Property can be the source of discord in a North Carolina divorce. People will have many reasons why they want to keep certain properties from the marriage. Disputes are common and can lead to hard feelings between the parties. This is true even in relatively amicable situations.
While there are laws in place to dictate how property is divided, people can still be unsure of who is entitled to what and how the court will decide on a fair outcome. One area that can stoke confusion is divisible property. Knowing what this term means, what it encompasses and how to reach a reasonable resolution to the case is imperative from the beginning.
Understanding divisible property
A couple’s finances are still intertwined between the time they have decided to end the marriage and when the property is distributed. For example, if they have separated and have investments, joint bank accounts, credit cards in both their names or own property together, there could be disputes as to who is entitled to and responsible for what. In these circumstances, it is vital to be aware of exactly what divisible property is.
Divisible property refers to real and personal property. If marital property and divisible property rose or declined in value after they separated but before the property was divided, it will be divisible property unless actions by the spouse precipitated it. That means if there were substantial purchases, then the non-purchasing spouse is not responsible for it.
When property was held before the couple separated or value accrued – like a bonus or commission from work – then it will be divisible and the court can split it among the parties. If there was passive income from marital property like a home that rose in value after they separated, then this too will be divisible. Couples who had debt, faced finance charges and interest and it passively rose or decreased, this is also divisible property.
Being aware of how property is assessed is critical during a divorce
In family law, property distribution goes beyond determining what is marital property and separate property. This is a frequent catalyst for disagreements as the case proceeds. As with any family law matter, being prepared for every eventuality can be helpful in reaching a desirable outcome whether that is through negotiation or by going to court. Having honest, dedicated and experienced guidance can be crucial to reaching a fair resolution.