Distribution of Assets after Divorce

The State of North Carolina follows the laws laid down by the Federal District Courts, just as with the majority of the states in the US. However, if you are planning to file for divorce as well as file for bankruptcy, it can be complicated, since divorce laws in North Carolina are unique and can impact the result of both proceedings. According to the website of Marshall & Taylor, PLLC, the timing of filing divorce and bankruptcy can have a significant effect on the legal options that you will be left to pursue. It is therefore critical to consult with a lawyer first before filing any of the legal actions in order to get the best results.

North Carolina follows the equitable distribution statute in an event of divorce or legal separation. This means that the financial status of each spouse is taken into account, and thus the split may not necessarily be 50/50. The “equal” distribution will depend on the net values of both the marital property and the divisible property, unless it has been determined by the court that the division is not equitable. There are many factors that will be considered in order to determine the distribution of property, and these can greatly influence how the proceedings will eventually end. Because of the equitable distribution statute, North Carolina divorce does not automatically demand your properties and debts to be divided. This will only be possible through an application called “petition for equitable distribution”, and failing to do so will forfeit your right to do so during the divorce proceedings. This can be a problem when you have decided afterward of dividing the debts and assets.

Issues with money is one of the leading reasons for divorce, which is why if you believe that your ex spouse is considering filing for bankruptcy, you should immediately contact a lawyer in order to discuss possible legal ways to protect you and your personal assets. Additionally, divorce will have no effect on any alimony and child support payments that the court has already approved, therefore the other spouse will still be liable for them even after the divorce or bankruptcy has been finalized.

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