One of the most emotionally charged and legally complex parts of divorce is dividing what you own. In North Carolina, the law doesn’t simply split everything down the middle. Instead, the courts distinguish between marital property and separate property, and how your assets are categorized can make a big difference in your outcome.
Whether you’re just beginning the divorce process or preparing for mediation or trial, understanding the difference between what’s “yours,” “theirs,” and “ours” is critical. In this article, we break down what each category means, what can complicate the classification, and how Wake County courts typically approach equitable distribution.
What Is Marital Property?
Marital property includes most assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title or account. This can include:
- Wages earned during the marriage
- Retirement accounts and pensions accrued during the marriage
- Vehicles, homes, and other real estate purchased during the marriage
- Credit card debt or loans taken out during the marriage
Even if an asset is titled in one spouse’s name, it may still be considered marital if it was acquired after the date of marriage and before the date of separation.
What Is Separate Property?
Separate property generally includes:
- Assets one spouse owned before the marriage
- Inheritances or gifts received by one spouse individually
- Personal injury settlements for pain and suffering
- Property explicitly defined as separate in a valid prenuptial or postnuptial agreement
Separate property remains with the original owner and is not subject to division.
What About Mixed or Commingled Assets?
Things get complicated when marital and separate assets are combined. For example:
- If you owned a home before marriage but used joint funds to pay the mortgage or renovate it
- If one spouse added the other to the deed or title of a previously separate asset
These are called commingled assets, and courts may consider them partially marital, depending on the specifics. Tracing the origin of funds and the intent of both parties is key to determining classification.
How Wake County Courts Divide Marital Property
North Carolina uses a system called equitable distribution, which means property is divided fairly—but not always equally. Courts consider many factors, including:
- Each spouse’s income and earning capacity
- Duration of the marriage
- Contributions to the acquisition of property (including non-financial contributions like homemaking)
- Tax consequences
A 50/50 split is often the starting point, but it can shift based on circumstances.
Why This Matters for You
Understanding how property is classified helps you prepare for negotiation and protect what matters most. Don’t assume that just because something is “yours” by name that it can’t be subject to division.
An experienced family law attorney can help identify your marital estate, evaluate risks, and advocate for your fair share—or better.
Let Life Path Legal Partners Help
At Life Path Legal Partners, we guide Raleigh-area clients through property division with clarity and strategy. We combine deep legal experience with personalized support to help you navigate divorce with confidence.
Schedule your consultation today to get a clear picture of what’s truly yours.