dividing property, a North Carolina judge considers multiple factors including:
- the age and health of each spouse
- each spouse’s individual incomes and debts
- whether the custodial parent needs the family home or household items
- any retirement expectations from separate property
The statutes also include a catchall provision allowing judges to weigh any factor they deem just and proper. However, marital misconduct such as adultery cannot be considered in property division decisions.
My spouse and I still live together. Can I file for the court to divide our property?
No. You must be separated before being able to file for property division.
If I file for property division, will I be divorced?
No. A claim for equitable distribution (property division) does not dissolve a marriage. You must file a claim for absolute divorce to dissolve a marriage. However, it is important to file a claim for equitable distribution before dissolving your marriage. If your marriage is dissolved before a claim for equitable distribution is filed, you will have waived your claim for equitable distribution.
Do I have to file a lawsuit to divide our property?
No – you can divide your property and debts by negotiating a separation agreement instead of going to court. This approach gives you control over the outcome while keeping your financial matters private and out of the public record.
My spouse took all of our money. What can I do?
You may be able to file a Motion for Interim Distribution. This is a way to ask the court to divide marital assets before equitable distribution is complete.
Final Thought
Property division in North Carolina is complex, and the decisions you make during divorce will impact your financial future for years to come. Whether you’re negotiating a separation agreement or heading to court, having an experienced family law attorney by your side ensures your rights are protected and your interests are represented.
Listen to our Welcome to Splitsville podcast episode: How Can a Certified Divorce Financial Analyst Help in Your Divorce to learn how a CDFA can help with property division.