Division of Asset Lawyers in Spartanburg, SC

As you start to think about the divorce process, you may be worried about the emotional toll it is going to take on you and your family. However, you are probably also concerned about the financial aspects of the divorce.

Will you be able to support you and your children now that you only have one household income? Is the divorce going to cost a lot of money? And perhaps most importantly, how will your marital assets be divided?

By learning about the division of assets in South Carolina, you can determine what your financial situation will look like and if you’ll have to change careers, request spousal support and/or child support as well as consider selling off some assets like your home, car and household items.

What Are Marital Assets?

Martial assets are generally any assets and debt that you and your spouse acquired together after you got married. That could include things like cars, homes, boats, furniture and other investments, along with credit card debt, personal loan debt, mortgage debt and student loan debt.

Nonmarital assets are generally those that either spouse acquired prior to getting married. For example, one spouse may have received an inheritance when they were a teenager, or the other spouse may have gotten into student loan debt in order to obtain a college education. These assets and debts would usually be considered nonmarital.

How Division of Assets Works in South Carolina

While some states have a community property law where assets earned in the marriage are automatically split 50/50, South Carolina does not. Instead, marital assets in the Palmetto State are divided based on equitable distribution. This means that if the spouses are unable to reach an agreement on their own, the family court will hear from both spouses and then determine what the fair division of assets should be.

Some factors the judge will consider may include:

• How long the marriage lasted and how old the spouses were when they got married
• How much the marital property is worth
• If there are vested retirement benefits for each spouse
• Liens on the marriage property
• Tax consequences that could occur to either spouse
• If one or both spouses needs to go back to school and gain more education and training to earn a living
• How emotionally and physically healthy both spouses are
• If there was any marital misconduct
• If there are any spousal support or child support agreements
• If there are any existing prenuptial or postnuptial agreements that are legally enforceable

The court will not necessarily look at whose name is on the title to a property when determining if it should be included in the marital estate. The property will generally be considered a marital asset as long as it was purchased while the couple was married, and the spouses paid for it (fully or in part) with marital funds. The judge will assess how both spouses contributed to the home either through their labor (sweat equity) or monetary funds.

What Happens During the Division of Assets Process?

During this process, the court will identify the martial assets that will be divided, determine the fair market value of the property, identify the contributions each spouse made to the marriage and then determine what the equitable distribution will be.

How to Divide Properties

The cleanest and easiest way to divide a property is to agree to sell it and both spouses will split the earnings. However, one spouse may want to stay in the house and raise the children there since it is their childhood home. That spouse could agree to transfer the title to the home into their name only and give the other spouse an equivalent (or near equivalent) amount of the remaining marital assets. It isn’t always that easy, though. The person who wants the house may not have good enough credit or a high enough income to refinance the house in their name.

When Both Spouses Want the House

The most complicated outcome is when both partners want to keep the marital home. If only one party can afford to keep the home, it’s likely that the court will allow them to keep it. In this case, the person who does not keep the house will likely get a larger share of the marital estate to compensate for the equity in the home.

If both parties can qualify for the mortgage on their own, their attorneys and the court may have to make some tough decisions. They might decide that the person with more parenting time gets to keep the house, in order to give the kids a more secure and stable environment. If no fair agreement can be reached, the couple may be forced to sell the house.

When No One Wants the House

This is perhaps the easiest and most straightforward option. The parties can sell the house together, divide the proceeds in an equitable manner, and be freed from the home entirely. There is no need to transfer the deed, buy out the other party, or juggle the rest of the marital estate to make the home transfer fair. By working with an impartial realtor, a divorcing couple can make this process as fair as possible.

Dividing Debt

The court may decide to split the debt right down the middle. But what if a credit card is in both your names and the court orders that your spouse is supposed to pay it off? What if they stop making payments? If this happens, the credit card company could still go after you. This could hurt your credit score and make it harder for you to get a mortgage, car loan or other loans in the future. This is an issue you will need to consider and take steps to address in order to protect your financial future.

What About a Prenuptial Agreement?

In South Carolina, a legal prenup may be written and signed by both spouses prior to walking down the aisle. Or a postnuptial agreement could be signed shortly after the couple is married. This agreement lays out in detail how the couple’s assets will be divided in the event of a divorce.

When spouses get divorced, a legally enforceable prenuptial or postnuptial agreement will serve as the roadmap for the division of assets, as long as the court determines that the agreement is fair and does not unreasonably favor one side or the other. 

How Spousal Support and Child Support are Connected to the Division of Assets

Spousal support (alimony) and child support are separate from the division of the marital estate. A judge will decide how much one spouse has to pay the other in spousal support or child support or both. While child support payments are made monthly, spousal support payments may be made in a lump sum or monthly depending on the circumstances.

It is important to note that spousal support payments can be addressed in a prenuptial or postnuptial agreement, but child support payments cannot. Child support is determined by South Carolina guidelines and in keeping with the best interests of the child.

Contact a Knowledgeable and Compassionate South Carolina Family Law Attorney

Divorce and other family legal matters can become extremely complicated. Emotions can get in the way of rational thinking, and people can often lose sight of the big picture and what is most important in the long run. By obtaining skilled legal counsel, you will have an advocate who is working hard to fully protect your interests with an eye toward preserving delicate family relationships at the same time.

For legal guidance with division of assets and any other family law matters in South Carolina, contact the Nowell Law Firm for assistance. Message us online or call our office today at (864) 469-2481 to schedule a free initial consultation. We look forward to serving you!