Equitable or fair property division is the standard in North Carolina. Judges handling litigated divorce cases generally need to learn about the spouses and the marriage before deciding the best way to divide their property and debts.

Typically, the property division process does not factor in marital misconduct. However, there are exceptions for certain types of inappropriate financial activity. If one spouse intentionally wastes or destroys marital property, the other can ask a judge to consider that dissipation of their marital resources when hearing asset division disputes.

What circumstances might justify allegations of dissipation?

An expensive extramarital affair

Some people cheat because the opportunity suddenly arises. They are at a party and have an encounter that leads to a violation of their marital vows. Other times, adultery involves a pattern of inappropriate conduct, including furtive meetups, secret communications and inappropriate spending while pursing an extramarital romance. If one spouse can review credit card statements and bank records to quantify how much the other spent on an affair, they can ask the courts to consider those amounts when dividing marital property.

The intentional destruction or elimination of marital property

Some people respond to an impending divorce or marital issues with inappropriate conduct. They may attempt to destroy resources that belong to their spouse. Other times, one spouse might give away or sell assets that belong to the couple or to the other spouse as a way of extracting economic revenge. In such scenarios, the spouse who destroys, or sells marital resources for less than their fair market value may be liable for the negative impact their actions have on the overall value of the marital estate.

Questionable pre-divorce spending sprees

Some people don’t destroy property. However, they may spend every cent in a shared savings account or might max out joint credit cards so that there is more debt for the spouses to divide when they divorce. When one spouse engages in unusual spending behaviors immediately prior to a divorce, the other may be able to assert that their actions constitute dissipation. They may be able to request financial accountability for the amount spent or the debts accrued through unusual and inappropriate economic conduct.

Being able to identify and quantify the dissipation of marital assets can help people who are divorcing. Those who understand the rules that govern property division during divorces are in a better position to negotiate or to assert themselves in family court.

Posted in Equitable Distribution | No Comments »

Gantt Family Law welcomes attorney Anna Worley to the team. Anna joins lead attorney Richard Gantt and attorney Max Rodden to provide legal guidance and protection for clients with family law disputes and issues.

Anna Worley brings a wealth of experience to Gantt Family Law as a former District Court Judge with 16 years of service, and an additional 12 years as a family law attorney. Ms. Worley is a member of the North Carolina Board of Certified Family Law Specialists and a DRC-Certified Family Financial Mediator.

We welcome Anna to the team and are grateful for the experience she will bring providing solutions for divorcing spouses and those with other family law concerns.

Posted in Firm News | No Comments »

Spouses preparing for divorce have to think about financial issues. The law protects them by requiring an equitable or fair overall division of marital property. Unfortunately, people often settle early without necessarily asserting themselves effectively. They make concessions that limit how much property they receive.

For example, it is common practice for those preparing for divorce to primarily focus on high-value assets. They make retirement savings or home equity the main priority as they negotiate with their spouse or strategize with their attorney. They argue over what the asset is worth and how to integrate it into the overall property division process. The state requires an equitable distribution of marital property, which allows for a degree of discretion when negotiating or litigating.

Ensuring a realistic valuation and a reasonable approach to high-ticket marital assets is important, but spouses also need to consider personal property. A failure to do so can lead to an uneven and ultimately unfair property division outcome.

Personal assets can also affect property division

The assets that either spouse has acquired during marriage may technically be part of the marital estate. Personal property can be worth tens of thousands of dollars. Personal property consists of assets that people can move with them when they leave their marital home.

Furniture, clothing and kitchen tools are all examples of personal property. Fine art, wine collections and jewelry may also be personal property. Spouses may have accumulated substantial collections of personal property using marital income. It is therefore important to identify and value the personal property belonging to both spouses.

Paintings, collectibles, antique furniture and even designer clothing can substantially contribute to the overall value of the marital estate. While one spouse may not want to keep the hobby equipment or clothing of the other, they need to account for the value of those assets if they want to properly apply equitable distribution rules.

Arriving at a fair solution for marital property requires acknowledging the overall value of a couple’s personal resources in addition to their most valuable shared assets. People who take the time to identify and properly value assets acquired during marriage using marital income can push for a reasonable and fair property division outcome. Being pragmatic and thorough in the preparation stages prior to divorce can help people secure the resources they need to rebuild a better life after it.

Posted in Equitable Distribution | No Comments »

Divorce can be a tumultuous experience, especially when children are involved. Co-parenting often presents ongoing challenges and disagreements even after the legal proceedings end. Learning effective conflict resolution strategies is crucial for divorced parents in North Carolina who want to prioritize their children’s well-being.

If you’re a divorced parent, you understand the importance of maintaining a healthy co-parenting relationship. Disputes about child custody, visitation schedules or parenting styles are common. By mastering conflict resolution techniques, you can minimize stress for yourself and your children and foster a more positive co-parenting environment.

Prioritize communication: Keeping the lines open

Open and respectful communication is the foundation of successful co-parenting. Even when disagreements arise, strive to maintain a civil and productive dialogue with your former spouse.

Focus on clear, concise and respectful communication. Avoid accusatory language or bringing up past grievances. Instead, concentrate on the present issue and work together to find a mutually acceptable solution. Consider using email or text messaging for sensitive topics, as these methods allow you to consider your words and avoid impulsive reactions carefully.

Focus on compromise: Finding common ground

Compromise is essential in any co-parenting relationship. Recognize that you and your former spouse may have different parenting styles and opinions. However, finding common ground and making decisions that are in your children’s best interests is crucial.

Be willing to listen to your former spouse’s perspective and consider their concerns. Flexibility and a willingness to compromise can go a long way in resolving conflicts and creating a stable and nurturing environment for your children. Remember, the goal is to co-parent effectively, not to “win” every argument.

Co-parenting after divorce requires patience, understanding and a commitment to putting your children’s needs first. By prioritizing communication, practicing active listening and focusing on compromise, you can effectively resolve conflicts and create a positive co-parenting experience that benefits you and your children.

Posted in Child Custody | No Comments »

Over the last half century-plus, states have changed their laws to allow a “no-fault” divorce option. While it’s available now throughout the country, states have different requirements for a person to file for divorce without naming a “ground” that typically involves some kind of wrongdoing or serious impairment by their spouse.

Many conservative lawmakers and other public figures have been speaking up about getting rid of no-fault divorce. They claim it makes it too easy for people to end their marriage. 

While those calls for an end to no-fault divorce are particularly loud here in the South, for now, it remains an option for North Carolina couples. That doesn’t mean it can happen quickly, however. Let’s look at the law.

A year-long separation

For a judge to grant an “absolute” divorce, a couple must have lived apart for at least one year. They may be required to prove that they haven’t lived under the same roof at any point during that year.

The separation must be for the purpose of ending their marriage – not, for example, because work or other obligations required one of them to live elsewhere. It’s important to note that at least one spouse must have lived in North Carolina for at least six months prior to the divorce. Therefore, both spouses should continue to reside in the state, at least for the second half of that separation period.

If spouses decide on a no-fault divorce, it’s wise to agree on the separation date, document it in some way and be able to provide evidence of that continued separation. 

Note that a spouse can name a “ground” like alcohol/drug abuse or adultery. However, that doesn’t change the mandatory 12-month separation requirement.

“Incurable insanity” and institutionalization

In North Carolina, a person can also seek a divorce on the grounds of “incurable insanity” of their spouse. That requires a three-year separation, typically because one spouse has been institutionalized. If a judge ruled that they were “insane” at least three years prior, that counts as well. 

That year of separation required for divorce may well require temporary agreements regarding child custody and support, spousal support, division of expenses and more. Therefore, it’s wise to get legal guidance even before the separation begins.

Posted in Divorce | No Comments »

Establishing custody arrangements is standard when parents with children divorce. They have the option of cooperating with one another or going to court and having a judge apply state statutes. Married parents benefit from custody statutes that protect their rights.

While the focus is always on the best interest of the children, judges also take the rights and needs of the parents into consideration when reviewing or establishing custody orders. They grant each parent a portion of parenting time and also legal decision-making authority in all but the most concerning of situations. Unmarried parents may find themselves in a less predictable situation. They may be uncertain about their rights and how to handle custody during a breakup.

What are the custody rules for unmarried parents?

Unmarried parents can set their own terms

As is the case for married couples, unmarried parents can also take total control of the custody process. They may need to consult with child advocates and family law attorneys. However, they can potentially establish their own custody orders based on what their family needs. They can then go to court to have a judge review their arrangements and turn them into a formal custody order.

In cases where unmarried parents do not agree on custody matters, they may need help from a family law judge just like those preparing for divorce. The same basic standards apply, although there is one important difference.

Fathers may need to establish paternity before they can ask for shared custody. Many unmarried couples have already established paternity. They may have filled out paperwork together at the hospital at the time of a child’s birth or a voluntary acknowledgment at some point during their relationship.

If the father has not already established paternity, then he likely needs to do so prior to requesting custody rights. In high-conflict scenarios, fathers may need to ask the courts to intervene and order genetic testing. Once they have officially established paternity, they can then request an allocation of parental rights and responsibilities. Both parents theoretically have the same basic rights under the law once they have established their legal relationship with the children.

Focusing on creating terms that uphold children’s best interests can help unmarried parents navigate the complex process of establishing shared custody in a breakup scenario. Parents may need help learning about their rights and how to handle custody disputes at the end of a non-marital relationship, and that’s okay.

Posted in Child Custody | No Comments »

People preparing for divorce and often want to focus on the future. They need to envision a better life after the divorce to get through the tumultuous times ahead. To create reasonable expectations, they typically have to know what might happen during the divorce process.

That includes having a realistic idea about property division matters. Particularly in scenarios where couples have enjoyed a comfortable standard of living during the marriage and have valuable resources, the possibility of hidden assets could become a serious concern.

When one spouse believes that the other may try to hide money, investments or physical property, they may worry about an unfair property division outcome. How can people track down hidden assets during divorce proceedings?

By following formal procedures

The biggest mistake a spouse could make when they believe their spouse may have hidden assets is to agree to a settlement outside of court. Those who reach an uncontested property division agreement may have very limited options for recourse if they discover that their spouse had hidden assets from them previously. Going through the formal discovery process makes it easier to demand accountability if it turns out that one spouse lied to the other and to the courts about their income or resources.

By reviewing records thoroughly

After receiving discovery documents related to personal holdings, income and marital dots, going over those records extensively is typically necessary. In some cases, there may be obvious discrepancies between the disclosures made by a spouse and the actual financial circumstances of the marriage. Other times, the records may be so complex that individuals struggle to make sense of them. Hiring a forensic accountant can be costly but might be a smart investment when there is reason to suspect hidden assets.

Forensic accountants can trace income and find warning signs of diverted income or hidden assets. Their assistance can be crucial in making sense of a complex financial situation. In scenarios where spouses identify hidden assets, they can seek accountability through the court system. Judges may penalize those who attempt to hide assets or may at least include those hidden assets in the pool of marital property that is subject to division.

Having a plan when preparing for a complex, potentially contentious divorce can help people push for the best outcome possible.

Posted in Equitable Distribution | No Comments »

Issues that affect financial stability can cause major conflicts during divorce. Spouses may also fight over matters that are emotionally relevant to them. For those with children, custody arrangements are often a hot-button issue for the family.

For those without children or with grown children, a family pet might be the top priority during divorce negotiations. In some cases, one spouse may recognize that their health challenges or high-demand career could affect their ability to provide for a pet.

Other times, both spouses want to retain pet ownership after the divorce. They may find it all but impossible to settle the matter on their own. Disputes about important decisions, like who keeps the family cat or dog, often result in divorce litigation. How do family law judges in North Carolina address pets when people divorce?

Pets are part of the property division process

Some couples hope that a judge might establish a shared custody arrangement for their animals. However, that expectation is unrealistic in North Carolina. Like most other states, North Carolina considers pets to be property.

During property division proceedings, a judge determines what the animal is likely worth and factors that economic value into their decision about the pet and other marital property. One spouse keeps the pet, and the value of retaining the pet influences other elements of the final settlement.

Judges do not treat pets as children and typically do not establish shared custody arrangements for household pets. Spouses who understand what rules guide the process can avoid fighting for terms that the courts are unlikely to grant. They may need to prepare to make a difficult decision about a family pet, although they may be able to leverage it for other desired terms during negotiations.

Those who are informed about the process may be able to better present their case in front of a judge. Factors including financial resources and the household schedule, as well as custody of any children who may have bonded with the pet, could potentially influence the decision that the judge makes.

Emotional property division matters, such as who keeps the family pet, often make divorce litigation necessary.  Identifying the matters most likely to inspire a dispute can help people focus their attention on the most important aspects of an upcoming North Carolina divorce.

Posted in Divorce | No Comments »

Parents who are going through a divorce have to think about how their actions during and after the process might affect their children. It’s not always easy to get along with an ex, so some people may have to plan for a high-conflict parenting situation.

Contentious parenting circumstances can have a negative impact on everyone involved, so it’s best to understand some of the challenges that may occur. This knowledge can inspire parents to develop methods for addressing them before the situation devolves to the point that their children suffer.

Communication breakdowns

High-conflict parenting often leads to communication breakdowns. Parents in these situations may struggle to communicate effectively. Misunderstandings because of communication challenges can make the situation even more tense and lead to increased conflict.

For many parents in this situation, treating communication in a businesslike manner may be beneficial. While direct communication is usually necessary, that doesn’t necessarily have to occur through spoken forms. Instead, text messages or emails may reduce the chance of conflict. Both parties can re-read their words prior to sending messages to better ensure that there aren’t any inflammatory statements.

It’s critical that parents try to navigate any conflicts away from their children. Any issues should be discussed privately and calmly. These matters shouldn’t ever be brought up during transitions times because the children need that time to be stress-free as they adjust to switching homes.

Inconsistent parenting styles

Differences in parenting styles are possible in a high-conflict parenting situation. This can confuse and destabilize children. One parent may adopt a lenient approach while the other is stricter, which can lead to confusion. One way that parents may be able to address this is to set consistent rules and expectations for major areas in the children’s life. Some major areas to discuss include education, medical care and faith or religion.

Issues of concern can be outlined in the parenting plan so there’s no doubt about what’s been agreed upon. Having a detailed parenting plan in place can reduce the risk of disagreements in the future.

Posted in Child Custody | No Comments »

A major undertaking during a divorce involves trying to divide the assets that you accumulated during marriage. This includes everything from the marital home to the artwork adorning that home’s walls.

If your family has a business, that business may also be subjected to property division, unless the terms of a marital agreement dictate otherwise. There are several things to consider if you’re dealing with a family business during a divorce when there’s no prenup or post nuptial agreement involved.

Understand the financial reality

The financial state of the business can have a big impact on the property division process. When only one spouse knows about the finances, they may try to minimize the profit on paper so they can benefit from a larger portion of its value. One way they do this is to use tactics to make it look like the income of the business is smaller or the expenses are larger. It typically coincides with the decision to divorce. This is informally known as sudden income deficit syndrome.

Consider all options for the business

There are a few options that are possible when it comes to your family business during a divorce.

• You or your ex can buy the other one out of their share.
• The company can continue to be jointly run.
• The business can be sold and the profits split.
• You can close the company.

In order to make a decision, both spouses need a full overview of the business and what’s possible. Everything related to the outcome of the business should be in writing. This is especially important if you’ll continue to run the company with your ex.

The property division process can be complex, particularly in high-asset divorces that involve a family business. Learning your options and how they can affect the situation is important. Working with a legal representative who can assist with the process can be beneficial so that you can better ensure that your interests are being protected.

Posted in Equitable Distribution | No Comments »