Even if divorce marks the end of a relationship, there is still one complicated matter to address – the division of your finances and assets. Most couples purchase homes and manage their funds together, which can make it difficult to decide who should receive what after separation. Courts in North Carolina address this issue by using equitable distribution. This allows couples to split their marital assets in a fair and just manner.
Bear in mind that equitable distribution only applies to marital property and divisible property. Not all property is subject to division. Common assets the court can divide include wages and retirement contributions earned during the marriage, as well as any properties or vehicles the couple bought together.
Why does North Carolina prioritize equity in a divorce?
Equitable distribution can protect the financial futures of each spouse after a divorce. By dividing marital property and marital debt with equity in mind, courts in North Carolina can provide divorcees with a fair split of assets. To accomplish this, courts examine each case carefully because the circumstances of each couple are different.
Courts consider many factors when determining the division of property. To ensure the distribution is equitable, they examine and compare a divorcing couple’s income, properties and liabilities. The duration of their marriage may also be a factor, as well as each spouse’s contributions as a wage-earner and a homemaker.
Does fair necessarily mean equal?
When it comes to equitable distribution, the division of assets will not always be equal, though courts start with the presumption that equal division is equitable. North Carolina prioritizes fairness over equality, which means the court will attempt to give each spouse the assets they need to live comfortably after separation. Occasionally, the partner with less earning ability will receive more assets. This has the potential to reduce conflict and disputes after a divorce.
Through equitable distribution, both spouses can have the finances, properties and resources needed to start anew, potentially giving them some peace of mind as they adjust to their lives after a divorce.