Property Division and Equitable Distribution
Divorce involves many complex decisions, but one of the most significant is how to divide marital property between you and your spouse. In North Carolina, property division is guided by the principle of equitable distribution, which aims to ensure that both parties receive a fair share of the marital assets and debts. However, “equitable” does not always mean “equal,” and navigating this process can be challenging without knowledgeable legal support.
At Doyle Divorce Law, our family law attorneys understand the emotional and financial stakes involved in determining separate and marital property resolutions. We are dedicated to helping you secure a fair and just outcome when dividing marital property in North Carolina.
What is Equitable Distribution?
Equitable distribution in North Carolina is the process of fairly dividing marital and divisible property during a divorce. Unlike an equal split, equitable distribution considers various factors—such as the length of the marriage, each spouse’s income, and contributions—to ensure a just or equal division of assets and debts.
Marital vs. Separate Property
Under North Carolina law, marital property includes any property acquired during the marriage, while separate property, like assets obtained before marriage or through inheritance, remains with its original owner. At Doyle Divorce Law, our equitable distribution attorneys are committed to protecting your financial interests and achieving a separation agreement that includes fair distribution of property owned by you and your spouse.
Dividing Property and Marital Assets in North Carolina
If you’re wondering how do we divide our marital property during the divorce process or what constitutes marital property, the divorce attorneys at The Doyle Law Group, P.A. are here to help. We have been helping North Carolina couples handle equitable distribution and property division for over twelve years.
In North Carolina, property in separation and divorce is controlled by North Carolina General Statute § 50-20.
In a divorce, North Carolina courts define “property” as the following types of assets:
Factors Considered in Equitable Distribution
In North Carolina, equitable distribution is designed to ensure a fair division of marital property during a divorce. However, “fair” does not necessarily mean “equal,” and the court takes into account a variety of factors to determine what is just and reasonable for both parties.
Length of the Marriage
The duration of the marriage plays a significant role in equitable distribution. Generally, longer marriages may result in property divided equally, especially if one spouse has been financially dependent on the other. In shorter marriages, the division may more closely reflect each spouse’s individual contributions to the marriage.
Income and Earning Potential of Both Spouses
The court considers the current income and future earning potential of each spouse. If one spouse has significantly higher earning power, the court may award a larger share of marital assets to the other spouse to balance the economic disparities and help ensure financial stability after the divorce.
Contributions to the Marriage
Both financial and non-financial contributions are evaluated. This includes direct financial contributions, such as income earned, as well as non-financial contributions, like homemaking, child-rearing, and supporting the other spouse’s career. The court recognizes the value of both types of contributions when dividing property.
Age and Health of Both Spouses
The age and health of each spouse are important considerations. A spouse who is older or in poor health may receive a larger share of marital property to provide for their future needs, particularly if they have limited earning potential or require ongoing medical care.
Needs of Custodial Parents
If one spouse is the custodial parent of the couple’s children, the court may consider the children’s needs when dividing property. This could involve awarding the family home to the custodial parent to provide stability for the children, as well as ensuring that the parent has sufficient financial resources to care for them.
Tax Implications
The court takes into account the tax consequences of property division for both parties. This includes the impact of transferring assets, capital gains taxes, and the tax treatment of alimony payments. The goal is to divide property in a way that minimizes the tax burden for both spouses.
Dissipation of Assets
If one spouse has intentionally wasted, misused, or hidden marital assets leading up to or during the divorce, the court may adjust the division of property to account for this behavior. Dissipation of assets or financial misconduct can result in the responsible spouse receiving a smaller share of the remaining marital property.
Other Relevant Factors
The court has the discretion to consider any other factors it deems relevant to achieving a fair distribution of property. This could include the presence of prenuptial or postnuptial agreements, any special needs of the spouses, marital misconduct, and the overall financial situation of each party.
At Doyle Divorce Law, we are committed to advocating for a property division that reflects your contributions and needs. Our marital estate division attorneys will work closely with you to ensure that all relevant factors are thoroughly considered, helping you secure a fair and equitable distribution of your marital assets.
Does Equitable Distribution Affect Alimony and Child Support?
Equitable distribution can affect both alimony and child support, though they are separate legal matters. The division of marital property through equitable distribution may impact the financial situation of both spouses, which in turn can influence alimony and child support decisions.
Spousal Support Issues
The court considers the financial resources and needs of each spouse when determining alimony. If one spouse receives a significant portion of marital assets through equitable distribution, it could reduce their need for alimony. Conversely, if a spouse is left with fewer assets, they may be more likely to receive alimony to help maintain their standard of living.
Child Support and Child Custody
While equitable distribution doesn’t directly dictate child support amounts, the financial outcomes from property division can influence a parent’s ability to contribute to child support. North Carolina uses a specific formula to calculate child support, primarily based on income, but the overall financial picture post-divorce—including assets and debts assigned during equitable distribution—can indirectly affect these payments.
At Doyle Divorce Law, we ensure that all aspects of your financial situation, including property division, alimony, and child support, are carefully considered to protect your interests and provide for your future.
Divide Marital Property Fairly with Legal Representation from Doyle Law
Navigating the complexities of property division during a divorce can be overwhelming, but you don’t have to face it alone. At Doyle Divorce Law, our experienced family law attorneys are dedicated to ensuring that your marital assets are divided fairly and equitably. We understand the nuances of North Carolina’s equitable distribution laws and will fight to protect your financial future.
Don’t leave your property settlement to chance—secure the legal representation you deserve. Contact Doyle Divorce Law today by calling us at (919) 301-8843 or by filling out the form below to schedule a consultation and take the first step toward a fair resolution.
