Equitable distribution is a central principle in North Carolina divorces. It refers to the fair division of marital property between spouses when they separate or divorce.
The intent of equitable distribution aims for a fair division of property, even if it is not always equal. Understanding the nuances of this principle can help you plan for your divorce accordingly.
Marital property will divide equitably
Marital property includes assets acquired during the marriage, regardless of whose name is on the title. This can include the family home, cars, bank accounts, retirement accounts, and personal belongings. Debts accumulated during the marriage also fall under marital property. Separate property, such as assets owned before the marriage or inherited during the marriage, remains with the original owner.
Courts carefully consider fair asset division
In North Carolina, courts consider several key factors when determining how to divide marital property. These factors include the length of the marriage, the age and health of both spouses, the income and earning potential of each spouse and any contributions one spouse made to the other’s education or career. Courts also look at the standard of living established during the marriage and the needs of custodial parents.
Divorced individuals should have a reasonable quality of life
As outlined in North Carolina’s separation and divorce policies, the goal of equitable distribution is to reach a fair outcome. For example, one spouse might receive a larger share of the property if the other spouse has higher earning potential or if one spouse sacrificed their career to care for the family. However, fair does not always mean a 50/50 split. The court will carefully evaluate the circumstances and decide what makes the most sense for each individual in their post-divorce lifestyle.
Understanding equitable distribution helps spouses navigate divorce with a clear picture of what will happen to their assets. A fair division of property allows both spouses to move forward with financial stability after the divorce.