North Carolina Divorce Lawyers Blog

Articles Posted in Property Division

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Ubertaccio v. Ubertaccio, 588 S.E.2d 905 (N.C. App. 2003) (Levinson, J. concurring)

 

In North Carolina, Equitable Distribution (ED) is one of the common mechanisms by which former spouses divide their personal and real property. Stock options and salary substitutions acquired by a party are typically subject to ED. However, not all stock options are genuine stock options on their face. Nor should all forms of deferred compensation be subject to ED. Below, we discuss a Judge that agreed with the outcome, but not on the rationale of classifying a “stock option” in ED. Continue reading →

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Suppose you inherit money from a family member during your marriage. Is your inheritance subject to being divided under North Carolina’s equitable distribution statute? The brief answer: it depends.

 

North Carolina General Statute § 50-20 defines marital property as all real and personal property obtained and currently owned by either or both spouses during the marriage and before the date of separation unless that property is determined to be separate or divisible property. Separate property under N.C.G.S. §50-20 is real and personal property acquired by a spouse before or during the marriage through devise, descent, or gift. Applying the definitions of marital and separate property from N.C.G.S. § 50-20, any money or property you inherit from a family member would be separate property. Continue reading →

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Generally, military disability benefits are exempt from distribution in equitable distribution actions. Here we see whether the court can consider these benefits as income to satisfy a distributive award pursuant to an equitable distribution order. (In this case, Plaintiff improperly filed a Rule 60 motion to set aside the judgment, which is outside the scope of this blog.) Continue reading →

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Stock options can be offered to employees as an incentive or reward for a job well done. They are typically offered up front as a future benefit after working at a company for a set amount of time and can be purchased at an option price that was previously set. Every company will have a different policy and set of requirements. Some require vesting. In North Carolina, in most circumstances, the court will consider a stock option as a form of deferred compensation. The label is important because it opens up the possibility of stock options to equitable distribution. If they are acquired or received during the course of marriage and before separation, they are very likely marital property, even if the option cannot be exercised until after a judgment of divorce. Likewise, they can be divisible if acquired as a result of employment during the marriage, but not received until after separation. Continue reading →

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Crowell v. Crowell, 809 S.E.2d 325 (2018).

In North Carolina, Equitable Distribution (ED) is one of the mechanisms by which former spouses separate their personal and real property. Sometimes property can be mingled in with third parties, such as in cases where either a trust or a third-party business entity is involved. The case below discusses how a court may handle such an issue. Continue reading →

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In North Carolina, Equitable Distribution (ED) is how property is divided in divorce proceedings. ED can be a complicated process, and much of it relies on timelines and tracing funds. When people get married, a typical occurence is that separate bank accounts are converted to joint accounts. What happens in a divorce proceeding when one spouse claims that the account is not joint but still separate, despite the addition of the other spouse’s name? Continue reading →

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Stowe v. Stowe, ___ N.C. App. ___ (2020).

In North Carolina, Equitable Distribution (ED) is one of the mechanisms by which former spouses separate their personal and real property. What if the during the marriage one party opens a business? Unlike other forms of property, businesses have reputations that are carefully cultivated, as well as patrons and other intangibles that make the business more valuable than what can be accounted for on paper. Courts call this factor Goodwill. In the case below, we explore how one court handled Goodwill for an insurance company. Continue reading →

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Montague v. Montague, 767 S.E.2d 71 (N.C. App. 2014)

Equitable Distribution (ED) is one of the mechanisms by which former spouses separate their personal and real property. What if the during the marriage one party opens a small business? Businesses are subject to ED, and valuation of a business can be very complex. In the case below, we encounter one issue where a family law specialist with experience in Equitable Distribution can be valuable. Continue reading →

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Searcy v. Searcy, No. COA11-11 (N.C. Ct. App. 2011)

In North Carolina, settlement and distribution of marital property can be addressed in a separation agreement. Such an agreement is essentially a contract between the parties. A unique term, “fiduciary,” is sometimes used to describe a relationship between spouses that can be distilled to mean trust. As in contract law, there must be full and truthful disclosure of facts surrounding terms and provisions in a contract between parties who are fiduciaries to each other. Failing to disclose a certain fact can render the contract invalid. But in divorce proceedings, when does the fiduciary relationship end? In the case below, we see that there is no bright line. Continue reading →

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Mejia v. Mejia, No.COA19-438 (May 2020).

In North Carolina, we typically see two types of agreements in the realm of marriage and divorce. First is the Prenuptial Agreement; the second is the Separation Agreement. Separation agreements often contain provisions that resolve issues of child support, alimony, child custody, and distribution of marital property. At times, one party may be strong-armed into signing an agreement. In that case, the party may claim Duress. Below, we discuss a case in which a Husband claimed Duress to prevent enforcement of a Separation Agreement. Continue reading →