Quickly find the answers you’re looking for as it pertains to Property Division in North Carolina.
Generally speaking money received as part of the equitable distribution of property incident to a separation is not taxable. If a transfer of property (and money) occurs between spouses within one year of the separation, the law makes the presumption that the transfer was incident to the separation and divorce. If however, the transfer occurs after one year, the presumption is that the transfer is...
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In order to effectively divide a qualified plan – including pension plans, profit-sharing plans, and 401(k) plans – a Qualified Domestic Relations Order (QDRO) must be entered by the Court. It is not sufficient for your separation agreement or divorce decree to state that you are entitled to a portion of your spouse’s retirement. The administrator of the plan will not pay your share to...
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In most instances you can can sell your primary residence without incurring any tax liability. You can make up to $250,000 in profit if you’re a single owner, twice that if you’re married, and not owe any capital gains taxes. There are a few requirements to avoid owing any tax. First, the property you’re selling must be your principal residence. That means you live in it....
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According to express statutory provisions, distribution of marital property must be without regard to the issues of alimony and child support.
When does federal law take precedence over state law in terms of equitable distribution? In a limited number of instances, federal law may preempt a State’s right to make a party’s property the subject of equitable distribution. For example, one case has held that social security benefits are not distributable by North Carolina courts, as such distribution is precluded by the anti-assignment and the other...
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Another thing that can affect an ED claim is whether both parties survive. The time of a spouse’s death can make a critical difference in the viability of a pending ED action. The death of a spouse prior to the granting of an absolute divorce, but while the ED claim is pending, will bar ED. However, the death of the spouse following the grant of...
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In general, under prior law reconciliation was deemed to void the executory or unperformed provisions of a separation agreement that contained property provisions. The courts now draw a distinction between pure separation agreements, in which separation is of the essence, and contracts in which the parties intend a complete property settlement, unrelated to whether they ever reconcile after a separation. Property settlements are to be...
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In addition to bar by absolute divorce obtained without preservation of an equitable distribution (ED) claim, the other common bar to ED is prior execution of a valid, comprehensive property settlement dividing the parties’ property or otherwise releasing the right to ED. So long as the agreement is duly executed in accordance with the formal statutory requirements, the agreement might bar a subsequent ED pursuant...
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There are various defenses that can be asserted against a claim for equitable distribution including absolute divorce, a prior property settlement, reconciliation, death, and federal law.
In most ED actions, the statutes do not permit one party to recover attorney’s fees from the other party. The one small exception to this rule allows the discretionary award of reasonable attorney’s fees and costs to the owner of separate property who sues the other spouse to regain possession of separate property removed from the marital home or possession of its owner by the other...
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