When approaching a divorce for the first time, it's crucial to distinguish between marital and separate property. This understanding can provide confidence and financial security during the process.
Separate PropertySeparate property refers to assets owned before marriage or acquired after separation. These assets are considered "untouchable" during divorce, meaning the owner retains 100% of their value. Examples include real estate, stocks, bonds, or businesses owned before marriage.
Marital PropertyMarital property includes assets acquired during the marriage and is subject to "equitable distribution." This process doesn't necessarily split assets 50/50 but considers various factors to determine a fair distribution. It includes any property acquired by either spouse during the marriage, regardless of who purchased it.
ExceptionsCertain assets acquired during the marriage, such as inheritances and gifts, can be classified as separate property. Conversely, separate property can become commingled with marital property if used jointly, such as an inheritance to buy a family home. Contributions by one spouse to the other's separate property can also complicate the classification. Understanding these distinctions helps ensure fair property division and reduces the fear of "losing everything" in a divorce.
Can You Force Your Ex to Sell Property During a Divorce?For many spouses in North Carolina, selling property is the most ideal outcome during a divorce. Liquidating certain assets gives you access to cash, which can be used in many different ways. Cash is even more attractive with higher interest rates, as Americans are now rewarded for simply keeping their money in a high-yield savings account. Unfortunately, divorce can pose many challenges for spouses who simply want to sell marital assets and move on with their lives. The other spouse may wish to hold these assets. But can one spouse force the other to sell?
Court AuthorityIn North Carolina, only the courts can order the sale of property during a divorce. One spouse cannot unilaterally force the other to sell assets. Any attempts to coerce or force a sale without court approval may lead to serious legal consequences.
Collaborative Divorce NegotiationsSpouses can encourage the sale of property through collaborative divorce negotiations, where each spouse is represented by their own attorney. Offering concessions, such as full ownership of other assets, can persuade the other spouse to agree to sell. Effective negotiation involves understanding and addressing each spouse's specific needs and goals.
Petitioning the CourtIf negotiations fail, a spouse can petition the court to order the sale of property. The court may approve the sale if there is a significant need for cash flow, such as impending foreclosure. However, personal financial needs alone may not convince the court. Working with an attorney to present a compelling argument is crucial.
Refusing to Trade AssetsA spouse may also refuse any settlement except for the sale of the property. By rejecting other arrangements, the court might decide that selling the property and dividing the proceeds is the simplest solution when spouses cannot reach an agreement. Understanding these strategies can help navigate property division during a divorce, ensuring a fair and practical outcome.
Who Can Help With Complex Property Distribution in North Carolina?Approaching complex property distribution during a divorce in North Carolina can be overwhelming, but various professionals can assist in navigating this process:
Certified Divorce Financial Analysts (CDFAs)CDFAs help ensure financial security post-divorce by assisting in lifestyle adjustments, collecting financial data, making smart investments, and setting financial goals. They continue to offer support even after the divorce is finalized.
Forensic AccountantsForensic accountants specialize in uncovering concealed assets, such as those hidden through precious metals, cryptocurrency, offshore accounts, or money laundering. They can reveal hidden wealth and give you a favorable position in court by exposing financial misconduct.
AppraisersAppraisers determine the value of complex assets, such as corporations and real estate, providing accurate assessments crucial for fair asset division.
Accountants and Wealth ManagersYour personal accountant or wealth manager can provide insights into tax implications and financial considerations. If you're unfamiliar with the family's financial professionals, it's advisable to hire your own to avoid conflicts of interest.
Teamwork and CommunicationSuccessful complex property distribution often involves a team of professionals. Choose individuals with strong teamwork and communication skills to minimize miscommunications and costly errors.
By assembling a team of experienced professionals, you can approach complex property distribution with greater confidence and achieve a positive outcome.
Where Can I Find a Qualified, Experienced Divorce Attorney in North Carolina?If you have been searching for a qualified divorce attorney in North Carolina who has experience with complex property division, look no further than Arnold & Smith, PLLC. Over the years, we have helped numerous divorcing spouses in the Tar Heel State – including those approaching complex equitable distribution. We know that there are many things to consider as you move forward, and we can guide you through this entire process with confidence and efficiency. Book your consultation today to get started.