So, you and your spouse have decided to separate (or you just separated) and you are concerned about your next steps related to property? And, you should be concerned. Dividing your marital estate sounds complicated and sometimes it is the most complicated part of a separation and divorce.
For starters, the law in North Carolina presumes that you and your soon-to-be ex are going to divide your net marital estate equally (yep, 50/50). What is your marital estate? Generally speaking, your marital estate is made up of all of the assets you accumulated during the marriage and still had on as of the date of separation. And, while liabilities are generally presumed to be your separate liability, your lawyer will want to look at all debts and liabilities you accumulated during the marriage as well. The debts you have on the date of your separation may have been accumulated for things that supported the marriage, and therefore, there can be proof that said debt should be marital debt.
Here are some steps that will help guide you through this tricky process:
1. Be honest and transparent, both with yourself and with your attorney.
2. Organize your financial documents (assets, bank accounts, investments, retirement, debts, insurance policies, income documentation).
3. Create an Inventory of Marital Property, making a list of all of your property and assets and then noting which you had prior to marriage, which you acquired during your marriage and which you still have at separation.
4. Make sure you understand who holds title to those assets. While title does not necessarily control the distribution, when you resolve matters, you will need to make sure the title of the assets you receive are solely in your name.
5. Make sure you are clear about your priorities. Know which assets are most important to you and why.
6. Consider the valuation of assets. This includes obtaining appraisals for real estate, values for vehicles and other high value items.
7. Understand the division of debts and be prepared to discuss debts with your attorney, especially any debts that were incurred for marital expenses.
8. Review state laws. Property distribution rules vary by state by state, and you do not want to be led astray by trying to apply the wrong laws to your situation.
9. Prepare a budget because your finances will likely be impacted.
10. Make a list of all of your questions and concerns to discuss with your attorney. This includes bringing contact information for anyone your attorney may need to talk with.
11. As much as possible, stay professional and objective. Your attorney understands that divorce can be emotionally charged; but focusing on facts and outcomes will help your attorney build a stronger case for you.
12. Again, be honest and transparent, both with yourself and with your attorney. Yes, I repeated this line intentionally.
Being organized and transparent will save time, reduce costs, and help your attorney advocate effectively on your behalf. At Modern Legal, we are here to walk with you every step of the way.
If you or somebody you know has questions about property distribution as a result of separation or divorce, our team at Modern Legal is here to help.
Please note: these educational materials are based on North Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country.
Written by: Deborah L. Dilman
Prior to practicing family law, I worked for many years in the financial industry. While I enjoyed this career in business, I wanted to do more – I wanted to make an impact on the lives of my community that would empower my clients throughout the test of time. I wanted to work to make lives better and inspire people to make important decisions for themselves and for their families. I completed my undergraduate degree in Business at Queens University in Charlotte, North Carolina. Eighteen years later (2003) I received my law degree from Syracuse University College of Law. And, for over fifteen years, I have represented children through the Council For Children’s Rights Custody Advocacy Program.
