Posted by gina on Apr 17, 2012 in Property Settlement | 0 comments
In North Carolina, the law that governs the division of assets and debts in the context of divorce is called Equitable Distribution. There is a presumption under the law that an equal division of the net marital estate (the marital assets less the marital debts) is fair and equitable. There are, however, a number of factors that can justify an unequal division of the net marital estate in favor of one spouse over the other. A qualified attorney can advise you about whether any of these factors exist in your situation.
Generally speaking, property and debt is marital if it is acquired during the marriage as a result of the effort of one or both spouses. Property or debt is separate, and therefore is not subject to division between spouses in a divorce, if it is acquired before marriage, after separation, by inheritance, or by gift to one spouse from a third party. There are exceptions to these general principles, and there are many nuances to how they are applied in determining whether a particular item of property or debt is marital, separate, or mixed. Good legal advice in this area is critical.