Property is divided into three categories, separate, marital and divisible property. The classification of property is critical to how the property will be divided. Separate property is typically property a spouse brought into the marriage, or directly inherited during the marriage and is not subject to distribution. So if your spouse got a large inheritance, you may not be getting half despite their promises to use it on “y’all.” Marital property is property purchased or acquired (debt) during the marriage and is typically the main category of property that we are dividing. Lastly, divisible property is the property acquired after separation, or payments on debt during separation. This property is a bit more of a question mark category and requires more detailed examination to determine if that “new car new me” is getting split or not.
North Carolina assumes that an equal split of the marital assets and the marital debts is fair and reasonable. That’s the baseline every case will begin with: equal But do you know every penny your spouse makes and where it is spent? A lot of couples maintain separate accounts for banking, for credit cards, and don’t have a strong understanding of the estate between them. Unfortunately, without requesting the right records, and knowing what to look for, you could be leaving money on the table.
Property can be divided in a number of ways, but the ‘typical’ manner is either in a Separation Agreement or in a court order through an Equitable Distribution lawsuit. The route you and your soon to be ex-spouse choose will dictate the time, money and emotional investment you put in. Some spouses are okay making a list of simple demands and walking away from the rest, regardless if that’s their fair share. Others want to value everything down to the half-bag of frozen peas in the freezer. Neither is right or wrong. An attorney can help you understand the reality of both and make the best decisions to resolve your property issues and move to the next chapter of your life.