If you are facing a divorce in North Carolina, you are probably gearing up for the emotional toll the process will take, along with the details of the legal proceedings that will need to occur before you can move on with post-divorce life. There is no doubt that some divorce cases are more complicated than others, with potential issues like child custody, child support, alimony and property and debt division to address. But, even the most basic and animosity-free divorce will need to address the married couple’s assets and debt.
The concept of “equitable distribution”
If you and your soon-to-be ex-spouse cannot agree on how assets and debt should be divided, the legal concept of “equitable distribution” will come into play in your divorce case. For those of our readers who are unfamiliar with the concept, the basic is this: All of your “marital” property and debt will be subject to being divided up in a way that is “fair” to the divorcing spouses.
So, what is “fair”? That subjective question is what many divorcing spouses actively try to avoid by attempting by all means to come to an agreement on their own on how assets and debts should be divided. But, if the court has to get involved in making a decision on dividing assets and debts in a “fair” manner, a variety of factors will likely be considered, such as: the incomes of the two parties; each party’s health or earning power; how long the marriage lasted; what each spouse contributed to the marital assets; and even the tax implications that could arise post-divorce, among other potential factors.
When you are preparing for a divorce in North Carolina, thinking about property and debt division will be a crucial part of how stressful the legal process will be and how your financial health will stabilize in post-divorce life. Be sure to give the concept of “equitable division” some serious thought.