How Do I Prove My Property is ''Separate'' During a North Carolina Divorce?

Many spouses are encouraged to hear that they can keep a significant portion of their assets during property division. The assets that you get to keep are called “separate property,” and they could help you rebuild after your marriage ends. An obvious first step is to identify your separate assets while you budget and plan for your life after the divorce is over. But how exactly do you do this? How do you prove that some of your assets are “separate” and therefore ineligible for property division? These are questions you might want to explore alongside an experienced divorce lawyer in North Carolina.

If you’re serious about proving the existence of your separate assets, one of your first steps should be to clearly establish and define your “date of separation.” In North Carolina, the divorce process can only move forward if at least one spouse moves out of the family home. This is because the Tar Heel State enforces a mandatory, one-year “separation period” as a precondition for no-fault divorces.

Once you move out, this one-year waiting period begins. If you do not reconcile with your ex during this period, you can move forward with the actual legal process of your divorce at the end of the 12-month period.

What does this have to do with property division? From your date of separation onward, all assets you acquire with your own money are separate. This means that these assets are not subject to property division.

For example, you might earn $5,000 per month. You may move out on January 1st and earn $60,000 over the next 12 months while you wait for the separation period to end. Perhaps you’ll purchase a new vehicle with part of this money. Maybe you’ll invest some of your earnings in the stock market. Whatever the case may be, these purchases will remain 100% yours after the divorce process ends. You won’t need to divide them with your ex.

As long as you can establish your specific move-out date, you can prove that these purchases are separate assets. For example, you might provide a utility bill that proves you started living in a different home. Maybe you will provide a rental agreement with a landlord. This kind of evidence can be crucial during property division in North Carolina.

Separate property also includes assets you acquired before the marriage. If you want to hold onto these assets, you may need to prove that you purchased them before signing your marriage contract. Examples include real estate, stocks, or vehicles. If you want to prove that these assets are private, you might need transaction records that establish exactly when you purchased them. If you are not sure about how to proceed, consider speaking with an accountant.

If you received an asset as a gift at any time, you can also keep the property without dividing it with your ex. The only requirement is that you prove that someone else gave you the property. For example, your parents might have purchased a vehicle for you. Perhaps you received jewelry or clothing from a grandparent. Whatever the case may be, you need to prove the “gift status” of the asset in order to protect it from division. This could be something as simple as a gift note or a gift card addressed specifically to you.

Lastly, you can keep 100% of the assets you inherit at any time. These assets can be substantial, and the good news is that they’re usually well-documented. For example, you might have inherited cash after your relative passed away. All you would need to do in this situation is provide a copy of a will or beneficiary designation that establishes that you inherited this property.

If you are wondering about the best way to preserve your separate assets during a divorce, consider speaking with a North Carolina property division attorney. There are many ways to prove the existence of your separate assets, but the most appropriate strategies depend entirely on your unique circumstances. As a result, it makes sense to discuss your specific situation with an experienced divorce attorney when approaching property division. Those with lucrative separate assets may want to work with lawyers who have experience with high-net-worth divorces. Continue this conversation with Arnold & Smith, PLLC, today.