For many couples in Concord, the house is more than just a building. It is where you built a life, raised children, and invested your savings. When a marriage ends, deciding what to do with the home is often the most emotional part of the process.
You may be worried about where you will live or if you can afford the mortgage on your own. You may want to know if you have to move out right away. These worries are valid concerns. Our knowledgeable property distribution lawyer helps clients in Cabarrus County navigate these decisions with clarity and confidence.
Is the House Marital Property?
Before you can decide what to do with the house, you must determine who legally owns it. North Carolina uses a system called “equitable distribution” to divide property. Under N.C. Gen. Stat. § 50-20, the court classifies property as either marital, separate, or divisible.
Marital property generally includes all property that you or your spouse acquired during the marriage and before the date of separation. It does not matter whose name is on the deed. If you bought the house while you were married, the law usually assumes it is marital property.
Separate property is different. Separate property includes real estate owned by one spouse before the marriage. It also includes property inherited by just one spouse or received as a gift from someone other than the spouse. If you used separate funds to pay for a marital home, things can get complicated. You may have a “mixed” asset that is part separate and part marital.
Our legal team will help you trace the history of your home’s ownership to ensure we identify precisely what portion of the equity belongs to the marriage.
Who Stays in the House During Separation?
One of the first questions we hear is, “Do I have to leave?” The answer depends on your specific situation.
In North Carolina, neither spouse automatically loses their right to the house just by moving out. But moving out can affect your bargaining position later. It is vital to speak with an attorney before you pack your bags.
If the situation at home is hostile, you might seek a “Divorce from Bed and Board,” also called a court-ordered separation. A judge can grant you possession of the home if your spouse has committed specific faults, like abandoning the family or endangering your life.
The court can also enter temporary orders for possession of the home while your divorce is pending. This court order prevents one spouse from selling or damaging the property before a final agreement is reached.
Standard Options for the Home in a Final Settlement
Once we determine the home’s value and classification, you have three main choices. We will help you weigh the pros and cons of each based on your financial goals.
Selling the Home and Dividing Equity
Selling the home and dividing equity is often the cleanest option. You and your spouse sell the house, and you pay off the mortgage and any closing costs. Afterward, you split the remaining proceeds.
This approach works well if neither of you can afford the home on your own, and allows both of you to start fresh in a new place. In Cabarrus County’s active real estate market, selling might provide the cash you need to set up a new household.
One Spouse Buys the Other Out
If you want to keep the house, you can buy out your spouse’s share. Buying out your spouse usually requires refinancing the mortgage into your name alone. You must qualify for the new loan based on your single income.
The spouse keeping the house pays the other spouse their share of the equity. If you do not have enough cash on hand, you might trade other assets. For example, you might keep the house while your spouse keeps a retirement account of equal value.
Co-Ownership (Deferred Distribution)
This option is less common but sometimes necessary. You and your former spouse agree to keep the house together for a set time. Co-ownership often happens when parents want children to finish school in a specific district before selling.
North Carolina courts consider the need of a custodial parent to occupy the marital residence. While co-owning a home with an ex-spouse requires cooperation, it can provide stability for your family during a transition.
The Role of Equitable Distribution
North Carolina law requires an “equitable” division of property, which usually means an equal 50/50 split, but not always. The court looks at many factors to decide what is fair, including:
- The income and liabilities of each party
- The duration of the marriage
- The age and health of both spouses
- The need of the parent with custody to live in the home
If an equal split would be unfair, the court can divide the estate differently. We advocate for a division that protects your financial future.
Navigating Local Court Procedures
Divorce cases in Concord are heard in the Cabarrus County District Court. The local rules and procedures can affect how quickly your case moves. For instance, specific rules govern when you must exchange financial documents or when you must schedule mediation.
Attempting to handle these procedural steps on your own can lead to delays. For example, you must file an “inventory affidavit” listing all your property within 90 days of an equitable distribution claim. A mistake in valuing the home or failing to list it properly in this affidavit can cost you thousands of dollars. Our family lawyer will ensure every document meets the strict requirements of the North Carolina statutes.
We Are Here to Help You Move Forward
Deciding what to do with your home is a big step. You do not have to make that choice alone. At Meridian Law Office, we listen to your story and work to find a solution that helps you feel secure.
Whether you want to keep the family home or sell it and move on, we are ready to assist you.
Contact Meridian Law Office today. Call us at 704-325-8379 to schedule a consultation. Let us help you plan for a stable future.
