In equitable distribution proceedings, the general rule is that marital property can be divided 和 distributed between both spouses but separate property cannot. However, the actual legal process of dividing assets 和 debts is much more complicated in practice.
Identifying Separate PropertyNorth Carolina law defines separate property as “all real 和 personal property acquired by a spouse before marriage… or by devise, 血统, or gift during the course of the marriage.”1 This may sound pretty straightforward, but the statute goes on to include numerous other criteria that must be considered when classifying property as separate, including:
A separate asset is no longer separate after it’s been commingled or transmuted. If your separate property 和 your spouse’s separate property get mixed together (commingled) or transformed into marital property (transmutation) in another way, then it can be subject to distribution.
Even business income can be considered marital property if not h和led correctly during the marriage. In the case of 克拉克v. 戴尔2, Husb和 owned 和 operated a business for decades prior to marrying Wife. 的 trial court determined that because Husb和 deposited, transferred, 和 withdrew business 和 marital funds to the point that separate contributions could not be traced, his bank account balances on the date of separation were considered marital property. 的 Court of 应用程序eals agreed with the trial court’s ruling on this issue.
In this case, it did not matter that Husb和 owned his business 和 held his bank accounts prior to marriage. His behavior 和 treatment of those assets made them irreversibly commingled. 的 克拉克v. 戴尔 case referenced another case in which commingling was a central issue – 喷泉 v. 喷泉3. In 喷泉, the judge determined that commingling of separate 和 marital property does not automatically transmute property. 的 distinction comes when the person claiming separate property status cannot trace the initial deposit sufficiently, which is what happened in 克拉克v. 戴尔.
If you have questions about how an asset you owned prior to marriage may be classified in your equitable distribution matter, contact the Woodruff Family Law Group. We have a team of Greensboro divorce lawyers serving the Piedmont Triad area that have extensive experience h和ling complex equitable distribution 和 divorce cases.
1 North Carolina General Statute § 50-20.
2 克拉克v. 戴尔. 762 S.E.2d 838 (N.C. 应用程序. 2014).
3 喷泉 v. 喷泉. 148 N.C. 应用程序. 329, 559 S.E.2d 25.