In an equitable distribution state like North Carolina, a court will consider several factors to determine whether one person's student loan debt should be considered marital property for purposes of divorce property division. If the debt dates from before the marriage, it will probably be considered separate and will not be subject to division.
North Carolina couples who plan to get married should consider the importance of completing a prenuptial agreement. The main purpose of the legal document is to verify how assets will be allocated if a marriage ends in divorce. In situations in which a married couple divorces and there is no prenup agreement, the manner in which the assets are divided will be determined by state laws.
According to data from the Pew Research Center, older couples in North Carolina and the rest of the United States have been getting divorced at a rate that is twice what it was in the 1900s. People over the age of 50 and who are near retirement will find it particularly important to know how to properly divide their assets, especially their retirement assets, during the divorce process.
For people headed for divorce in North Carolina, the end of a marriage can be complicated not only by the emotional fallout but also by financial complications. This is especially true when a small business owner or entrepreneur decides to divorce. Whether a business owner runs the business on their own or the company is a partnership with one's spouse, the value of the business can be relevant throughout the divorce proceedings.
A qualified domestic relations order is a document that allows divorcing couples to split a 401(k) account or a pension plan without paying high taxes and penalties. Usually, an attorney will prepare a QDRO in accordance with a plan administrator's instructions regarding the rules for the plan. A North Carolina couple should review a QDRO with their attorneys and make sure the order demonstrates the same intent outlined in the divorce agreement.
For North Carolina couples who are going through a divorce, the financial aspects can be particularly worrisome. This is especially the case when the property of the marriage includes a family business that can be difficult to split up using a standard asset division process. Dividing a closely held business can bring with it an array of questions, including establishing a correct valuation, dealing with the business value in relation to other marital assets and handling proper reporting of business-related income.
Retirement accounts may be an individual's largest asset. Therefore, these accounts may become a point of contention during a divorce in North Carolina or anywhere else in America. As a general rule, it is a complex process to divide a 401k or other employer-sponsored plans. If it is not divided properly, there could be negative tax consequences for both parties to the divorce. A Qualified Domestic Relations Order, or QDRO, is used to ensure that such accounts are divided properly.
When you entered a marriage agreement, you probably did so with the ultimate trust in your partner. Sharing your emotions, your finances and even your bed often strengthens that trust, which can prove problematic in that it sometimes makes you blind to the true nature or intentions of your partner.
With all the steps that go into planning for an upcoming wedding and marriage, it can be easy to get caught up in the excitement of it all and leave some of the more mundane tasks until later. While you may be tempted to put off drafting a prenuptial agreement, it is wise, in the "big picture" sense, to resist doing so.
In the song "Home Life" John Mayer insists that "I can tell you this much, I will marry just once and if it doesn't work out, give her half of my stuff. It's fine with me - we said eternity." If you are getting married to your one-and-only, you may feel much the same way - that if things somehow fail to work out, you will not engage in any squabbling over property division. However, it is vitally important to understand that even if you plan to have a long, happy, truly successful marriage and will not engage in in-fighting in the event of a divorce, you, your future spouse and your marriage can truly benefit from the process of drafting a prenuptial agreement.