Equitable Distribution Process in North Carolina
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TrustCounsel’s Gregory Herman-Giddens will present ‘Tax Aspects of Equitable Distribution’ on October 30th in Chapel Hill, North Carolina at a day-long seminar through Half Moon Education, a continuing education provider. This seminar is open to the public, but pre-registration and a fee is required. HalfMoon Education has applied for CLE credit for North Carolina attorneys and paralegals, which is pending. The program has been approved for 6.5 Virginia CLE hours for attorneys. Register for the event here.
Claims for equitable distribution in North Carolina are only valid if they are made after the date of separation and before the date of divorce. When filed timely, the process starts with identifying marital and separate property.
Not all assets are divisible under equitable distribution in North Carolina. These assets include separate property such as:
- Separate inheritances or gifts
- Pre-marital assets and property
- Professional licenses
The next step is valuation. Common complications that arise when determining the fair market value of items include real estate value fluctuations, collectible items, liens, if separate property values increased as a result of marital efforts, and several other factors.
The final step is distribution, which is done at the discretion of the court according to the terms of the Equitable Distribution Act. According to the North Carolina General Statutes, there will be:
…an equal division by using net value of marital property and net value of divisible property unless the court determines that an equal division is not equitable. If the court determines that an equal division is not equitable, the court shall divide the marital property and divisible property equitably.
What affects equitable distribution in North Carolina? To name a few variables: Post-marital assets, dependents, prenuptial agreements, each spouse’s income-earning capacity, and tax consequences of unequal or non-pro rata distribution.
The seminar offered at month’s end reviews tax consequences of equitable distribution, offers tips on valuing marital property, and reviews how to accurately prepare equitable distribution inventory affidavits and equitable final distribution orders. When considering assets in the interim, learn about whether or not an estate plan should be revised before or after a divorce.
