Charlotte Complex Property Division Lawyer

Many people mistakenly assume that divorce will mean parting with half of your assets. This isn’t necessarily true, and marital assets in a North Carolina divorce are not subject to a strict 50/50 division, as is the case in community property states. The state enforces the equitable distribution law, which aims to ensure the fairest possible division of marital assets in divorce.

It is important to remember that “equitable” does not necessarily mean “equal.” It’s possible for one spouse to receive a greater share of marital assets in divorce to account for the fact that they earn significantly more income than the other spouse. The greater share of marital assets awarded to the lower-earning spouse aims to compensate for the fact that the higher-earning spouse is more likely to maintain their standard of living with minimal disruption after divorce.

Equitable distribution is a more complex system than community property law, but it is also more flexible. It may be possible for the divorcing spouses to effectively “trade” certain assets that are of equivalent value, enabling them to have more control over the outcome of their property division. For example, some assets may be liquidated and the proceeds divided, or the couple may exchange ownership rights of certain assets according to their needs and preferences.

Ultimately, equitable distribution is more complex but more flexible, and it is possible for divorcing spouses to negotiate property division through alternative dispute resolution rather than resolve this aspect of their divorce in litigation. However, when it comes to complex investments, high-value assets, and other complicating details, it is important for each of the spouses to have legal counsel they can trust advising them so they reach positive results.

There are two main types of property that must be outlined in any divorce case. First is separate property, which a spouse will continue to own following the finalization of their divorce. Separate property typically includes assets they owned before marriage, gifts they received, and inheritance from blood relatives. Second is marital property, which generally includes any and all assets and liabilities acquired by either or both spouses during their marriage.

A spouse may claim separate property ownership rights over most things they owned prior to marriage. Separate property also includes gifts they received, anything provided to them in a “donatory” capacity, and inheritance left to them by parents and other blood relatives. Your attorney can assist you in gathering any documentation you will need to firmly establish your separate property claims for your divorce.

Marital property can include income earned by both spouses during their marriage, real estate and other assets purchased during their marriage, and debts incurred during their marriage. It is also possible for some types of separate property to become marital property. For example, if you owned a home before marriage but your spouse then assisted with mortgage payments and renovations, it would likely qualify as marital property due to their contributions.

It’s easy for disputes to arise regarding property division in any divorce, especially when the couple’s assets and liabilities are complex. Many modern divorce cases entail stock portfolios, business stakes, cryptocurrency accounts, and retirement accounts. It is relatively common for one spouse to claim an asset as their separate property and for the other to contest this declaration, claiming the asset is a type of marital property.

It is also possible for a spouse to dispute whether they are responsible for the other spouse’s debts. It’s important to remember that separate and marital property designations can apply to liabilities as well as assets. If you believe your spouse has recklessly incurred debts during your marriage or acquired debts without your consent or knowledge, it may be possible to prove they are solely responsible for them in your divorce proceedings.

Resolving these disputes requires a careful review of all records pertaining to a disputed asset. You may need to prove exactly when you acquired a certain asset, how you acquired it, and whether it was obtained through your own individual efforts or while you were married. It is typically difficult to establish separate ownership rights over an asset that was acquired during marriage as it is assumed the other spouse’s contribution to the marriage helped you acquire it.

Each divorcing spouse will need to present a complete and accurate financial disclosure statement to complete property division in their divorce case. This statement must include all of their financial records and proof of their property ownership rights. It is crucial that your statement is complete and accurate, and if you notice any unintentional omissions, you must notify your attorney immediately.

If you suspect that your spouse has hidden assets or has been intentionally untruthful about their financial disclosure statement, or if you believe they have purposefully wasted marital assets in the interim between your decision to divorce and the beginning of your proceedings, it is crucial to notify your attorney immediately. They can help you determine the optimal possible remedies to these situations and explain how they could impact your case.

Alternative Dispute Resolution for Divorce

When most people imagine divorce, they think of heated courtroom battles, but the reality is that many divorcing couples throughout the United States are opting for alternative dispute resolution whenever possible, saving time, money, and frustration in resolving their divorces. This is not a viable option for every divorce, and alternative dispute resolution can unfold in different ways. Collaborative law and mediation are some of the most popular choices in Charlotte.

In collaborative law for divorce, the spouses and their respective attorneys meet privately to negotiate terms for their divorce. While some issues cannot be resolved in this manner, such as child custody and child support, it is possible to negotiate property division under the state’s equitable distribution law. In a complex property division case, this can be challenging, but it may still be faster than resolving property division in court.

Mediation is a similar process as it basically entails collaborative law under the supervision of a neutral third party who mediates the negotiations. This mediator helps the divorcing couple resolve each issue their divorce entails item by item until they have addressed all the issues they can in alternative dispute resolution. The couple then takes their mediated terms to court and resolves the remainder of their case, such as their child custody-related issues.

Alternative dispute resolution can sometimes enable a divorcing couple to resolve their divorce far more quickly than litigation would allow, but it is also possible that the couple could reach an impasse in their negotiations, prompting them to take the case to court. It’s worth investigating this avenue for resolving your divorce if possible, and having the right attorney on your side will be crucial for reaching the optimal outcome for this aspect of your proceedings.

Plumides, Romano & Johnson, PC, can assist you with all aspects of your divorce. When it comes to complex property division, we can help our client complete the financial disclosure process accurately and address any discrepancies that arise with their or their spouse’s supplied records. We can help our clients explore alternative dispute resolution if possible and represent them in the courtroom if necessary.

It is natural to worry about the outcome of complex property division in your Charlotte divorce, but you can approach this difficult situation with peace of mind when you have the right attorney on your side. An experienced Charlotte complex property division lawyer can help you make sense of your situation, collate complex financial records for all types of assets, and do everything they can to help you reach the optimal outcome for your divorce case.