Divorcing spouses are not guaranteed to receive an equal distribution of their marital assets and debts. If either spouse requests equitable distribution, the court will divide their property in a way that is determined to be fair, which isn’t always 50/50.
Because each equitable division of property is based on the unique circumstances of individual couples, the division of property can sometimes be substantially different. That is what happened in the case of Smith v. Smith.
Smith v. Smith
During the marriage and until 2016, Wife worked part-time as an adjunct professor at a community college. One month before separation, Wife began working as a part-time caregiver. At the time of the appeal hearing, she was unemployed and receiving $378 per week in unemployment benefits and $611 in Social Security benefits. Her health prevented her from lifting anything over 25 pounds.
Husband started a heating and air conditioning business during the marriage and incorporated in 2004. He paid himself an annual salary of around $30,000. He continued to work in a limited capacity after suffering a heart attack in 2019, and, at the time of the hearing, had pension benefits of around $450 and a little over $100,000 in a 401(k) plan.
Background
The parties owned a jointly-deeded property, and they lived together there until their separation in 2018. Husband liquidated stock he inherited from his grandmother to pay for the purchase of the land. He also obtained a home equity line of credit on his separate property to build the home on the lot. Throughout the marriage, Husband paid the marital home expenses, including the mortgage, insurance, utilities, and taxes. Wife paid the cable bill and bought groceries.
Prior to the equitable distribution hearing, the parties filed a pre-trial order in which they outlined their disagreement regarding whether Husband’s Racetrack Road property was marital or separate. However, they both agreed the property should be distributed to Husband.
The parties also disagreed regarding the classification of the equity line of credit on the Racetrack Road property. Wife contended it would be mixed property and assigned to Husband while Husband stated it should be marital and assigned to him.
The Decision and the Appeal
The marital home and equity line of credit were distributed to Husband, with the trial court awarding him marital property and debt in the amount of $217,189.44, and Wife was awarded an amount of -$7,499.20. Because Wife did not contribute her own money toward the purchase or maintenance of the marital home, Husband was awarded the property. Wife appealed.
The Court of Appeals affirmed the lower court’s ruling because it was supported by the facts. Specifically, there were multiple factors from North Carolina law that supported an unequal distribution of the property and debts. Contact an experienced family law attorney for help with your equitable distribution matter.