A structured approach to dividing marital property, clear financial analysis, and legal representation focused on protecting your long term financial stability.
Property division is one of the most consequential parts of a separation or divorce. North Carolina uses an equitable distribution system, which means marital assets and debts are divided fairly, not necessarily equally. The outcome depends on accurate financial information, proper classification of assets, and careful evaluation of each spouse’s contributions and future needs. We help clients secure fair and defensible property settlements through negotiation, mediation, or litigation.
Speak with a Raleigh property division attorney today.
How Property Division Works in North Carolina
North Carolina follows a three step process:
- Identify the Property – Determine what assets and debts exist.
- Classify the Property – Sort everything into marital, separate, or divisible property.
- Value and Distribute the Property – Assign a fair value and determine how each item should be divided.
The court’s goal is equity, not strict 50/50 equality. Financial documentation and careful analysis shape the final outcome.
Marital, Separate, and Divisible Property
Marital Property
Property acquired between the date of marriage and the date of separation. This includes income, retirement contributions, real estate bought during the marriage, vehicles, household items, and most debts.
Separate Property
Assets owned before marriage, inheritances, and gifts from third parties to only one spouse. Separate property is not divided unless it was mixed with marital assets.
Divisible Property
Changes in value that occur between separation and distribution, such as passive increases or decreases in investment accounts.
Correct classification is the foundation of a fair distribution. Misclassification is one of the most common and most damaging mistakes.
The Equitable Distribution Process Step by Step
1. Inventory and Disclosure
Each spouse must list all assets and debts. This includes bank accounts, retirement accounts, vehicles, real estate, business interests, credit cards and loans, personal property, stock options and RSUs, digital assets, and cryptocurrency. Full financial disclosure is mandatory.
2. Classification and Tracing
We determine whether each item is marital, separate, or divisible. Mixed or commingled assets require additional analysis.
3. Valuation
Assets must be valued as of the date of separation. Some items require expert appraisal, such as businesses, real estate, pensions, stock options, collectibles, and high value personal property.
4. Distribution
Courts start with a presumption that a 50/50 split is equitable. However, this presumption can be rebutted. Judges consider a list of statutory factors to determine a fair division.
5. Negotiation, Mediation, or Trial
Most cases resolve through negotiation or mediation once the financial picture is clear. When litigation is necessary, we present the strongest possible financial and legal argument to protect your interests.
Factors Courts Consider When Dividing Property
North Carolina law allows courts to adjust the distribution of property based on factors such as:
- Length of the marriage
- Income and earning ability of each spouse
- Age and health
- Childcare responsibilities
- Contributions to the marriage (financial and non financial)
- Waste or destruction of marital assets
- Debt structure and financial liabilities
- Need for one spouse to remain in the marital home
- Expectations of future income, retirement, or benefits
- Tax consequences of distribution
- Any other factor necessary to achieve fairness
These factors can shift a division from 50/50 to something different when equity requires it.
Complex Property and High Asset Cases
Some cases require advanced financial analysis because they involve business ownership or professional practices, investment portfolios, stock options, RSUs, or deferred compensation, multiple real estate holdings, significant passive income, high debt load or uneven debt responsibility, inherited wealth that has been commingled, or cryptocurrency and digital assets.
We work with financial experts when needed to ensure valuation and distribution are accurate, defensible, and fair.
The Marital Home
The home is often the most complicated asset. Options include:
- One spouse buying out the other
- Selling the home and dividing proceeds
- Deferred sale when minor children are involved
- Allocating debt responsibility while preserving equity
Courts evaluate both financial and practical considerations, especially when children need stability.
Debt Division
Marital debt is divided alongside marital assets. This includes mortgages, credit cards, personal loans, medical debt, tax liabilities, and business debt depending on ownership and benefit.
Even if a debt is in one spouse’s name, it may still be marital if it was used to support the marital household.
Documentation That Strengthens a Property Case
Useful documentation includes:
- Bank and investment statements
- Retirement account statements
- Mortgage and loan documents
- Business records and tax returns
- Appraisals for homes or valuables
- Proof of separate property (inheritances, premarital assets)
- Transaction records showing commingling or contributions
We help clients organize financial evidence early to prevent disputes later.
Modification and Enforcement
Once property division is finalized, it generally cannot be modified. This makes early strategy and precise documentation critical.
Enforcement options include contempt, judgments, transfers of title, and orders requiring cooperation with financial institutions.
Our firm assists with compliance, enforcement, and any disputes that arise after the order is entered.
Common Mistakes to Avoid
- Failing to list all property or debts
- Mixing separate property with marital funds without documentation
- Allowing the divorce to finalize before filing property claims
- Trying to hide assets or income
- Guessing at asset values instead of documenting them
- Accepting a settlement before understanding long term consequences
- Not considering tax implications
We help clients avoid these pitfalls before they become expensive problems.
How Kurtz & Blum Helps
Clients rely on us because property division has long term financial consequences. We provide:
- Accurate identification, classification, and valuation of assets
- Strategic guidance on negotiating property settlements
- Protection for business owners, high earners, or financially vulnerable spouses
- Experienced mediation and litigation representation
- Clear explanations of tax, financial, and legal impacts
- Strong enforcement and compliance support
Our goal is to ensure that property division is fair, evidence based, and aligned with your financial future.
Frequently Asked Questions
Is property always divided 50/50 in North Carolina?
No. Courts begin with that presumption but can adjust based on fairness.
Is my retirement account marital property?
Any portion earned during the marriage is usually marital.
Can I keep property I owned before marriage?
Yes, if it is still separate and was not commingled, but proof is required.
What if my spouse handled all the finances?
We help you obtain the records and build a complete financial picture.
What happens to debt?
Marital debt is divided just like marital assets.
Can property division be modified later?
Almost never, which is why early strategy is critical.
Talk With a Raleigh Property Division Attorney
If you are facing separation or divorce, your financial future depends on how property is identified, valued, and divided. We help clients build strong cases, avoid mistakes, and secure fair outcomes through negotiation or litigation.
Schedule a consultation with Kurtz & Blum today.
