Divorce in North Carolina? Own Real Estate? Here’s What You Should Know

Divorce is never easy, and when real estate is involved, things can become even more complicated. Whether you own a marital home, rental property, land, or vacation home in North Carolina, it’s important to understand how the law treats property division during divorce.

As a REALTOR® here in North Carolina, I’ve seen how critical it is for divorcing couples to be informed before making decisions about real estate. Here’s what you need to know:

1. North Carolina Is an “Equitable Distribution” State

In North Carolina, marital property is divided using the principle of equitable distribution. That doesn’t always mean a 50/50 split—it means what the court considers fair.

• Marital property generally includes assets acquired during the marriage, including real estate.

• Separate property includes property owned before marriage, or property received as a gift or inheritance, as long as it has been kept separate.

• If separate property was commingled with marital funds (for example, if both spouses paid the mortgage or made improvements), it may be considered marital.

2. Both Spouses Must Sign the Deed to Sell

Even if only one spouse’s name is on the deed, North Carolina law requires both spouses to sign when selling real estate—unless a Free Trader Agreement has been signed and recorded.

👉 Important Note: A legal separation is not a divorce. Until a divorce decree is finalized or a Free Trader Agreement is in place, both spouses have legal rights in the property.

3. Options for Handling Real Estate in Divorce

Every divorce situation is unique, but here are the most common options:

• Sell the home and divide the proceeds. Often the cleanest option when neither spouse wishes to keep the property.

• One spouse refinances. If one party wants to stay in the home, refinancing in their name alone may be required to remove the other spouse from the mortgage.

• Co-owning temporarily. Some couples choose to keep the property jointly for a period of time, particularly with investment or rental properties.

4. Don’t Overlook Taxes and Equity

Before making decisions, it’s important to consider:

• Capital gains taxes if the property is sold.

• Equity division—who gets what portion of the value after mortgages and liens are paid off.

• Future liability—remaining on a joint mortgage after divorce can affect credit and finances.

5. Work With the Right Professionals

Navigating real estate during divorce requires teamwork. You’ll want:

• A family law attorney to handle legal agreements.

• A real estate professional who understands divorce sales and negotiations.

• A financial advisor to help plan long-term impacts.

Final Thoughts

Divorce is hard enough—don’t let confusion over real estate make it harder. Understanding your rights and options under North Carolina law can help protect your financial future and make the transition smoother.

If you’re facing divorce and need clarity on your real estate options, I’m here to help. I can connect you with trusted attorneys and guide you through the process of selling, refinancing, or restructuring property ownership.

📞 (336) 567-5843
📧 jessicajbrealtor@gmail.com
🌐 www.jessicajbrealtor.net