Will I Lose My Savings Account in My Divorce?

Many couples going through divorces have similar questions about their finances and belongings. Some wonder about losing their inherited real estate properties, while others worry that they may have to sell their expensive artwork. However, one of the most common questions our attorneys often receive is about savings accounts.

Some spouses have been saving for years, whether they are putting money into a 401K account or simply preparing for the aftermath of the divorce by putting a few dollars into a savings account every week. This can cause them stress and frustration imagining that they may lose their hard-earned savings to their spouse during a divorce.

What do North Carolina’s laws say about dividing assets during a divorce?

North Carolina statute § 50-20 explains that the state of North Carolina distributes assets that are considered to be marital property by an equal 50/50 division among both spouses. This means that each spouse is given 50 percent of almost all assets. This is the goal in North Carolina divorces because it is seen as “fair.” However, sometimes the court will state that a couple’s assets cannot be equally divided because it would be unfair to one spouse. Here are some of the factors that go into deciding how to distribute a couple’s assets during a divorce:

• Income, debt, liabilities, and property
• Other support responsibilities, such as past marriages or child support
• How long the couple have been married
• Each spouse’s age and mental and physical health
• Whether or not a spouse with child custody needs to own the marital home or residence
• The expectation of retirement, pension, or other benefits
• Interest, effort, or contribution to obtain the marital home
• Any contributions or efforts made to pay for education or help their spouse advance in their career
• Liquid or non-liquid value of all property
• The challenges of evaluating interest in businesses
• Any tax consequences
• Steps made to devalue, neglect, preserve, or expand any marital property or assets

Is my savings account considered personal or marital property?

North Carolina statute § 50-20 explains the differences between personal and marital property, which we will briefly elaborate on below.

• Personal property, also referred to as separate property, is any money, assets, or property that a person receives or earns before they get married or after they are divorced. Personal property can also be gifts or inheritances that an individual receives during the marriage from the spouse or another family member as long as it can be proven that it was a gift to only one spouse.
• Marital property is all assets, property, or money earned or received by one or both spouses during the marriage and before the separation date. If a gift was given by a spouse to the other spouse, it must state that it is only one spouse’s property.

If your savings account was created and contributed to after you were already married, it is considered to be marital property in the state of North Carolina. So there is a strong possibility that your spouse will be entitled to half of your savings.

What types of assets are usually divided during a divorce in Charlotte, NC?

After learning the difference between marital property and separate property in North Carolina, you may be interested in knowing what types of assets are usually divided during a divorce. The following are a few examples of common assets that our firm often sees being divided among our clients:

• Real estate properties such as family or vacation homes
• Businesses
• Checking and saving accounts
• Motorcycles, cars, RVs, campers, and other vehicles
• Boats
• Retirement and 401K accounts
• Investments
• Artwork
• Household items such as jewelry, collectibles, and clothing
• Timeshares
• Cash
• Stocks and bonds
• Cryptocurrency
• Life insurance policies

As you can see, there are many assets that you and your spouse may be entitled to split when going through the divorce process. To find out if anything is considered separate or marital property that you do not see on this list, it is recommended that you consult with your Charlotte family law attorney as soon as possible.

Can I hide my savings account before the divorce/marital property division process begins?

1. No, you cannot.

When a person wants to avoid dividing their savings with their spouse, they may think that they should try to hide it before the marital property division process begins. This is usually done by giving the money to a friend or family member, not being truthful about how much money you have saved, or claiming not to know about certain bank or savings accounts.

While you may think that this will protect your hard-earned savings that you do not want to share with your spouse, it is highly recommended that you refrain from doing so. Instead, you should disclose any needed information about your savings accounts, retirement accounts, properties, and all assets during a divorce. Attorneys work with some of the most skilled investigators and forensic accountants who are trained on how to discover any accounts or information that you are hiding. Therefore, if it is determined that you have hidden anything from your spouse during this process, you may be required to pay penalties and fines that could be more expensive than if you had been honest and properly divided your money and assets in the first place.

If you are going through a divorce and have specific questions and concerns regarding any assets that you own, please reach out to Epperson Law Group, PLLC at your earliest opportunity. Our divorce lawyers will do everything we can to guard and protect your assets as well as ensure that they are divided fairly. To schedule your free case evaluation, call our firm or submit our contact form today. We are located in Charlotte, Boone, Concord, and Weddington.