Ending a marriage after several years together can be challenging, especially when it comes to property division. Long-term marriages often involve deeply intertwined finances, marital assets and questions about what is fair after many years of shared contributions.
Knowing where property division challenges commonly arise can help you better prepare for what may be ahead.
Property division is rarely straightforward
In North Carolina, courts divide marital property in a way that’s deemed fair. The first challenge is differentiating between marital (acquired during the marriage) and separate (acquired before the marriage or received by gift or inheritance) assets.
In long-term marriages, this distinction often becomes blurred. For example, inherited funds may have been deposited into joint accounts or used to buy marital property. After several years, tracing the origin of certain assets can be difficult, leading to disputes over who owns what.
And, the longer the marriage lasts, the more likely it is that separate and marital assets have been mixed. This is known as commingling, and it can transform separate property into marital property.
Long-term marriages typically involve more complex assets that must be accurately valued before they can be divided, such as:
- Retirement accounts and pensions
- Closely held businesses or professional practices
- Real estate holdings
- Investment portfolios
Valuation can be difficult when assets fluctuate in value and are not easily liquidated. The services of a financial expert are often required, as determining the fair value of such assets can be a point of significant disagreement.
In long-term marriages, spouses often take on different roles. One spouse may have been the primary earner, while the other spouse focused on managing the household and raising the children.
Courts recognize both financial and non-financial contributions to the marriage when determining an equitable distribution. However, assigning a value to a non-monetary role is often subjective and may lead to disputes.
The combination of commingled assets, complex valuations and decades of varying marital contributions creates unique challenges regarding property division. Working with a legal professional can help ensure an accurate valuation of complex property and a strategy for equitable distribution. Their assistance can help you avoid costly financial mistakes and reach a resolution that reflects your contributions and supports your financial future.