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Asset division in a divorce can be complex

| Oct 7, 2019 | Divorce

The division of assets during the divorce process can lead to much contention and disagreement between the two parties. One factor to keep in mind is that an agreement between the two on this issue is likely to be approved by a North Carolina divorce court. Otherwise, the court will impose a ruling, which neither party may be particularly happy about. For most couples, the family home is a significant or the most valuable asset owned by the couple, and any asset division must begin with a proper evaluation of it.

If the couple intends to sell the home, the evaluation becomes what the property actually sells for, and the net sale proceeds can be split between the two. If one party wishes to keep the house, there must be a professional appraisal taken to determine the fair market value. The value of the property is then considered to be the fair market value less any amounts owed on a mortgage. If this path is taken, financial advisers caution that there are other issues to consider.

If one party keeps the home, the other must receive either a cash buyout of their 50% share or receive other marital assets equal to that share. In either case, if a mortgage is still to be held on the property, the spouse retaining the property must acquire financing as a single individual, and the title to the property must be changed to reflect one owner.

Many complicated issues are potentially involved in a divorce, such as alimony, spousal support, child custody and child support, in addition to asset division. An experienced family law attorney may offer guidance on the rights and responsibilities of both parties as they move through the divorce process.