That’s why “free consultation” offers can be so appealing.

But here’s the reality: in family law, free is not always better. And sometimes, it can cost you far more in the long run.

Before you decide whether free legal services or even a quick free consultation are right for your situation, it’s important to understand what you’re actually getting (and what you might be missing).

What Are Free Family Law Services in North Carolina?

In North Carolina, free family law services are typically provided by:

• Legal Aid of North Carolina
• Wake County Legal Support Center
• Law school clinics such as Campbell’s Gailor Family Law Litigation Clinic
• Court-provided self-help forms through the North Carolina Judicial Branch

These services are invaluable for people with very limited income and urgent safety needs. They often provide:

• Basic legal information about divorce or custody
• Help completing court forms
• Brief advice sessions
• Assistance with domestic violence protective orders

But these programs are often overwhelmed, underfunded, and limited in scope. They cannot take every case. And they usually cannot provide long-term strategy, financial analysis, or full representation in contested cases.

If your case is straightforward and uncontested, free resources may be enough.

If it’s not? The risks increase significantly.

The Hidden Risk of the “Free Consultation”

Many private attorneys also advertise free consultations. These meetings typically last 15–30 minutes and are designed to determine whether the attorney can take your case, provide general information, and explain their fee structures. They are not designed for deep analysis.

In divorce and property division cases – especially in Raleigh, Cary, Durham, or Chapel Hill – the most expensive mistakes are often financial mistakes that are invisible at first glance.

A brief free consultation rarely includes what may be most important to those seeking family law help, such as:

• Careful review of retirement accounts
• Tax impact analysis
• Business or professional practice valuation issues
• Tracing separate vs. marital property
• Long-term alimony exposure
• Hidden debt allocation risks

And those are the issues that can cost tens, or even hundreds of thousands of dollars over time.

Divorce in North Carolina Is More Financially Complex Than Most People Realize

North Carolina follows equitable distribution law (N.C. Gen. Stat. § 50-20). That means property must be divided fairly (not necessarily 50/50).

What sounds simple on the surface becomes complicated very quickly.

Questions that require careful legal review include:

• Was a retirement account partially earned before marriage?
• Did one spouse receive an inheritance that was later mixed with marital funds?
• Is there goodwill value in a small business?
• Are stock options marital property?
• Who will claim the children for tax purposes?
• What are the capital gains consequences of selling the marital home?

These issues don’t appear obvious in a 20-minute conversation. They require document review, financial tracing, and strategic planning. Even with the help of free resources, the result of these issues differ based on the specifics of your case. 

Without that analysis, you may unknowingly agree to a settlement that looks fair today but harms you long term.

Why Paying for Legal Review Can Save You Money

Many people assume hiring a divorce attorney is “too expensive.”

But consider this:

If a lawyer charges a few thousand dollars to carefully analyze your case and prevents you from:

• Overpaying alimony
• Losing retirement funds you were entitled to
• Taking on unfair marital debt
• Missing tax consequences that reduce your net recovery
• Accepting an undervalued business interest

You may save significantly more than you spend.

In complex Wake County divorcesm particularly those involving:

• Physicians or business owners
• High-income earners
• Real estate portfolios
• Investment accounts
• Deferred compensation
• Executive bonuses
• Professional practices

The cost of not having experienced legal review can be enormous.

Property Division Mistakes Are Often Permanent

Child custody orders can sometimes be modified. Child support can be revisited if circumstances change. But property division in North Carolina is typically final once resolved.

If you sign a separation agreement without fully understanding the value of marital assets, the tax consequences of splitting those assets, or the difference between gross value and net value, you usually do not get a second chance once you’ve agreed to the division.

This is where experienced Raleigh divorce attorneys add real value. They can slow down an aggressive spouse and give you time to examine the financial details carefully, making sure you don’t agree to anything you don’t actually want.

When Free Resources May Be Appropriate

A paid consultation may not make sense for all cases. Speaking to a lawyer is always advised and you may learn of rights you didn’t realize you had, but if you and your spouse are both in agreement with minimal assets with no retirement or business assets to split between the two of you, it may not be necessary. You may be able to answer all of your questions with free resources such as those at the Wake County Legal Support Center or through online resources like Rosen.com.

However, if there is:

• Disagreement about custody
• Dispute over alimony
• Significant marital property
• Business ownership
• Separate property tracing issues
• Complex compensation structures

A deeper legal review is usually worth the investment and you may be leaving money on the table by forgoing a consultation. Sometimes even just meeting with an attorney for an hour is enough to clarify what you need for handling your divorce.

Why Local Experience in Raleigh and Wake County Matters

Family law is governed by North Carolina statutes — but outcomes often depend on local court procedures and judicial expectations.

An experienced Raleigh family law attorney understands:

• How Wake County courts approach equitable distribution
• How local judges evaluate alimony factors
• What documentation is persuasive
• How mediation is typically structured
• What settlement terms are enforceable

That local knowledge is not something you receive in a generic free consultation or from downloadable court forms.

The Real Question Isn’t “Free or Paid?”

The real question is: What is your financial future worth? A few hundred dollars for an hour of an attorney’s time can save you hundreds of thousands of dollars in the long run. 

A careful legal review can help you keep your retirement accounts, avoid tax traps, understand what a fair amount of support would be for your case, and identify complex property issues you may not have considered before. Furthermore, it can save you time and stress in the long run, leading to a quicker, smarter settlement.

If you’re worried about the financial implications of divorce, hiring a divorce attorney even just for strategic consultation and review may be one of the most financially sound decisions you make.

Considering Divorce in Raleigh, Durham, or Chapel Hill?

Divorce is emotional. It’s stressful. It’s uncertain. But your legal decisions don’t have to be rushed or uninformed.

If you’re navigating separation, custody, or property division in the Triangle area, speaking with an experienced North Carolina family law attorney can provide clarity about risks you may not see yet.

Even a paid strategy session focused specifically on your financial picture can help you avoid costly mistakes. Careful planning now can protect your future for years to come.

If you would like to discuss your situation with an experienced Raleigh divorce attorney, contact us or call our office at (919) 787-6668.

Understanding what counts as “fault” and how it can impact your case is critical if you’re separating in Raleigh, Durham, Cary, or anywhere in the Triangle.

What Is a No-Fault Divorce in North Carolina?

Before we discuss fault, let’s look at the typical standard for divorce in North Carolina, no-fault divorce. A no-fault divorce means you don’t need to prove that your spouse did something wrong in order to get divorced.

Instead, North Carolina law allows divorce based on the following criteria:

• You and your spouse have lived separate and apart for at least one year, and 
• At least one of you intends for the separation to be permanent 

That’s it. There’s no requirement to air personal issues in court or assign blame. A couple can file for divorce and walk away without doing anything other than living separately for a year. 

For many families in Raleigh and the Triangle, this simplifies what can otherwise be a stressful legal process. However, this does not resolve other issues that are often incidental to divorce.

What No-Fault Divorce Does NOT Decide

It’s important to understand that a no-fault divorce only legally ends the marriage. It does not automatically resolve everything else a divorce entails, including:

• Child custody and visitation 
• Child support 
• Division of property and debts 
• Division of retirement accounts
• Division of business assets
• Alimony 

All of these issues must be resolved separately. Whether you resolve these issues through a collaborative agreement or by pursuing a court order from a judge, you MUST resolve them prior to divorce or else you legally will not be able to anymore.

In many marriages, these issues are resolved without ever going to court and are agreed to by both parties. However, if there has been fault in the marriage and you sign an agreement without knowing your rights, you may be leaving custody time or money on the table.

What Is “Fault” Under North Carolina Law?

In North Carolina, “fault” is usually referred to as marital misconduct. These are specific behaviors that occur during the marriage, are completely voluntary on the part of the spouse committing them, and result in the degradation of the relationship. They may influence certain legal outcomes depending on how spouses decide to go about their divorce.

Common examples include:

• Adultery 
• Abandonment 
• Cruel or abusive treatment 
• Reckless spending or financial misconduct 
• Substance abuse 
• Indignities that make the marriage intolerable 

These issues can significantly affect what happens once the divorce is filed. Some of the consequences for these actions can last many years or even bar someone from assets they would otherwise have been entitled to.

Types of Fault That May Impact a Raleigh Divorce

Adultery

Adultery is one of the most significant forms of marital misconduct in North Carolina. It is the act of one spouse having sexual intercourse with another person outside of the marriage without the consent of their spouse. Whether called infidelity, cheating, or any other term, the financial consequences can be drastic.

However, it typically only impacts one spouse: the dependent spouse. If one spouse would have otherwise been entitled to alimony but it is found that they committed adultery, this will typically bar them from receiving any alimony. As such, if you believe or have evidence that your spouse has cheated on you and you are the supporting spouse, speak to an attorney before you sign anything. It could be the difference between years of alimony and not paying a penny.

Abandonment

Abandonment occurs when one spouse leaves the other without justification and without intent to return. Key elements for meeting fault include long-term absence, lack of support, and often no warning.

In Wake County courts, abandonment may result an abandoned spouse receiving a “divorce from bed and board,” allowing them to remain in the home and receive financial support. It may also support a claim for alimony or custody depending on the extent of the abandonment.

Cruelty or Domestic Violence

This includes physical abuse, threats, or severe emotional harm. In a divorce, it can impact both the spouse and the children. The bar to meet domestic violence includes any of the following:

1. Intentionally causing or attempting to cause bodily injury;
2. Making the aggrieved person or a member of their family or household be in fear of imminent serious bodily injury;
3. Making the aggrieved person or a member of their family or household be in fear of continued harassment which inflicts substantial emotional distress; or
4. The commission of rape or other criminal sex offense.

Courts in Raleigh and Durham take these claims seriously, and they may affect child custody arrangements, spousal support decisions, or result in a domestic violence protective order.

Financial Misconduct (Waste of Marital Assets)

Also known as “marital waste,” financial misconduct is the intentional hiding, dissipation, or fraudulent depletion of marital assets by one spouse without the knowledge of the other. It may be done for the spouse’s personal gain or even to try to impact property division rulings during divorce. Some examples includes

• Spending large amounts of money on an affair 
• Gambling away marital funds 
• Hiding or transferring assets 

Under equitable distribution laws, a judge may adjust property division to account for this behavior. 

Substance Abuse

Alcohol or drug abuse can have an impact when it comes to divorce, regardless of whether or not the other spouse is aware of the substance use. Illicit drug use or over consumption of alcohol can affect a parent’s ability to responsibly care for their children and the safety of the family within the household.

Furthermore, substance abuse can also affect a couple’s financial stability and may even constitute financial misconduct if a spouse siphons marital funds for their drug habit without the knowledge of their partner.

This is especially relevant in child custody cases in the Triangle area and should not be taken lightly.

How Fault Impacts Key Issues in a Raleigh Divorce

In North Carolina, different types of marital fault affect different parts of a divorce, and understanding these distinctions is especially important in Raleigh-area cases where financial and custody issues can be complex. 

Alimony

Alimony is the area most directly impacted by fault, particularly adultery. If a dependent spouse commits adultery, they are typically barred from receiving alimony. Other conduct like abandonment, cruel treatment, or substance abuse may also impact the duration of the alimony award and the amount of award.  The statute allows a court to review marital misconduct in making an alimony determination.  

Child Custody

For child custody, fault matters only if it affects the child’s well-being. This includes issues like domestic violence, substance abuse, neglect, or unstable behavior. These can significantly impact custody decisions because courts in Wake County focus on the best interests and safety of the child.

Property Division

In contrast, property division (equitable distribution) is generally not based on fault, but financial misconduct (such as wasting marital assets on an affair, hiding money, or excessive spending) can lead to an unequal division of property to compensate the other spouse.

Together, these distinctions highlight that while North Carolina is a no-fault divorce state, certain types of misconduct can still have meaningful legal and financial consequences on the outcome of a divorce.

Proving Fault in a Raleigh Divorce Case

If fault is relevant (especially for alimony or custody), it must be proven with evidence. This can be as simple as testimony from you and your spouse or can get much more complex depending on the fault involved and the issue you are trying to resolve. 

Judges in North Carolina look at all of the available evidence to reach their decision. Examples of evidence may include:

• Text messages, emails, or photos 
• Financial records 
• Witness or expert testimony 
• Private investigator reports 

Because these issues can become complex quickly, it’s important to approach them strategically. Stick to evidence that is relevant to the fault you are alleging and consult with an attorney to determine whether the evidence you want to present is pertinent to your case or not.

Should You Raise Fault in Your Divorce?

Not every case benefits from focusing on fault. In some Raleigh divorces, raising fault can increase legal costs and time without significantly changing the outcome of the case if the fault does not actually influence an issue in your specific case.

However, in some divorce cases, fault can have a critical impact on the results of the divorce. Alimony and child custody especially can be affected greatly, but only if the specific fault directly impacts those issues. For that reason, you should always speak with an attorney to determine whether pursuing fault is in your best interest.

Talk to a Raleigh Divorce Lawyer About Your Situation

Every divorce is different. Whether fault will matter in your case depends on your specific circumstances, finances, and goals.

If you’re dealing with issues like adultery, abandonment, or financial misconduct, getting clear guidance early can make a major difference.

Our divorce attorneys at Rosen Law Firm can help you understand how fault may impact your case and what steps to take next. Contact us or call (919) 787-6668 today for a confidential consultation.

In Wake County (Raleigh, Cary, Apex, and beyond), high-asset and high-profile divorces often involve complicated financial questions, privacy concerns, and intense negotiation. Whether you’re a business owner, physician, executive, or spouse of a high earner, understanding how these cases work under North Carolina law is critical.

This guide explains how high-profile divorce cases are handled in Wake County and what you should expect.

What Makes a Divorce “High-Asset” or “High-Profile” in Wake County?

While all divorces have their own challenges and tense stakes, they don’t typically have the same level of stakes as a high-asset divorce. Even divorce cases where a lot of money is on the line doesn’t always meet the definition of high-asset.

In order to be considered a high-asset divorce, cases typically involve:

• Significant assets (real estate, investments, retirement accounts)
• Ownership of a business or professional practice
• Public visibility (executives, doctors, attorneys, local figures)
• Complex compensation (bonuses, stock options, deferred income)
• Disputes over custody or control of major assets

In the Triangle area, it’s common to see high-asset divorces involving tech professionals, healthcare providers, and business owners. These can become highly publicized affairs due to the nature of those involved. With this comes added challenges, both from trying to manage reputations as well as the cost spent on separating assets and handling things in a timely manner. These often aren’t concerns in a standard divorce.

Key Differences That Matter

Here’s how high-profile divorces differ from standard cases:

1. Financial Complexity

In a standard divorce, finances are usually straightforward. One or both spouses earn a salary, and assets are easy to identify and value.

In a high-asset divorce, the financial picture is often much more complicated.

Financial Challenges in a Standard Divorce:

• W-2 income or hourly wages
• Basic bank accounts and retirement plans
• Limited investment activity

Financial Challenges in a High-Asset Divorce:

• Multiple income streams (salary, bonuses, distributions)
• Investment portfolios (stocks, private equity, real estate holdings)
• Business ownership or partnership interests
• Deferred compensation (stock options, RSUs, executive benefits)

This added complexity often requires financial experts, forensic accountants, and detailed analysis to fully understand the marital estate.

2. Property Division

In most divorces, dividing property is a matter of assigning clear values to common assets. Sometimes there are not even enough assets for spouses to be particularly concerned with their division and it’s not uncommon for spouses to just split with what they each brought into the marriage.

High-profile divorces introduce assets that are harder to value, divide, or even define. There are many intangible assets on the line and depending on factors like the date of marriage, a spouse’s involvement in a business, and whether interests extend beyond state or national borders, property division can get much more complicated.

Issues with Property Division in a Standard Divorce:

• Marital home
• Vehicles
• Checking and savings accounts
• Retirement accounts

Issues with Property Division in a High-Asset Divorce:

• Closely held businesses
• Professional practices (medical, legal, dental)
• Intellectual property or ownership interests
• Complex compensation structures
• Multi-state or international assets

In Wake County, courts apply equitable distribution regardless of how many or what type of assets are involved in the divorce. The difference is that determining what is “fair” becomes far more challenging when assets are not easily liquidated or valued. 

3. Time and Cost

Most people underestimate how much longer a high-asset divorce can take. We often cite that all divorces take a minimum of a year of separation, as that is the legal timeline before a couple can file for divorce. The reality of high-asset divorces is that court battles or mediations can last years beyond that period, racking up significant costs for both parties involved.

Typical Time and Cost for a Standard Divorce:

• Often resolved in a matter of months
• Fewer disputes over valuation
• Lower need for outside experts

Typical Time and Cost for a High-Asset Divorce:

• May take significantly longer due to:
  • Business valuations
  • Income analysis
  • Negotiation over complex assets
• Increased legal and expert costs
• More detailed documentation and discovery

The timeline often depends on how quickly financial information can be gathered and whether both parties are willing to negotiate. Not every high-profile divorce is non-amicable, but with so much on the line there are many opportunities for things to get dragged out.

4. Privacy Concerns

Privacy is rarely a major concern in a standard divorce. However, it can be a central issue in high-asset cases. A person only known for their business prowess or charitable work can suddenly see all press shift to being singly about one of the most painful moments in their life. Anything that comes out in court can have an impact on business and private dealings can become excruciatingly public if the right legal advice isn’t followed.

Privacy Concerns with Standard Divorce:

• Limited concern about public records
• Fewer reputational risks

Privacy Concerns with High-Asset Divorce:

• Concern about public exposure of:
  • Income
  • Business operations
  • Personal matters
• Desire to protect professional reputation
• Increased use of:
  • Confidential settlement agreements
  • Mediation and private negotiation

In Wake County, where court filings are generally public, many high-asset individuals prioritize resolving disputes outside of court whenever possible. While the actual divorce itself will be public, many of the surrounding factors don’t have to be.

5. Legal Strategy

Perhaps the biggest difference between a standard and high-profile divorce is how the case is approached from the beginning. Some cases don’t even need a lawyer or at the very least can reach a reasonable agreement with a little sensible legal advice. High-profile cases are different. They need insightful input from not just attorneys but accountants, real estate appraisers, and other professionals to make sure they are settled fairly.

Legal Strategy for a Standard Divorce:

• Focus on reaching a fair and efficient resolution
• Simplified negotiation process

Legal Strategy for a High-Asset Divorce:

• Strategic focus on:
  • Protecting business interests
  • Minimizing tax consequences
  • Structuring long-term financial outcomes
• Coordinating with financial advisors, accountants, and valuation experts
• Planning for future income, not just current assets

In these cases, decisions made during the divorce can have long-term financial consequences that extend well beyond the final judgment. As such, it is very important to meet with a family law attorney as soon as possible to assure the best outcome.

Can You Avoid Court in a High-Asset Divorce?

Yes, and many couples do. In Wake County, most divorces are resolved using mediation or collaborative divorce. An attorney leads negotiations and, often with the help of a mediator, couples are able to fairly distribute their assets through their attorneys without having to necessarily speak with their spouse directly.

This allows for couples to reach an agreement without ever setting foot in a court room or before a judge. Court is typically only used as a last resort when couples cannot agree or negotiations are highly tense.

Negotiating out of court can be especially important in high-profile cases, where litigation can increase both cost and public exposure, which are already higher than most.

Frequently Asked Questions

Do high-asset divorces always go to court in Wake County?

No. Most are settled through negotiation or mediation to maintain privacy and control. When negotiation fails often parties will employ an arbitrator to avoid a public trial. The arbitrator is hired by both parties and conducts the arbitration like a private court. 

What happens if one spouse owns a business?

The business will be valued and typically awarded to one spouse, with the other receiving compensation. The business valuation process can be very complex and nuanced and requires attorneys and valuation professionals skilled and experienced in business valuation methodologies specific to equitable distribution. 

Is everything split 50/50 in North Carolina?

Not necessarily. The law requires a fair or “equitable” division, which may or may not be equal.

How long do high-asset divorces take?

These cases often take longer due to complexity, valuations, and negotiations, sometimes many months or more.

Key Takeaways

• Wake County divorces, even in high-profile cases, follow equitable distribution (not automatic 50/50 splits)
• High-asset cases often involve businesses, complex income, and large asset portfolios
• Privacy can often be preserved through settlement and mediation
• Experienced legal guidance is critical in complex divorce cases

Talk to a Raleigh Divorce Attorney About Your Case

High-asset and high-profile divorce cases require careful planning, financial insight, and a clear legal strategy.

If you’re facing a divorce in Wake, Johnston, Orange, Chatham, or Durham County, our Raleigh family law team can help you understand your options and protect what matters most.

Call Rosen Law Firm today or contact us online to schedule a confidential consultation.

In North Carolina, a prenup can shape how certain issues are handled in a divorce, but the absence of one does not leave you without rights. Courts still follow established rules for property division, debt allocation, and possible spousal support.

If you are facing divorce in Raleigh, Durham, Chapel Hill, or elsewhere in the Triangle, understanding these rules can help you make better decisions and avoid costly mistakes.

What a Prenup Does in North Carolina

A prenuptial agreement is a contract signed before marriage. A valid prenup can make divorce simpler because it may answer key questions in advance, such as who keeps certain assets, how certain debts will be handled, and whether alimony is limited or waived.

Without a prenup, those questions are usually resolved under North Carolina divorce law instead.

What Happens If You Divorce Without a Prenup?

If there is no prenuptial agreement, the court does not just guess or split everything in half. Instead, North Carolina uses equitable distribution, which means marital and divisible property should be divided fairly. Fair does not always mean exactly equal.

That matters because many spouses assume one of two extremes: Everything is automatically 50/50, or “If it is in my name, it is mine.” Neither assumption is always right.

Equitable Distribution in a North Carolina Divorce

The court identifies what is marital property, separate property, and divisible property before deciding what distribution is fair.

In a divorce without a prenup, the court may consider factors such as:

• The income, property, and liabilities of each spouse
• The duration of the marriage
• The need of a parent with custody to occupy or own the marital residence
• Contributions one spouse made to help the other acquire or develop marital property
• Tax consequences of the proposed distribution
• Other relevant circumstances

This is one reason divorcing without a prenup can produce very different outcomes from one case to another.

Marital Property vs. Separate Property

One of the biggest issues in any North Carolina divorce is deciding what property is actually subject to division.

What Is Usually Marital Property?

In general, property acquired during the marriage and before separation is often treated as marital property, regardless of whose name is on the title. That can include:

• Homes purchased during the marriage
• Retirement contributions made during the marriage
• Investment accounts built during the marriage
• Vehicles purchased during the marriage
• Business interests acquired or increased during the marriage

So even if a bank account, car, or brokerage account is only in one spouse’s name, that does not automatically make it separate property.

What Is Usually Separate Property?

Separate property generally includes property a spouse owned before the marriage, along with some property acquired by gift or inheritance from a third party during the marriage, so long as it remains separate and is not mixed into marital property.

Examples may include:

• A home owned before marriage
• An inheritance kept separate
• A gift made to one spouse alone
• Certain premarital retirement funds

Why Commingling Matters

Even property that starts out separate can become harder to protect if it is mixed with marital funds or used in a way that blurs the line between separate and marital ownership. For example, inherited money deposited into a joint account may become harder to trace later.

That is one reason it is so important to get legal advice before agreeing that an asset is shared or separate.

Debt Is Divided Too

Many people focus only on who gets the house, the retirement account, or the savings. But debt can matter just as much.

In a North Carolina divorce without a prenup, marital debts may also be divided as part of equitable distribution. Whether a debt is treated as marital often depends on when it was incurred and whether it was incurred for the benefit of the marriage.

This can include:

• Credit card balances
• Mortgages
• Auto loans
• Personal loans
• Certain business-related debts

A debt being in only one spouse’s name does not automatically end the inquiry.

Can You Get Alimony Without a Prenup?

Yes. A prenup can address spousal support, but if there is no prenup, alimony is still very much on the table in the right case.

In practical terms, alimony may become an issue when:

• One spouse earned significantly more than the other
• One spouse left work to raise children
• One spouse depends financially on the other
• The divorce will leave one spouse at a major financial disadvantage

What Rights Do You Have Without a Prenup?

If you are divorcing without a prenup in North Carolina, you may still have important rights, including the right to:

• Seek your share of marital property
• Protect valid separate property claims
• Ask the court to classify and divide marital debt fairly
• Request postseparation support or alimony when appropriate
• Negotiate a settlement instead of letting a judge decide
• Use mediation or other settlement processes to resolve disputes

In other words, no prenup does not mean no rights. It usually means the default North Carolina rules will control.

Steps to Protect Yourself During Divorce Without a Prenup

1. Gather Financial Records Early

Start collecting documents such as:

• Bank statements
• Retirement account statements
• Mortgage records
• Credit card balances
• Tax returns
• Pay stubs
• Business records, if applicable

The clearer the paper trail, the stronger your position.

2. Make a Full List of Assets and Debts

Create a working inventory of what you own and what you owe. Include property that may seem minor now but could matter later, such as bonuses, stock options, restricted stock, or deferred compensation.

3. Be Careful With Inheritances and Gifts

If you receive an inheritance or personal gift around the time of separation, keep it separate. Do not assume you can sort it out later.

4. Avoid Informal Side Deals

It is common for separating spouses to make quick verbal agreements about who keeps what. That can create confusion and weaken your position. Get advice before signing, transferring, refinancing, or giving up rights.

5. Speak With a North Carolina Family Lawyer

Classification of property can be more complicated than it looks. What feels fair emotionally is not always what the law provides, and what looks obvious at first can change once tracing, valuation, or debt issues are examined.

Frequently Asked Questions

Is everything split 50/50 in a North Carolina divorce if there is no prenup?

Not always. North Carolina starts with the presumption that an equal division is equitable, but the court can order an unequal division if the facts support it.

Does my spouse get half of everything if there is no prenup?

No. Only marital and divisible property are generally subject to equitable distribution. Separate property is usually not divided, although disputes often arise over whether something is truly separate.

Is inheritance protected in a divorce without a prenup?

It can be, if it qualifies as separate property and has not been commingled or otherwise converted into marital property. It is important not to mix your separate property with your earnings and to keep good records so the tracing can be proven. If you have inherited funds and want to keep them as your separate property then do NOT deposit them in the same account as your earnings. And keep statements forever.

Can I get alimony if I did not sign a prenup?

Yes. Alimony does not depend on having a prenup. It depends on whether the legal requirements for alimony are met under North Carolina law.

What if debt is only in my spouse’s name?

That does not automatically mean it is only your spouse’s debt for equitable distribution purposes. The court may look at whether the debt was incurred during the marriage and for the benefit of the marriage.

The Bottom Line

Divorcing without a prenup can feel unpredictable, but you are not without legal protection. North Carolina law provides a framework for dividing property fairly, handling debt, and addressing spousal support when appropriate.

The biggest mistakes usually happen when people assume their title controls ownership, that separate property is automatically safe, that debt will stay with the spouse who incurred it, or that alimony is impossible without a prenup

If you are going through a divorce in Raleigh, Durham, Chapel Hill, or anywhere in North Carolina, getting clear advice early can help you protect what matters most.

Need help understanding your rights in a North Carolina divorce without a prenup? Rosen Law Firm helps clients across the Triangle with equitable distribution, alimony, and complex divorce issues. Contact us or call 919-787-6668 to schedule a consultation.

However, there is an important limitation: the standard formula only applies when the parents’ combined monthly gross income is $40,000 or less (about $480,000 annually).

When families exceed this threshold, which is common for high-income households, entrepreneurs, physicians, executives, and business owners in the Research Triangle area, the court must use a different method to determine an appropriate child support amount.

How Child Support Is Calculated for High-Income Families in North Carolina

For families whose income exceeds the guideline cap, North Carolina courts follow N.C. Gen. Stat. § 50-13.4(c).

Under this law, the court must consider:

• The reasonable needs of the child
• The accustomed lifestyle of the child
• Each parent’s ability to pay

Unlike standard guideline cases, the statute provides only a minimum framework. Judges have broad discretion to determine a fair support amount based on the evidence presented.

This means that in high-income divorces in Raleigh, Durham, and Chapel Hill, the quality and clarity of financial evidence often determines the outcome.

Evidence Courts Consider in High-Income Child Support Cases

While judges are guided by the guidelines set in N.C. Gen. Stat. § 50-13.4(c), they also are looking to see evidence that demonstrates expenses for the child’s life prior to separation. They also look at both parents’ abilities to meaningfully meet those needs. Let’s break down each of these factors and look at what evidence can prove them.

Evidence of the Child’s Reasonable Needs

Courts examine expenses related to a child’s overall wellbeing and development. These may include:

• Housing costs attributable to the child
• Transportation expenses
• Clothing and personal items
• Health insurance and medical care
• Educational expenses
• Work-related childcare
• Tutoring or academic support
• Summer camps and extracurricular programs

Some expenses may benefit the household generally, such as rent, mortgage payments, utilities, and groceries, but courts recognize that these also support the child and therefore may be included when determining support.

Courts generally exclude expenses that appear to be luxuries or primarily benefit a parent rather than the child.

Evidence of the Child’s Accustomed Lifestyle

In addition to basic needs, courts look at the lifestyle the child experienced before the parents separated.

This may include evidence of factors like private school tuition, fees for extracurricular activities and sports, specialized training programs, travel and family vacations, community programs or clubs, and more.

The goal is not to create a windfall, but to preserve the standard of living the child was accustomed to prior to the divorce.

How Courts Review Financial Evidence

To determine appropriate child support, courts often conduct a detailed financial review. Detailed records are far more persuasive than general estimates in these cases.

Parents typically provide:

• Monthly expense summaries
• Bank statements
• Receipts and invoices
• Tuition records
• Childcare documentation

Courts may also consider a lifestyle analysis, which examines both direct child expenses and broader spending patterns such as travel, dining, and entertainment. These analyses are often prepared with the help of financial professionals such as Certified Divorce Financial Analysts (CDFAs).

Evaluating Each Parent’s Ability to Pay

When calculating child support in high-income cases, courts consider all sources of gross income.

This may include:

• Salary or wages
• Bonuses and commissions
• Equity compensation
• Stock options (when realized)
• Business income
• Dividends and investment income

The goal is to determine each parent’s true financial capacity to contribute to the child’s needs.

What If a Parent Underreports Their Income?

In some high-income divorces, one parent may attempt to reduce their reported income in order to lower child support obligations.

North Carolina courts have the authority to impute income when they determine a parent is intentionally underemployed or manipulating income.

Common situations courts examine include intentional unemployment or reduced hours, delayed bonuses or dividends, shifting income into other entities or accounts, or business owners altering compensation structures after separation.

This issue frequently arises in business owner and executive divorces in Raleigh, Durham, and Chapel Hill, where income structures can be more complex.

Presenting a Strong Child Support Case

Clear and transparent evidence is important no matter whether you are the potential recipient or payor of child support. Financial documentation, income, expenses, and proof of finances that are beneficial for the child should be provided by both sides. Here are some specific finances and expenses that parents will want to present depending on which side of the case you are on.

Parents Seeking Child Support Often Present

• A detailed child-related budget
• Tuition and school expenses
• Extracurricular activity costs
• Childcare and transportation expenses
• Health insurance and medical costs
• Additional expenses caused by the separation (such as duplicated household costs)

Parents Paying Child Support Often Provide

• Full disclosure of all income sources
• Documentation separating recurring income from one-time payments
• Evidence challenging new or unsupported expenses that were not historically incurred for the child

Tips for High Income Child Support Litigation

In high-income child support disputes, courts value clarity and accuracy.

Strong cases often include:

Clear financial presentations
Well-organized spreadsheets paired with concise affidavits explaining the numbers help judges understand the financial picture quickly.

Documentation connecting expenses to the child
Receipts, invoices, account histories, and prior spending patterns can show that an expense genuinely benefits the child.

Planning for irregular income
High earners often receive compensation through bonuses, equity vesting, or deferred compensation. Courts may structure support with tools such as bonus true-ups or proportional payment clauses.

Direct payment of major expenses
In some cases, courts order a parent to pay significant expenses — such as tuition or insurance premiums — directly to the provider, which can simplify enforcement and reduce conflict.

Final Thoughts

Once a family’s income exceeds the $40,000 per month guideline cap, North Carolina child support cases become evidence-driven.

For families in Raleigh, Durham, Chapel Hill, and across the Research Triangle, courts focus on:

• The child’s reasonable needs
• The lifestyle the child experienced before separation
• Each parent’s financial ability to contribute

The strongest cases combine complete financial disclosure, detailed documentation, and a realistic child-centered budget that reflects both major expenses and everyday living costs.

Because these cases often involve complex income structures and substantial financial documentation, working with experienced family law attorneys and financial professionals can help ensure the court receives an accurate picture of the child’s needs and the family’s financial circumstances.

If you have questions about your high-income divorce case in Wake, Durham, Chatham, Johnston, or Orange county, contact us or call us at (919) 787-6668. We can advise you on the best strategy for receiving a fair deal on your child support order or represent you in court.

In paragraph eight, we’re referring to the personal property that may be in your house. And so what that means would be furniture, personal effects, clothes, any kind of household personal items in the house.

This paragraph would be for you to determine who gets what. How that process is going to take place. Is one person going to take those things when they leave the house? Is it going to happen later?

And are you going to make any decisions about the personal property later? Keep in mind this paragraph can be revised and done many different ways. But one way would be that on the time and the separation that the person who’s leaving the house takes all the personal property that they want out of the house. This does not include any financial issues.

These are just items of household furniture, artwork, jewelry, clothes. Those types of items would be included in paragraph eight.

Moving on talking about paragraph nine, Automobiles. How to deal with vehicles. One of the main things to think about when you’re transferring a vehicle, or deciding who’s keeping which vehicle. You want to make sure that you understand how are the cars, motorcycles, boats, how are they currently named?

So you want to go back, look, figure out who’s on what title. And if you’re receiving the vehicle, you want to make sure that there’s a process set up for how to transfer that title to you. Now title transfer cannot take place when there is a loan against a vehicle because the person who owns the loan will be holding that title until the loan is paid. So for instance, if you have a car that has a loan on it to Bank of America, Bank of America is holding that title until the loan is paid off.

Well what if that’s going to happen two or three years in the future and you’ve decided that you want to go ahead and sign over this car to your spouse now? One way would be to use a power of attorney just related to the car. And you can go onto the North Carolina DMV website and they have vehicle power of attorney form that you can use and you transfer to your spouse the authority to do anything necessary related to the car in the future. But it’s only for that vehicle.

You want to make sure though that in this paragraph you’re thinking about who’s going to pay car insurance for that car, who’s going to be responsible and liable for that car. So those are the things that need to be included in paragraph nine.

Now paragraph ten is a kind of a catch all provision. You don’t have to have this included. You might instead list out all the intangible personal property. But when referring to intangible personal property, what we mean is checking accounts, savings accounts, financial accounts, stocks, bonds, retirement funds.

Sometimes people will just have a blanket waiver to this one and it will say you’re each just going to keep the accounts that are in your own name and we’re done. So that might be a way to use paragraph ten, the intangible personal property. However, what if an account is joint? What if there is an account where there is a beneficiary designation on that account?

So those are some other things to be thinking about. And as we move through the separation agreement, we’ll talk about how you want to address those as well. So paragraph ten be very careful when you keep this paragraph in here. You need to decide is this the way that we’ve decided to address our finances or do we want to specifically spell out each account and state who’s receiving it?

Or in order to balance the accounts to fifty-fifty, do we want to transfer an account from one spouse to another? You’re not required to do it this way, but this would be one way that you could each keep your own accounts.

In divorce, information equals power. If one spouse controls the finances and the other does not have access to accurate records, the outcome can be unfair, especially when it comes to:

• Property division
• Child support
• Alimony (spousal support)
• Debt allocation

Whether you live in Raleigh, Durham, Chapel Hill, Cary, or elsewhere in the Triangle, protecting yourself begins with collecting documents.

Why Financial Records Matter in a North Carolina Divorce

North Carolina courts require full financial disclosure in divorce cases involving equitable distribution, child support, or alimony.

If income is underreported or assets are hidden:

• A spouse may receive less child support than required under the NC Child Support Guidelines.
• Property may be divided unfairly.
• Alimony decisions may be based on inaccurate income assumptions.

Without documentation, it becomes much harder — and more expensive — to uncover the truth later.

When Should You Start Collecting Documents?

Immediately.

As soon as you know your marriage may be ending, begin gathering financial records. Waiting increases the risk that documents will disappear or become harder to access.

It is not uncommon for one spouse to:

• Remove paper files from the home
• Delete computer records
• Change passwords
• Move funds between accounts

Act early to protect yourself.

What Financial Documents Should You Collect?

Start with anything that shows income, assets, or debts.

Income Records

• Pay stubs (at least 6–12 months)
• W-2s and 1099s
• Tax returns (last 3–5 years)
• Business income records (if self-employed)
• Bonus or commission documentation

Bank & Investment Accounts

• Checking and savings statements
• Brokerage accounts
• Retirement accounts (401(k), IRA, pensions)
• College savings plans

Real Estate & Property

• Deeds
• Mortgage statements
• Home equity lines of credit
• Vehicle titles and loan balances

Business Interests

• Partnership agreements
• Profit and loss statements
• Corporate tax returns
• Ownership documents

Debts

• Credit card statements
• Personal loans
• Business loans
• Student loans

If you are unsure what exists, start with what you know and expand from there.

Where Should You Store the Copies?

If documents are in paper form:

• Make copies.
• Store them somewhere safe outside the home (trusted friend, safe deposit box, attorney’s office).

If records are digital:

• Download copies to a secure device.
• Back them up to secure storage.
• Do not alter original documents.

You should only access information you are legally permitted to access. Do not attempt to break into password-protected accounts or violate privacy laws.

What If You’re Afraid of Causing Conflict?

Many financially dependent spouses hesitate to gather documents out of fear that their partner will become angry.

That fear is understandable.

However, in most situations, quietly copying records you already have access to can be done discreetly. The risk of temporary tension is often far smaller than the financial risk of going into divorce unprepared.

Exception: Domestic Violence

If gathering documents would put you or your children in physical danger, your safety comes first.

In cases involving domestic violence:

• Leave the home safely.
• Seek protective measures.
• Work with an attorney to obtain records later through legal channels.

Your safety is always the priority.

If You’ve Never Handled the Finances

It is common for one spouse to manage all financial matters. If you feel overwhelmed or unsure where to start, you are not alone.

The barriers are often psychological as much as practical. Feelings of fear, confusion, or powerlessness can delay action.

But you do not have to understand every document you collect.

You simply need to secure the information.

Your attorney, a financial advisor, or a forensic accountant can later help you interpret what it all means.

Why Acting Now Saves Money Later

If documents disappear and must be obtained through formal legal discovery:

• Your attorney may need to file motions.
• Subpoenas may be required.
• Forensic accounting may become necessary.

All of that increases legal fees.

The more organized and proactive you are at the beginning of the process, the more efficient (and cost-effective) your case will be.

Most divorce attorneys in Wake County, Durham County, and Orange County bill by the hour. Every hour spent tracking down missing paperwork is an hour that costs you money. Preparation reduces that expense.

Practical Tips for Gathering Records

• Identify times when your spouse is at work or out of town.
• Return documents to the same place and order after copying them.
• Organize records into labeled folders or binders.
• Create a simple spreadsheet listing accounts and balances.
• Keep a running list of missing information to discuss with your attorney.

Organization makes a significant difference when your legal team begins reviewing your case.

How Financial Information Affects Your Divorce Case

Accurate records directly influence:

Property Division (Equitable Distribution)

North Carolina divides marital property under N.C. Gen. Stat. § 50-20. Courts cannot divide what they cannot see.

Child Support

Support is calculated using the North Carolina Child Support Guidelines, which rely heavily on verified income information.

Alimony

Spousal support decisions depend on:

• Income
• Earning capacity
• Financial need
• Marital standard of living

Incomplete financial information can significantly affect the outcome.

Key Takeaways

• Start gathering financial documents immediately if divorce is possible.
• Collect records showing income, assets, and debts.
• Store copies securely outside the home.
• Safety comes first in domestic violence situations.
• Early preparation reduces legal fees and improves outcomes.

Talk With a North Carolina Divorce Attorney

If you are preparing for separation or divorce in Raleigh, Durham, Cary, Chapel Hill, or surrounding areas, having accurate financial information is one of the most important steps you can take.

Our team at Rosen Law Firm helps clients:

• Identify missing financial information
• Secure proper disclosure
• Protect assets during separation
• Navigate equitable distribution, child support, and alimony

Contact us or call us at (919) 787-6668 today to schedule a confidential consultation and protect your financial future.

But separation agreements are also one of the areas where people make the most expensive mistakes.

Because separation agreements are legally binding and often signed during an emotional and stressful time, a small oversight can lead to years of financial or legal problems. We’ve had over 30 years experience drafting and negotiating separation agreements for North Carolina couples, and below are the most common mistakes we see Triangle-area couples make when drafting and settling on a separation agreement. Here’s how you can avoid them.

What Is a Separation Agreement in North Carolina?

A separation agreement is a private contract between spouses who have separated and intend to live apart. Once properly signed and notarized, it can resolve:

• Division of marital property and debts
• Spousal support or alimony
• Responsibility for expenses
• Parenting arrangements (if children are involved)

In Wake County, Durham County, and Orange County, courts generally enforce valid separation agreements as written, even if one spouse later regrets the terms. That’s why getting it right the first time is crucially important. There is no requirement to modify an agreement after the fact if your ex-spouse does not want to. Avoiding these pitfalls with your separation agreement can save extensively on time and money and save you from needing to call your attorney for years to come. 

Mistake #1: Not Treating a Separation Agreement with the Importance it Deserves

One of the biggest mistakes people make is assuming a separation agreement is informal or temporary.

In reality, a separation agreement is a binding legal contract and is difficult (and sometimes impossible) to undo once signed.

North Carolina law has specific requirements and long-term consequences once you sign a separation agreement. Having an attorney look over your separation agreement even if you draft one yourself can create a world of difference.

With this, it’s important to remember that if the agreement is valid, a judge will  enforce it, even if it turns out to be unfair or incomplete. Do not sign anything without fully understanding what you’re agreeing (and not agreeing) to.

Mistake #2: Not Fully Identifying or Valuing All Assets and Debts

Couples often rush through property division just to “be done.” That leads to missed or undervalued assets, such as:

• Retirement accounts (401(k)s, pensions, IRAs)
• Stock options or bonuses 
• Business interests or professional practices
• Hidden debts or tax liabilities

If an asset isn’t properly addressed in the agreement, you may lose your claim to it later.

Common Triangle divorce scenario:

One spouse works in tech, medicine, or higher education and has complex compensation or retirement benefits that aren’t fully disclosed or valued before signing. The other spouse signs an agreement not realizing they could have been entitled to half of those assets if they had known about them.

Mistake #3: Using Generic or Online Separation Agreement Templates

Online forms can be helpful. They can help set a baseline for how things are done so you have a basic understanding of what’s required. We offer many on this website, including a North Carolina Separation Agreement template. 

However, in most cases, they rarely account for:

• North Carolina specific law
• Local court expectations in Wake, Durham, Johnston, Chatham, or Orange County
• Complex financial or custody situations

Furthermore, templates often fail to address bigger issues like how and when assets are transferred, how agreements are executed, and what happens if someone doesn’t follow the agreement. A poorly drafted agreement can lead to future litigation, wiping out any short-term savings. While a template specific to North Carolina separation agreements can be a good start, always make sure you have a lawyer look over any basic template so you can be sure you’re getting everything you want. 

Mistake #4: Agreeing to Terms Just to “Keep the Peace”

It’s common for one spouse to feel pressured to sign quickly to avoid conflict, especially when children are involved. Spouses often try to force terms on the other that are not fair or even reasonable. This can be far worse when one party has a lawyer and the other doesn’t.

In many Raleigh divorces, we frequently see people agree to unaffordable support obligations, unequal property divisions, or vague parenting provisions that don’t make either parent happy just so they can get the divorce done with.

Once signed, “I felt pressured” is usually not enough to undo an agreement under North Carolina law. Never agree to anything you’re uncomfortable with, even when you want to move things along.

Mistake #5: Failing to Address Alimony Correctly

Alimony is one of the most misunderstood parts of separation agreements in the Triangle. North Carolina as a whole has laws surrounding alimony that can entitle some spouses and completely waive the right to it from others. However, if you sign an agreement stating otherwise, none of that matters.

Some common errors we see with North Carolina alimony include:

• Waiving alimony without understanding future needs
• Agreeing to indefinite support without clear limits
• Using vague language that creates enforcement problems

In North Carolina, alimony rights can be permanently lost if they are not properly preserved before divorce. There is no going back once you sign an agreement saying you waive your right to it. If alimony is an issue, the agreement must be drafted with extreme care.

Mistake #6: Overlooking North Carolina Tax Consequences

Separation agreements can trigger significant tax consequences, especially when dealing with retirement accounts, real estate transfers, and alimony payments. People often assume they are getting “half,” without realizing that taxes can dramatically change the real value of what they receive.

For Triangle professionals with higher incomes or complex finances, this mistake can cost tens of thousands of dollars over time. Speaking with a tax professional or a Raleigh divorce lawyer even just for a consultation can avoid a lifetime of overpaying.

Mistake #7: Being Vague About Deadlines and Enforcement

Separation agreements in North Carolina aren’t just about who gets what. They can sometimes create more problems when they don’t clearly spell out when assets must be transferred or how debts will be paid or refinanced.

Vague language invites disputes and forces people back into court. A well-drafted separation agreement should read like a step-by-step roadmap, not a general outline.

Mistake #8: Trying to Handle Everything Without Legal Guidance

While not every separation requires a courtroom battle, most benefit from experienced legal guidance local to your county.

Triangle-area separation agreements frequently involve:

• Significant marital estates
• Professional careers and retirement benefits
• Highly valued startups
• Complex parenting schedules

Even amicable separations can go wrong when legal details are overlooked. Paying to speak to a lawyer today can save you hundreds or even thousands of dollars down the line. Just like you wouldn’t try to repair your car yourself if it broke down, you shouldn’t try to go it alone when your marriage breaks down. This website can give you some valuable tips and tricks, but it won’t replace a lawyer’s years of experience or knowledge on divorce law specific to Raleigh or Durham. 

How to Avoid These Mistakes

If you are considering or negotiating a separation agreement in Raleigh, Durham, Chapel Hill, or surrounding areas:

• Slow down. Be careful not to sign under pressure
• Make sure all assets and debts are fully disclosed
• Understand the long-term financial and legal impact
• Get the agreement reviewed before it’s finalized

A properly drafted agreement can save you years of stress. A rushed or poorly written one can create it.

If you are separated or planning to separate and want to avoid costly mistakes, we can help you understand your options before you sign. We regularly help clients across Wake, Durham, and Orange counties draft, review, and negotiate separation agreements that protect their interests and comply with North Carolina law.

Contact us or call us at (919) 787-6668 to schedule a confidential consultation and get clear guidance on your separation agreement.

Transcript

Part two of the individual monthly expenses for the Wake County financial affidavit includes those expenses that may change from month to month.

This is where if you are the dependent spouse and it’s an alimony trial, you need to spend a lot of time and energy researching these numbers and making sure that they’re very accurate.

Once again, you’ll see that there is the date of separation column as well as the current.

The law states that in North Carolina, for alimony purposes, the dependent spouse is technically allowed the standard of living of the marriage, and sometimes that’s why we need to have both a date of separation as well as the current. Because at the time of trial, sometimes the dependent spouse does not have the ability to pay some of the expenses that are listed here, and so therefore has cut back on some expenses, but at the date of separation may have had a standard of living which is higher, so the court needs to take that into consideration. One of the first things that often can be very different is the medical insurance premium. For a dependent spouse, this number was often included potentially in the supporting spouse’s paycheck and was withdrawn from the paycheck.

So one of the things that the dependent spouse needs to do even if he or she is unemployed is to go ahead and find out from a health insurance broker what would be the monthly premium amount for medical insurance, and try to get try to figure out what would be a comparable plan. So you wanna look at what the deductibles were under the current plan, and and try to figure out what’s the premium cost monthly for that. Also for dental and vision, we’d want to know, well, was there dental and vision? Of course, not always is there dental and vision, and if so, what would it cost?

Uninsured medicals, these would be the deductibles, the co pays.

This we would include, we would really wanna look back and see, well, year to year, are there ongoing expenses? Did you always hit the deductible? Do you have, you know, you know you’re gonna have a certain number of co pays if you have certain specialists?

What is the history? And then of course, the history might be different from what’s happening on kind of an ongoing basis.

It could be medical needs change, and so we’d want to include both of those.

Now keep in mind, the health insurance premium for the children, if there are minor children, is generally going to be included as a part of the child support number. So you want to make sure that if you are the dependent spouse and you’re working on this, that you’re very clear on exactly which piece of this relates to your own individual health insurance premium, as well as uninsured medicals, and what relates to the children. Because the children’s column is most likely going to be provided for in the child support calculation, and the alimony number is most likely gonna come from this self category here.

Transcript

Let’s talk further about the income section and get into more details here. If anything has changed in your monthly gross wages from date of separation to current, you can star it and make a note at the bottom, so you are allowed to provide more information than what is listed here. Next, you’ll have investment interest income, interest dividend income. Most likely you’ll need to look at your last year’s tax return to provide an estimate of this.

For most people, this isn’t going to dramatically affect the income, but for some people this is the bulk of their income, so it becomes really important to determine what is an accurate reflection of what is projected, and what is the date of separation versus the current.

Bonuses and commissions, of course, can be variable, but they do need to be factored in. It could be that we provide this information in a different format. We make a note here that bonuses and commissions are variable, but that the last year’s bonuses provided x amount of monthly income.

Alimony received or child support received this would be alimony and child support most likely received from a different relationship because alimony and child support are being determined in this financial affidavit. Finally, we have just a catch all of other income, and this can be a lot. There’s vacation holiday pay, there’s disability income, social security retirement income, car allowances, cell phone allowances, per diems, so any other income needs to be factored in here.

Now, the mandatory monthly deductions this actually is a very important section. A lot of people assume, well, taxes are what they are, And they are, but you to make sure that your pay stub is actually reflecting the reality of your taxes. So for example, for Social Security taxes, social security taxes are maxed out after someone earns a certain income and that level changes often annually. So every year we have to look and see what is the social security max.

For example, right now it’s in the one hundred thirty range, so if your income goes above a certain amount, the government is no longer going to withhold social security income tax. If you’re figuring this if you are using this affidavit and you’re the supporting spouse and you’re figuring this out as you are, in those last couple months where social security is no longer being deducted, you might forget to put social security in here. The best thing to do if your income is definitely above the the max is to figure out what the max social security would be, what the max amount is, and then project it out over twelve months and add that number in here.

Retirement that’s an issue that comes up quite a bit. Maybe they’ve changed how much they’re putting in retirement, How much they put in retirement date of separation versus current is different. Judges know that retirement withdrawals are voluntary, so often they are looking at this category and figuring out whether or not to add that back into somebody’s income. But you need to accurately reflect what you have coming out at date of separation and what you have coming out currently.

And then finally, and state income tax. Once again, what’s coming out of your pay may not accurately reflect the amount of taxes that you pay. So for example, let’s say that you, have a withholding of a certain amount and you put that because that’s based on what your pay stub says. And then at the end of the year, you get a ten thousand dollars tax refund. Well, means that really your taxes were almost eight hundred dollars a month lower than they should have been here. So you want to try as best you can to accurately reflect it, but it is something that we have to be aware of. We certainly have to write, well, what was it at date of separation?

And then one of the things that we do before trial is we try to make it as accurate as possible so that when the court is going to make determinations, they’re not, you know, changing anything based on a number that’s not what your real net is.

Okay, and then you’ll see of course these are all of the voluntary deductions, but of course for a lot of people like health insurance, dental, vision, those aren’t aren’t really voluntary, but this is what is being taken out of your pay to pay for the premium.

So you do want to separately factor in, well, you doing something different for an HSA or flexible spending account of some sort? That’s a voluntary contribution, whereas, health insurance often is covering the entire family. So you want to make sure that it’s clear, well, how much is the health insurance? How much is the dental? How much is the vision? And sometimes that has changed by the time we get to trial, and so you can reflect that as well.

One really important thing to do here as you’re preparing this document and as you’re figuring out exactly what are your monthly expenses, what are going to be your spouse’s monthly expenses?

If you are covering the family on health insurance, it’s really important to go ahead and figure out how much of that premium cost goes towards your spouse, how much of it goes towards you, and how much of it goes towards the children. So asking your provider, asking your HR at your work to find out and to get some kind of printout or recognition of how much of this health insurance is going for you versus the children versus your spouse. That will help when we’re negotiating exactly what is the cost of health insurance for everybody.

Dental and vision sometimes people don’t have those, you just skip those if you don’t. Life insurance disability these are only if you’re paying a monthly premium out of your check. So there’s going to be a different section here if you’re paying life insurance or disability after you receive your net income. These are only deductions that are coming straight from your check. So this whole first page is really just about detailing out your pay stub. Next, we’re going to cover Wake County financial affidavit expenses.