In North Carolina, courts use a process called equitable distribution to divide property. Under this system, a judge decides how to split assets and debts in a way that is fair.
However, fair does not always mean a simple 50/50 split. To have a fair split, you must identify the specific financial traps that often complicate the legal process.
What are common issues to watch out for?
The process of dividing a household often reveals specific problems that can lead to an unfair outcome. You should pay close attention to these four common issues:
- Classifying separate versus marital property: It can be tricky to determine which properties belong to both you and your ex-spouse and which belong to only one person. Marital property includes almost everything bought during the marriage. Separate property includes items owned before the wedding or gifts given only to one spouse.
- Commingling assets: This problem occurs when you mix separate property with marital property. If you put money from a personal inheritance into a joint bank account, the law may now see that money as belonging to both spouses.
- Valuing specialized assets: You cannot always easily tell what a business, a professional license or a pension is worth. These items require a professional appraisal to find their true value.
- Hiding assets: Some spouses try to hide money by underreporting income or transferring cash to friends. It is critical to submit bank statements and tax returns to make sure no assets stay hidden.
These issues could lead to a loss of personal wealth. Addressing these points early ensures that the final list of properties is complete and accurate.
Fight for fair distribution of assets after a divorce
You deserve a financial settlement that allows you to move forward with your life. The way you divide your house, your savings, and your retirement will determine your financial health for many years. Taking the time to fight for an honest and fair division is crucial to protect your rights and your finances.