Marital and Non-Marital Property: How Do We Divide?

A common question people ask in divorce cases, is how the court divides property between the spouses. Ultimately, this depends on a few different things. To begin, SC follows Equitable Distribution laws. This means that property is divided in a fair and equitable way. However, fair doesn’t always mean equal. The courts will consider many factors in deciding how to divide property. One of the most important, is whether the property is marital or non-marital.

Marital and Non-Marital Property: How Do We Divide?

First things first, what is marital and non-marital property?

SC Code Section 20-3-630 defines marital property as property acquired by the parties during the marriage. To put it simply, if you bought the property together during the marriage, it will be subject to equitable distribution at the time of divorce. It doesn’t even matter if one name versus the other is on the title. Rather, they just care about the date of purchase.

Are there exceptions?

Property a couple acquires during their marriage is marital, yes. However, there are a few exceptions to the rule. These exceptions are non-marital property. Non-marital property is not subject to division. Some of these exceptions are as follows:

  • Property from an inheritance or gift from a party other than the spouse
  • Property that a written contract signed by both of the spouses excludes, such as a prenuptial agreement
  • Increase in the value of non-marital property. Unless its increase resulted from effort of the other spouse during the marriage
Can non-marital property become marital?

Sometimes property that one spouse owns before the marriage can become marital. This can happen when a spouse deposits pre-marriage money into a joint account during marriage. It can also happen through transmutation.

Transmutation is when the couple treats non-marital property as marital. This is especially common in, say, a home. One spouse might own a home before marriage. Then, during the marriage, both spouses live in the home and put money towards the mortgage, repair, and so forth. Through this process, the home becomes marital property.

Dividing property in a divorce is a hard process. It can be hard to predict how a judge will choose to divide assets. Thus, it is a common concern amongst our divorcing clients. That’s where we come in. By hiring an experienced divorce attorney, you can find someone to fight for your desired outcome— but also prepare you for different possibilities.

Gray Divorce: What it is, Why People Do it, and How it is Negative 

There are many different forms of divorce, and everyone who does it— does so on their timeline. For reasons like these, family therapists and attorneys alike find themselves using the term gray divorce to describe a a certain type of legal separation. But what exactly does this mean? And what drives people to take this route, versus an easier one? While the people taking this route often do it for selfless reasons, it can actually be quite damaging to both them, and the people around them…

Gray Divorce: What it is, Why People Do it, and How it is Negative

First things First: What is a Gray Divorce?

Well, the name is actually quite telling. A gray divorce is a divorce between two people who are later in life. These are typically empty nesters with adult children and grandchildren. These divorcees will wait until their children are grown as a means of ‘protecting them’ from the sadness that is typically associated with children of divorce.

What’s different about this type of divorce?

There are actually quite a few things about gray divorce that make it different than your standard. For starters, there is typically estate planning happening, retired parties, social security benefits, more frequent health insurance usage— and these are really just the heavy hitters.

When you retire, you have a lot more benefits coming in, and you’re likely considering pulling from your retirement account to start using that to settle down for those later years. However, when you choose to separate, all of these benefits will have to be split and reevaluated. When it comes to benefits you’ve been sharing for the majority of a lifetime, that’s no easy feat.

Estate planning, in particular

One of the most difficult aspects of gray divorce is estate planning. For starters, it should be dealt with first and foremost. Estate planning, if you’re unfamiliar, is deciding what goes where in the event of death. Often, a couple will not think to adjust their will’s. In turn, after death, their ex-spouse will have control over all assets.

There is no right time for divorce

There’s no perfect time to separate. While we understand that you were making this decision to ease your family into the idea, it can be damaging to everyone involved. Staying in an unhappy marriage is bad for your health, and it also likely shows more than you believe. No one wants to put their children through a divorce. But, sometimes putting them through that divorce is much more manageable than letting them bear witness to a lifetime of miserable parents. Your needs are important too, even when you have children. So, consider the negatives and positives before choosing to wait ten more years… We wish you luck in this difficult time, and offer our services if you might need them.

Birds Nest Agreement: Will it Work for Me? 

When it comes to child custody, every family has their own ways of making it work. From swapping weekends, holidays, christmases, pick ups, and so forth— you each have things that make your agreement unique. One of the most jarring things about child custody swaps, is moving your child from one home to another on a regular basis. For some families, this just doesn’t feel like the right way to do things. Therefore, a certain agreement, called the birds nest agreement, has become popular for many families. So, we’re going to break it down for you, and help you decide whether this is just the move your family has been looking for. 

Birds Nest Agreement: Will it Work for Me? 

What is a birds nest agreement? 

A birds nest agreement is where you have one home for the each of you: one for Mom, Dad, and Child. In a birds nest agreement, the two parents will swap off time spent in the ‘birds nest’ when it’s their time for custody. In short, whoever has the custody time, will be in the house while the other parent will stay in their respective home. Each member has their own home, and both parents share the responsibilities of the third home. 

What is negative about this? 

Of course, the idea of having a third dwelling seems, and absolutely is, extremely costly. You have to maintain three rents/mortgages. In short, this option isn’t necessarily cost-efficient for anyone involved. 

Furthermore, this agreement can also seriously hinder a new relationship if you’re in one. You aren’t in your own home for half off the time, you share a space with your former spouse, and your time is more divided than it would be in any other situation. However, if this is important to you, it’s just another bump along the way for your relationship. 

However, there are plenty of positives

One: you solve the biggest issue for divorced parents, going back and forth between pick ups and drops offs. Your kid doesn’t have to shuffle their belongings, school work, and themselves between one home and the other. This option is stable, and skips some of the hardest things about a child custody agreement. Communication can be easy to maintain through a common calendar, white board, or other things throughout the house. 

All in all, it’s an expensive, yet stable option 

This type of agreement has it’s fair share of ups and down— as does any agreement. Ultimately, this would be a really nice option for anyone who has the financial ability to do so, and the flexibility to move from spot to spot on a regular basis. Every custody agreement is different, and each family needs something different— which makes this a viable option.