Property division is one of the most sensitive topics in a divorce because it involves dividing marital property. Even if you do not own a large savings account or a vacation home, this step is still important. Failing to address it before the divorce’s finalization can lead to financial problems.
Dividing small assets
Property division happens across all types of households, regardless of whether they have high-value assets or not. Even if you only own two cars and some furniture, these are still subject to North Carolina’s equitable distribution.
While separate property is not subject to division, the courts use the source of funds rule to determine what portion of an asset is marital versus separate. If you do not address this, you could lose your right to claim a shared vehicle or even a portion of your spouse’s retirement account earned during the marriage.
Allocating debts
Aside from assets, property division addresses liabilities. In North Carolina, most debts you or your spouse acquired during the marriage constitute joint debts. Managing this aspect can help you distribute the debts fairly, protecting your credit score and paycheck from mistakes you did not make.
Securing your future stability
You deserve to fight for what you have earned, and property division offers you the chance to do so. Creating a financial affidavit is essential, as this serves as a full outline of your income, expenses, assets and liabilities.
If you are unsure how to proceed, seeking legal advice can give you the guidance you need. They can walk you through the elements you must disclose to avoid inaccuracy.