Are you preparing to get divorced in North Carolina? If so, you and your spouse must divide all property and assets. Of course, you cannot effectively divide what you have until you know exactly what is owned. Our state has comprehensive asset disclosure requirements for spouses going through a divorce. A proactive approach is key. You must be ready to list everything you own. Here, our Charlotte divorce attorney provides a guide to listing your assets in North Carolina.
Understanding Marital vs. Separate Property in North Carolina
North Carolina is an equitable distribution state. Under North Carolina law (G.S. § 50-20), a couple’s property—but only their marital property—will be divided in an equitable (fair) manner in a divorce. Here is the key point to know about how these terms are defined by law:
- Marital Property: In North Carolina, marital property includes assets acquired during the marriage, regardless of who earned or purchased them. It is subject to division.
- Separate Property: In North Carolina, separate property consists of assets owned before marriage or acquired through inheritance or gifts specifically from third parties to one spouse. It is not divided.
Comprehensive Asset Categories to Consider (What to List)
In a North Carolina divorce, both parties to a divorce are generally required to disclose their assets for equitable distribution. Each party should be prepared to provide a detailed inventory of marital and separate property. A full, accurate disclosure of assets is essential. Here is an overview of key assets to list when getting divorced:
- Real Estate: Real estate includes any property you own, such as a marital home, rental properties, vacation homes, or land. You must disclose ownership details.
- Financial Accounts: All bank accounts, including checking, savings, and money market accounts, must be listed. Both joint and individual accounts should be disclosed.
- Investments: Stocks, bonds, mutual funds, crypto, and other investment holdings must be reported. You should provide details on ownership, account balances, and any changes in value.
- Retirement Accounts: Pensions, 401(k)s, IRAs, and other retirement savings accounts are considered in the property division.
- Business Interests: If you own or have a stake in a business, its value and ownership percentage must be disclosed. Common business entities include sole proprietorships, partnerships, LLCs, and corporations.
- Personal Property: Valuable possessions—vehicles, jewelry, electronics, furniture, collectibles, etc—may need to be listed. This also includes pets.
- Life Insurance Policies: Whole life and term life insurance policies should be disclosed, including cash value and beneficiaries.
- Debts and Liabilities: Mortgages, credit card balances, car loans, medical bills, and personal loans must be reported. In North Carolina, marital debts are also split equitably.
Know the Steps to Accurately List and Value Assets
1. Gather Documentation
Organization is one of the keys to effectively navigating the financial issues related to a divorce, including property division. Among other things, you should collect financial statements, property deeds, tax returns, and insurance policies to verify ownership and value. You should make sure that all documents are up to date and include both individual and joint assets.
2. Obtain Professional Appraisals
In some cases, you should get a professional appraisal of assets. Not all property is easy to put a clear value on. Indeed, there are certain assets—such as real estate, businesses, and valuable personal property—that may require a professional appraisal. An expert can provide an unbiased assessment of an asset’s worth.
3. Assess Fair Market Value
The current fair market value of all of the property/assets that you own matters. You should determine what each asset would reasonably sell for in the current market. Use comparable sales, financial statements, or appraisals to establish an accurate estimate.
4. Consider Tax Implications
There can be tax consequences associated with a divorce. For example, some assets—most notably, retirement accounts—can have major tax implications when liquidated and divided. You must have a top-tier North Carolina divorce attorney on your side to help ensure you are protected from taxes and penalties.
An Overview of the Most Common Challenges in Asset Disclosure
Several different potential issues can arise during the asset disclosure process of a North Carolina divorce. You must be ready to take on any challenges. Here are the key issues:
- Hidden or Undisclosed Assets: One spouse may attempt to conceal assets to avoid division, which can lead to legal consequences if discovered. A careful financial investigation can help to uncover any hidden property.
- Complex Financial Portfolios: Assets such as stocks, bonds, business interests, and international accounts can be difficult to track and value. Proper documentation can make a big difference in a complex, high-asset divorce.
- Valuation Disputes: In some cases, spouses may disagree on the worth of certain assets, such as real estate, businesses, or collectibles.
Contact Our Charlotte Divorce Attorney for a Confidential Consultation
At Remington & Dixon, PLLC, our Charlotte divorce lawyers are standing by, ready to help you navigate complex legal requirements, including listing assets. If you have any specific questions about property division and divorce, please call us now or contact us online to arrange a fully private, no-strings-attached case evaluation. From our Charlotte law office, we represent clients in divorce cases in Mecklenburg County and throughout the wider region of North Carolina.
