North Carolina Divorce Lawyers Blog

Articles Posted in Property Division

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In Equitable Distribution, we often ask clients about the debts that they accrued during the marriage and the value on the date of separation. This is because the judge is required to classify, value, and distribute marital property. But it may not always include debts incurred during marriage. The debts acquired by a spouse can be classified as marital, separate, or divisible, but only by showing that the debt has certain elements, required by law, can a debt be classified as marital. Continue reading →

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Vonhall v. Vonhall, (No. COA20-466) (unpublished)

In equitable distribution, clients often ask whether gifts to one spouse during the marriage is going to be subject to division. Below, we see a simple case example of how the law treats these gifts and the evidence that supports the legal conclusion: Continue reading →

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Wall v. Wall, 140 N.C. App. 303 (2000).

Former spouses in North Carolina can split their property in an action for Equitable Distribution (ED). In order for the Court to make a decision on distributing property, it needs an inventory affidavit of all property owned as a product of the marriage. Occasionally, and especially in cases involving high-income parties, the inventory list can be extensive. Many times, there can be arguments regarding values of property. This can lead to some delay between the day of the hearing and the day of entry of a Judgment. Continue reading →

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Suppose that you are recently separated or divorced and have minor children. Should you have a life insurance policy in place to ensure sufficient resources are available to provide for your children if you suddenly die? What factors must you consider before taking out a life insurance policy to benefit your children? Should you enter into any agreement with your former spouse to carry this insurance? The answer to all of these questions is probably no. Continue reading →

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Ubertaccio v. Ubertaccio, 588 S.E.2d 905 (N.C. App. 2003) (Levinson, J. concurring)

 

In North Carolina, Equitable Distribution (ED) is one of the common mechanisms by which former spouses divide their personal and real property. Stock options and salary substitutions acquired by a party are typically subject to ED. However, not all stock options are genuine stock options on their face. Nor should all forms of deferred compensation be subject to ED. Below, we discuss a Judge that agreed with the outcome, but not on the rationale of classifying a “stock option” in ED. Continue reading →

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Generally, military disability benefits are exempt from distribution in equitable distribution actions. Here we see whether the court can consider these benefits as income to satisfy a distributive award pursuant to an equitable distribution order. (In this case, Plaintiff improperly filed a Rule 60 motion to set aside the judgment, which is outside the scope of this blog.) Continue reading →

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Stock options can be offered to employees as an incentive or reward for a job well done. They are typically offered up front as a future benefit after working at a company for a set amount of time and can be purchased at an option price that was previously set. Every company will have a different policy and set of requirements. Some require vesting. In North Carolina, in most circumstances, the court will consider a stock option as a form of deferred compensation. The label is important because it opens up the possibility of stock options to equitable distribution. If they are acquired or received during the course of marriage and before separation, they are very likely marital property, even if the option cannot be exercised until after a judgment of divorce. Likewise, they can be divisible if acquired as a result of employment during the marriage, but not received until after separation. Continue reading →

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Crowell v. Crowell, 809 S.E.2d 325 (2018).

In North Carolina, Equitable Distribution (ED) is one of the mechanisms by which former spouses separate their personal and real property. Sometimes property can be mingled in with third parties, such as in cases where either a trust or a third-party business entity is involved. The case below discusses how a court may handle such an issue. Continue reading →

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In North Carolina, Equitable Distribution (ED) is how property is divided in divorce proceedings. ED can be a complicated process, and much of it relies on timelines and tracing funds. When people get married, a typical occurence is that separate bank accounts are converted to joint accounts. What happens in a divorce proceeding when one spouse claims that the account is not joint but still separate, despite the addition of the other spouse’s name? Continue reading →

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Stowe v. Stowe, ___ N.C. App. ___ (2020).

In North Carolina, Equitable Distribution (ED) is one of the mechanisms by which former spouses separate their personal and real property. What if the during the marriage one party opens a business? Unlike other forms of property, businesses have reputations that are carefully cultivated, as well as patrons and other intangibles that make the business more valuable than what can be accounted for on paper. Courts call this factor Goodwill. In the case below, we explore how one court handled Goodwill for an insurance company. Continue reading →