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- The Business of Marriage
The Business of Marriage
- By Mary Charles Wall
- Published 09/29/2008
- PCWJ Archive
- Unrated
Mary Charles Wall
Mary Charles Wall, Attorney At Law
Colombo Kitchin Attorneys
1698 E. Arlington Boulevard
Greenville, North Carolina 27858
(252) 321-2020
e-mail: mwall@ck-attorneys.com
Web: www.ck-attorneys.com
A familiar adage states: when two people marry, they become one.
When two people marry, not only do they become one, but their finances do as well. Prior to 1981, when a couple divorced, property would pass to the title holder. This proved to be an unjust method for property division, and the State of North Carolina recognized this inequity when it adopted the Equitable Distribution Act in 1981 (N.C.G.S. §50-20). This statute embraces the idea that marriage is a partnership in which both spouses contribute to the marital estate.
Upon dissolution of a marriage, each spouse should receive a presumptively equal portion of the net value of the marital estate. The marital estate is the portion of real and personal property acquired by either spouse during the course of the marriage and prior to the date of separation, but excluding property acquired by a spouse before marriage or by bequest, devise, descent, or gift during the marriage.
Exceptions to this rule do exist. For example, let’s assume Jane Doe inherits $20,000 from her grandmother and invests that inherited money in the purchase of real property, and titles that property as Tenants by the Entirety with her husband, John Doe.
Jane’s $20,000 inheritance loses its separate character and becomes a gift to the marital estate. Basically, this means that John has marital rights to that portion of Jane’s inheritance in the event of a divorce proceeding.
If a spouse files a claim for Equitable Distribution, the claim must be addressed in a Pleading prior to the entry of Absolute Divorce, otherwise, the spouse(s) will forfeit his/her claim to marital property. As a result, the property will pass by title of ownership.
The court’s role is to identify the marital, separate, and divisible property. The court will also determine the net market value of the marital property and debt, and distribute these equally.
Many clients are surprised to learn that marital fault is not a factor in the division of property. For example, a spouse’s infidelity will not relinquish his/her right to marital property.
With that said, North Carolina General Statutes state the court can consider several factors to award an unequal distribution of marital and divisible property and debt, among which include:
•The duration of the marriage and the age and physical and mental health of the parties.
• The need of a parent with custody of a child or children of the marriage to occupy or own the marital residence.
•The expectation of pension, retirement, or other deferred compensation rights that are not marital property
•Any direct or indirect contribution made by one spouse to help educate or develop the career potential of the other spouse
Acts of either party to waste, neglect, devalue or convert the marital property divisible property, or both during the period of separation and before the time for distribution.
When two people marry, not only do they become one, but their finances do as well. Prior to 1981, when a couple divorced, property would pass to the title holder. This proved to be an unjust method for property division, and the State of North Carolina recognized this inequity when it adopted the Equitable Distribution Act in 1981 (N.C.G.S. §50-20). This statute embraces the idea that marriage is a partnership in which both spouses contribute to the marital estate.
Upon dissolution of a marriage, each spouse should receive a presumptively equal portion of the net value of the marital estate. The marital estate is the portion of real and personal property acquired by either spouse during the course of the marriage and prior to the date of separation, but excluding property acquired by a spouse before marriage or by bequest, devise, descent, or gift during the marriage.
Exceptions to this rule do exist. For example, let’s assume Jane Doe inherits $20,000 from her grandmother and invests that inherited money in the purchase of real property, and titles that property as Tenants by the Entirety with her husband, John Doe.
Jane’s $20,000 inheritance loses its separate character and becomes a gift to the marital estate. Basically, this means that John has marital rights to that portion of Jane’s inheritance in the event of a divorce proceeding.
If a spouse files a claim for Equitable Distribution, the claim must be addressed in a Pleading prior to the entry of Absolute Divorce, otherwise, the spouse(s) will forfeit his/her claim to marital property. As a result, the property will pass by title of ownership.
The court’s role is to identify the marital, separate, and divisible property. The court will also determine the net market value of the marital property and debt, and distribute these equally.
Many clients are surprised to learn that marital fault is not a factor in the division of property. For example, a spouse’s infidelity will not relinquish his/her right to marital property.
With that said, North Carolina General Statutes state the court can consider several factors to award an unequal distribution of marital and divisible property and debt, among which include:
•The duration of the marriage and the age and physical and mental health of the parties.
• The need of a parent with custody of a child or children of the marriage to occupy or own the marital residence.
•The expectation of pension, retirement, or other deferred compensation rights that are not marital property
•Any direct or indirect contribution made by one spouse to help educate or develop the career potential of the other spouse
Acts of either party to waste, neglect, devalue or convert the marital property divisible property, or both during the period of separation and before the time for distribution.