Financial Mistakes To Avoid In North Carolina Divorce Settlement

Going through a divorce in North Carolina is never easy, and making financial mistakes during the settlement process can only make things worse. If you are considering a marriage annulment, it is important to be aware of the potential financial pitfalls so that you can avoid them. Here are some of the most common financial mistakes made during divorce settlements.

Not understanding the marital property division process

It is vital for you to know which assets the divorce court considers marital and separate property. In North Carolina, any property or assets that you and your spouse acquired from the day you got married to the official date of separation is marital property. This also includes retirement benefits, pensions, restricted stock units, etc.

Not understanding how assets acquired during the marriage are divided

During your divorce, you have equal claim to your marital property as your spouse. However, the court could divide it equitably depending on the following factors: the length of your marriage, child support or alimony obligations from other marriages, contributions as a homemaker, contributions on acquiring your assets, etc. You need to know how all these elements could affect your share of marital property.

Not having a clear picture of your finances

You need to clearly understand your current financial situation to know what you are working with. You should gather all of your financial documents together and review them closely before you make any decisions. If needed, hire a forensic accountant to locate and determine the value of all your marital assets.

Refusing to try arbitration or mediation

Not all divorces must go through court; there are alternative methods that prove to work even better for some spouses. If you want to keep your family law matters private, retain more control over your separation, and avoid the stress of litigation, you can choose to separate through mediation or arbitration.

If you are thinking about getting a divorce, it is important to understand the process and how assets are divided. Remember to take things slow to get what you fully deserve.