How is a divorce settlement divided?

In North Carolina, the divorce settlement is divided using the principle of equitable distribution of marital property. This means that the assets and property acquired during marriage are divided between the two parties in a fair and equitable manner, regardless of who the legal title holder for the asset or property is. The court will consider a variety of factors when making a determination on equitable distribution including the length of the marriage, age and health of both spouses, the income and earnings of each spouse, separate property owned by each spouse, and any other relevant factors. The marital property is divided into two separate categories: marital property and separate property. Marital property is any property acquired by either spouse during the marriage, and it is typically divided equally between the spouses unless there are certain extenuating circumstances that would make it unjust and inequitable to do so. Separate property, on the other hand, is any property acquired by either spouse prior to the marriage, or acquired outside the marriage, which is not subject to equitable division by the court. When a settlement is reached in court, the division of marital and separate property will be specified in a document called a Property Settlement Agreement. This agreement will usually state the percentage or dollar amount of each spouse’s share of assets and liabilities. The agreement is typically reviewed and approved by the court before the divorce decree is entered.

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How is a divorce settlement divided?

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