Are you a homeowner who is preparing for a divorce in North Carolina? If so, you must be prepared to protect your rights, your interests, and the investment in your home. This raises an important question: How is the family home divided in divorce? In North Carolina, the answer is that it is generally subject to equitable distribution. Each spouse is entitled to their fair “share” of the family home. Here, our Charlotte divorce attorney provides a comprehensive guide to the key things to know about dealing with the family home in a divorce in North Carolina.
Divorce and Family Home: The Basics
For many people going through a divorce in Charlotte or elsewhere in Mecklenburg County, their home is their most important asset. Beyond that, a family home often has deep sentimental value.
Knowing how to handle the home in a divorce is a must. Under North Carolina law (G.S. § 50-20), an equitable distribution standard applies to property division—including the family home.
Equitable distribution applies to marital property—which usually (but not always) includes the family home. To be clear, it is not a guaranteed 50/50 division in property. Instead, equitable distribution is a “fair” property division. Assets are divided fairly but not necessarily equally. In applying the standard in North Carolina, courts consider a wide range of different factors, such as each spouse’s financial contributions, the length of the marriage, and future needs.
Determining Family Assets in a Divorce (Marital Property)
How do you determine whether or not your family home counts as marital property in North Carolina? Here is an overview of the key points to consider:
- Family Home as Marital Property (More Common): In most North Carolina divorces, the family home is considered marital property. Marital property includes all assets acquired during the marriage with marital funds—regardless of whose name is on the title of the property. If the home was purchased after the couple married or was substantially improved with marital income, it is typically classified as marital property and is subject to equitable distribution. North Carolina courts will assess factors like the value of the home, each spouse’s financial contributions, and non-financial contributions, such as raising children.
- Family Home as Separate Property (Less Common): While less common, a family home can be classified as a separate property in North Carolina. Separate property remains fully owned by a specific spouse. It is not subject to distribution in a divorce. If the home was acquired before the marriage and protected by a prenup or kept entirely separate during the marriage, it may be a separate property. Similarly, a home inherited or gifted to one spouse alone is generally deemed separate property. However, if marital funds were used for mortgage costs or major improvements, the property may become part marital.
Your Three Main Options for Dealing With a Family Home in a Divorce in North Carolina
You may be wondering: What are my options for dealing with a family home during a divorce in North Carolina? The answer is “it depends”—your needs, goals, and financial position all matter. In general, divorcing couples in Charlotte will do one of the following three things:
- Allow One Spouse to Remain in It: One common option is for one spouse to remain in the family home. For many divorcing couples, this option is often the preferred choice when young children are involved. The reason is that it provides stability and continuity in their living environment. The spouse staying in the home may “buy out” the other spouse’s share by paying them an agreed-upon value of their equity. Alternatively, other marital assets can be allocated to compensate the departing spouse. A comprehensive approach is a must.
- Sell It and Divide the Proceeds: You do not have to keep the family home. Indeed, many divorcing couples decide that all parties should get a fresh start. The home can be sold and the proceeds can be split. Selling the family home is a straightforward solution―especially so if neither spouse can afford to keep it alone. After the sale, the proceeds are typically divided equitably based on North Carolina’s property distribution standard. Of course, selling the home can be emotionally difficult, particularly if it has been the center of family life for many years. Timing is crucial. Market conditions matter.
- Maintain Collective Ownership and Rent It Out: A less common but still viable third option is to keep the home—at least for the time being—and allow both spouses to move out. Indeed. in some cases, divorcing couples may choose to retain joint ownership of the family home and rent it out. Why is this option desirable? It can generate income for both parties while allowing the property to be appreciated. It works best when both parties can cooperate in managing the property and handling financial responsibilities—such as maintenance, taxes, and rental agreements. Further, this option may also provide a temporary solution if neither spouse is ready to sell or move. With that being said, it requires ongoing communication and a clear agreement on how to share the proceeds.
How Charlotte Divorce Lawyer Can Help With Property Division
Dividing assets in a divorce is challenging—and there is perhaps no type of property that is more difficult to deal with than the family home. You do not have to navigate the divorce process yourself.
Jennifer Dixon is a top North Carolina divorce lawyer. Attorney Dixon has extensive experience handling complex property distribution cases, including helping clients deal with their homes and other types of real estate. We will work to protect your legal rights and your financial interests.
Contact Our Charlotte Divorce Attorney Today for a Confidential Consultation
At Remington & Dixon, PLLC, our Charlotte divorce lawyer is committed to helping clients find the best solution for their situation. If you have any specific questions or concerns about dealing with the family home in a divorce, we are here to help. Call us now or contact us online today to schedule a fully confidential, affordable initial consultation. With an office in Charlotte, we provide divorce representation in Mecklenburg County and throughout the surrounding region in North Carolina.