Divorce is never easy. For high-income individuals, the process brings an extra layer of pressure.
Divorce involving high earners often includes business interests, investment portfolios, multiple properties, and complex financial records. All of this can make the process harder to manage and easier to get wrong. On top of the emotional weight, there’s a legal and financial system to navigate. Even basic decisions like what counts as marital property can become complicated.
In high-asset divorces, misunderstandings are common, and they’re rarely harmless. A wrong assumption about property division, support obligations, or business valuation can lead to outcomes that are difficult, or even impossible, to reverse.
This guide breaks down the most common mistakes people make during divorce in North Carolina when significant assets are at stake. Understanding what to look out for is one of the best ways to protect what you’ve worked for and move forward with confidence.
Mistake 1: Misunderstanding How Property Is Divided
One of the first and most important questions in a divorce in North Carolina is what actually gets divided. Many people assume everything is split equally, but that’s not always the case.
North Carolina uses a system called equitable distribution. That means marital property is divided using a 50/50 presumption, however, courts can consider evidence to support an unequal distribution. Marital property includes most assets and debts acquired during the marriage. Separate property, like assets you owned before the marriage, personal gifts, or inheritances, is usually off the table.
These lines can blur, however. If separate property is mixed with shared accounts or used for joint expenses, it may be considered marital. For instance, if you inherit money and deposit it into a joint bank account, that inheritance could lose its protected status.
Understanding what qualifies as marital or separate and how that classification can shift is critical. Without clear records and early planning, you may end up dividing more than you expected.
Mistake 2: Failing to Fully Disclose Assets
Full financial disclosure is required in every divorce in North Carolina, but the process is more complicated when there’s more to disclose. High-income earners often hold assets in multiple forms, such as brokerage accounts, business shares, trusts, deferred compensation, or even offshore holdings. That makes it easier for things to be overlooked, and in some cases, intentionally left out.
Whether it’s a mistake or an attempt to hide assets, the consequences can be serious. If the court believes there’s been a lack of transparency, it may issue financial penalties, shift the distribution of assets, or question the credibility of one party’s entire case.
In high-asset divorces, financial disclosure isn’t just about listing what you own. It requires careful documentation and sometimes expert analysis to ensure complex assets are accurately reported and properly valued. Taking shortcuts can cost far more in the end.
Mistake 3: Mishandling Business Valuation
A privately owned business can be one of the most valuable and most difficult assets to divide during a divorce in North Carolina. Yet, many business owners don’t fully understand how valuation works or what the court expects.
North Carolina courts typically use methods like the income approach or the asset approach to determine a business’s fair market value. These are not casual estimates. Courts rely heavily on expert input. The process must be supported by financial records, projections, and industry context.
Another common mistake is assuming the business will have to be sold. In most cases, one spouse buys out the other’s interest, either through a lump sum or offsetting property distribution. This means that if the valuation of the business is off, one party could end up giving up too much or receiving too little.
So, no matter if you’re the business owner or the spouse of one, it’s important to understand how the valuation process works and how it affects the broader outcome of the divorce.
Mistake 4: Misunderstanding Support Obligations
Spousal support, also known as alimony and post-separation support, is often misunderstood, especially in high-income cases. In a divorce in North Carolina, there isn’t a set formula to calculate spousal support. Instead, the court looks at several factors, including how long the marriage lasted, how much each person earns, and the standard of living during the marriage. In some cases, marital misconduct can also affect the outcome.
Due to the variable considerations, alimony can look very different from one case to another. This variability is why some people are surprised by how much they’re expected to pay or how little they may receive.
Child support follows state guidelines, but high-income cases can go beyond the guideline limits. When the parents’ combined income is above a certain threshold, the court may adjust the amount based on the child’s specific needs and the family’s lifestyle before separation.
Assuming support will be simple or predictable can lead to financial stress down the line. It’s important to understand what the court considers and to formulate a plan based on your specific situation.
Mistake 5: Letting Emotions Drive Financial Decisions
A divorce brings up a wide range of emotions—stress, anger, guilt, and resentment, to name a few. When those feelings start guiding financial choices, the consequences can be long-lasting and costly.
Some people want to settle quickly, even if it means giving up more than they should. Others dig in their heels and refuse to compromise, believing it will give them a sense of control or fairness. Emotional reactions often lead to legal strategies that don’t hold up, and that can cause more harm than good.
In a high-asset divorce in North Carolina, it’s especially important to step back and look at the long-term picture. Short-term victories rarely lead to lasting security. A clear, informed approach grounded in facts, not feelings, leads to better outcomes.
A Smarter Divorce Starts with the Right Team
If you’re facing a high-asset divorce in North Carolina, the decisions you make now will shape your financial future for years to come. The process is complex, but it doesn’t have to be confusing or overwhelming.
At Kurtz & Blum, we help clients make sense of complex financial and legal issues so they can make informed decisions at every stage. From business valuation and property division to support planning, our attorneys bring clarity, strategy, and experience to the table.
There are options that go in your favor, even if you don’t see them. Let’s talk about your next steps.
