Navigating Equitable Distribution in a Charlotte Divorce Proceeding

Whether it was a mutual decision or not, there are a lot of factors involved in a divorce that may seem overwhelming. How are assets divided? Who pays alimony? How much is each spouse entitled to receive? Especially if you and your spouse share a significantly high net worth, your worries will undoubtedly involve the possible transfer and loss of that income and the division of the assets you share.

In North Carolina, assets are divided equitably, but not necessarily equally (50/50). If you have accrued significant assets, equitable distribution can be a boon, because it allows for some creativity in how that property is divided.

When the 50/50 split does more harm than good.

Actors Jennifer Grey (“Dirty Dancing”) and Clark Gregg (“Marvel’s Agents of Shield,” et al.) are currently in the midst of their own divorce, and as they are operating under California divorce law, their assets are being equalized and divided. For example, Jennifer Grey can retain all earnings and residuals from both “Dirty Dancing” movies, while Clark Gregg is going to be sharing his from his past Marvel projects. The court has also awarded Grey a cut of any of Gregg’s future earnings from portraying his iconic Agent Coulson role, along with requiring him to pay her a sum of around $15K to further equalize the split. The couple has decided to continue to jointly own their family home (though Grey will have sole use of it) and will equally split any profits that come from selling the property.

All of this is designed so both parties leave the marriage with an equal amount of assets and funds. There are pros and cons to this, but the main takeaway is that this is not how North Carolina handles it.

When the distribution is equitable, the emphasis is put on fairness rather than a simple split. It is not an automatic process, of course. If your divorce is amicable enough that you can mutually decide who gets what, then your agreed-upon property settlement should be respected by the court, and proceedings can continue. If you are unable to reach your own agreement, you can seek an equitable distribution order from the court, which will figure out a fair division of assets. In many cases, this does end up being an equal split, but not always. If an equal split is unfair to you or your spouse, an attorney can help argue for a more equitable agreement. For example, if you both share a home but post-divorce you will be earning significantly less money than your ex-spouse, a court may decide that your ex-spouse pays more in mortgage payments than you do, alongside any alimony and other payments owed.

Couples with an especially high net worth find this helpful, as usually the greater source of income only comes from one party. With all that needs to be divided, keeping it equitable is the best way to keep it reasonable.

The three types of property division

If you apply for an equitable distribution, the court will look first at the property involved to decide how it will be split. That property is divided into three categories: marital, separate, and divisible.

Marital property refers to all property that has been acquired from the date of marriage until the date of separation. Funds, accounts, homes, vehicles, and even debts all fall under this umbrella. This is where the bulk of the split will come from, as it is technically co-owned in the eyes of the law.

Separate property is just the opposite. Anything owned by either party prior to the marriage, along with any inheritances or awards specifically designated for one person, qualify as separate property. This is untouched by the court. If you feel a property should count as separate, but has been classed as marital, this is something an attorney can help argue for.

Divisible property accounts for the value of any property between the date of separation and the date of distribution. The changing of value, whether it be an increase or decrease, of any marital property is subject to division. The court will also decide on its placement.

Once everything involved has been classified by the court, the actual division will take place in a manner deemed fair and reasonable under North Carolina state law.

Having an experienced Charlotte divorce attorney on your side can ensure that what is equitable to the court is also equitable to you. Even if you and your ex-spouse are amicable, you still want an attorney present to guide you through the process of dividing property and assets to avoid any miscommunications. At Epperson Law Group, PLLC, we will work hard to protect your assets through this difficult time and help your divorce move along as smoothly as possible. Our offices are in Charlotte, Boone, Weddington, and Concord, and we are ready to see you. Call us at 704-321-0031 or contact us today.