Business Interests are Property in North Carolina Divorces

North Carolina law says that anything you and your spouse earned, purchased, or gathered while you are married can be equitably divided in divorce. That includes a business you started after you got married. Even if only one spouse was actively involved in the business, North Carolina law assumes that the other spouse’s income, support, and efforts at home made it possible for you to launch and grow your company. Because of this, each spouse is entitled to an equitable (but not always equal) share of the value of the family-owned business in divorce.

However, who takes actual possession of a family business in divorce depends on negotiation. If you and your spouse agree, you can protect your business assets in how you structure your settlement agreement. Depending on the nature of your business and the roles each spouse played, you might agree to:

• Award one spouse the business and the other spouse other assets, such as the home or retirement accounts
• Buy out the spouse’s interest in a shared business in one lump sum or monthly payments over time
• Dividing up the business into portions each spouse controls, while cooperating as shareholders
• Dissolving the business and entering into agreements over who takes specific clients or accounts
• Selling the business to a third party and dividing the net proceeds

Which option is best for you will depend on your complete financial situation, business history, and many other factors.

How Do North Carolina Courts Put a Value on Family-Owned Businesses in Divorce?

In order to give each spouse their equitable share of business assets, you or the court must put a value on those assets. Often, this requires a business valuation. Your divorce attorney can help you hire an expert to estimate the value of your business based on:

• Market value: What an outside buyer would pay for it,
• Book value: Its current assets and liabilities adjusted by various market factors

Many small business owners do not have a clear understanding of the value of their business. They may undervalue their existing client relationships or overestimate their anticipated growth. That is why having an expert evaluation is important to setting the correct equitable value of the business.

What if You Owned Your Business First?

Sometimes, especially when you inherit a family business, your ownership of the company predates your marriage. Assets owned by either party prior to the marriage are considered the separate property of that party. If you do own stock in a family business, you may want to consider a prenuptial agreement prior to marriage to document your ownership. If you started or inherited the business after your wedding day, you can also use a postnuptial agreement to protect your business assets from being divided during divorce. In these agreements, both spouses (or spouses-to-be) agree that the business assets are not marital from the start.

What if Your Spouse Worked for the Family Business?

If you and your spouse both worked for the family business, separation can sometimes mean a loss of income. You should be prepared to offer temporary post-separation support to allow your spouse time to find replacement employment. Offering a reasonable severance package based on their role in the company is also an option. These options demonstrate your good will and could save you money later in negotiating a fair distribution of the company assets.

Closely Held Businesses with Share Buyback Provisions

If you co-own your family business with parents, siblings, or other partners, you should also pay close attention to your company’s operating agreement. Many closely held businesses will require the business to buy back any shares awarded to a divorcing spouse or other third party. If you do not carefully review these provisions before entering negotiations, your company could lose value and your own shares could be reduced as a result of divorce.

Protect Your Family-Owned Business in Divorce

At the Cox Law Firm, our experienced and compassionate divorce attorneys know how important a family-owned business can be. We understand how to work with couples who share business interests, and how to protect business assets in divorce. We will give you options to avoid closing your business as part of the divorce. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our  Contact Page.

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Will You Have to Pay Child Support if You Have Joint Custody?

Some parents assume that if their child is staying with them that means they won’t have to pay child support. It is generally true that the non-custodial parent will be ordered to pay support to the custodial parent. However, negotiating a joint custody agreement won’t automatically reduce your child support amount to zero. The amount joint custodians will owe depends on the income of both parents, who pays certain expenses for the children, and the number of overnights the kids spend in each parent’s home.

How Your Custody Agreement Affects Child Support Amounts

For most families in North Carolina, setting child support is a math problem. The North Carolina Child Support Guidelines calculate a presumed child support amount based on each parent’s:

• Gross monthly income
• Child support payments for other children (including children from prior relationships)
• Responsibility to support other children without an order (such as in a second marriage)
• Work-related childcare costs
• Health insurance payments and health care costs related to the child

However, which child support calculator applies depends on the parties’ physical custody agreement or court ordered custody arrangement. There are three worksheets that apply depending on whether your family’s custody arrangement involves:

• Primary Custody: Where one parent is the primary custodian for all children included in the child support order
• Joint or Shared Custody: When each parent has at least 123 overnights with each child included in the support order
• Split Custody: When each parent is the primary custodian for at least one child included in the child support order

How North Carolina Child Support Amounts are Calculated in Joint Custody Cases

If you have a shared custody agreement, the base support – or the amount the Guidelines assume you and your co-parent will spend on your children – is increased by half. This accounts for the added expense of maintaining two homes for the child or children. Then, the formula applies percentages that account for the number of overnights the children spend with each parent. The closer your child custody agreement is to a 50/50 parenting division, and the closer the parents’ incomes, the smaller the total net support amount will be.

Why Some Parents End Up Fighting Over Overnights

The North Carolina Child Support Guidelines measure custody based on overnights. While this works for many families, sometimes it can have unfair results when one parent:

• Has visitation is primarily during the day
• Works nights
• Is the daytime childcare provider for pre-school children

In other cases, parents trying to negotiate a separation agreement may fight for overnights they don’t want or may not even exercise as a way to reduce their child support payments. A custodial parent should not sacrifice money they will need to pay their kids’ expenses just to reach a settlement. However, sometimes a slight adjustment in the amount of support can save enough time, effort, and attorney fees to make the reduction worthwhile.

In any of these circumstances, it may make sense to negotiate a Voluntary Support Agreement that adjusts the amount in the Guidelines in a way that is fair to both parties. You may also ask a court to deviate from the North Carolina Child Support Guidelines based on your children’s need or your own inability to pay. However, even in low-income cases, the minimum child support order is $50 per month. If you and your co-parent can’t agree on a child support amount, the judge will make a decision based on the Guidelines and the best interests of the children.

At the Cox Law Firm, our experienced and compassionate child support attorneys understand the North Carolina Child Support Guidelines and how various custody agreements can change the amount each parent will pay. We can help you get the child support you need or avoid paying more than you should. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our Contact Page.

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What is Legal Custody?

There are two types of custody in North Carolina: physical custody and legal custody. Physical custody directs the “physical care of and control over” the child. One North Carolina case defined legal custody as the “right and responsibility to make decisions with important and long-term implications for a child’s best interest and welfare.” This includes the child’s:

• Health care
• Education
• Religious training
• Social interactions

Custody can be awarded jointly between the parties, or solely to only one parent. A joint legal custody order demands that parents reach an agreement about decisions that affect their children’s lives. When they can’t, the resulting legal custody dispute can be expensive and time consuming.

Common Legal Custody Disputes Between Co-Parents

Anytime parents can’t agree on an important issue in their child’s care it may create a legal custody dispute. Some common legal custody disputes include:

1.      School Enrollment

Co-parents often disagree over where their children should go to school. If you can’t, be prepared to offer objective evidence about why the school you prefer is better than the alternative, not just what is most convenient for you.

2.      Special Education Plans (IEPs)

Parents of children with disabilities or special needs often find themselves at odds with teachers, school administrators, and each other. To the extent possible, co-parents should work together with their children’s medical providers to advocate for an individualized education plan (IEP) that meets their child’s needs. However, if they disagree over a diagnosis or plan for their child’s education, they may file a motion in court to resolve the legal custody dispute.

3.      Vaccinations and Other Medical Treatments

Recently the issue of child vaccinations has taken center stage. The CDC and the FDA have now authorized the Pfizer COVID-19 vaccine for teens and kids ages 5-11. However, there is still significant resistance to the vaccine – for adults and children alike. Differing opinions about a vaccine, medication, or medical treatment can create a legal custody dispute. However, parents objecting to the vaccine on religious or philosophical grounds should be prepared – judges often rely on scientific evidence to determine what is in the best interests of the children under their jurisdiction.

4.      Baptisms & Bat / Bar Mitzvahs

Taking your child to church with their grandparents occasionally won’t create a legal custody dispute. However, if you and your co-parent disagree over your child’s religious education, or if your child is coming of age and ready to join the church, synagogue, or other religious community, that might. You should coordinate with your coparent to make sure everyone is involved in these big milestone events, especially when the issue is so personal to the child.

5.      Extracurricular Activities

North Carolina also includes social interactions among the list of legal custody disputes. This includes disagreements over a child’s extracurricular activities. The cost and time involved in these activities can make it hard for a parent with secondary custody to put their child’s social calendar before their own wishes. However, you should always honor your child’s best interests.

What Doesn’t Count as a Legal Custody Issue

Not every decision about your child’s day-to-day activities rises to the level of a legal custody dispute. Whoever is the custodial parent in the moment will generally have authority over:

• Over the counter medications
• Childcare providers
• Diet and nutrition
• Screen time
• Homework

However, if everyday decisions add up to a problem for the child – such as repeatedly missing homework or a bad diet causing dental issues – they could become significant enough to file a motion.

What to Do About Legal Custody Disputes

The North Carolina courts encourage co-parents to resolve their legal custody disputes outside the courtroom. Mediation, co-parenting coaching, and even therapy are all options to facilitate the discussion. However, when you reach an impasse, either parent may file a motion to modify the existing child custody order. Each parent will have an opportunity to present their position and the evidence that supports it. Then the court will issue an order based on the best interests of the child.

Joint legal custody issues are often time sensitive. It is important that you work quickly to resolve your dispute or file your motion in court. At the Cox Law Firm, our experienced and compassionate family law attorneys know how to resolve legal custody disputes. We can help you negotiate with your co-parent, file a motion in court, and advocate for your child’s best interests. Melanie D. Cox is also a North Carolina Dispute Resolution Commission Certified Family Financial Mediator and trained to mediate custody and financial issues. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our  Contact Page.

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Who Can File for Divorce in North Carolina?

It may take two people to start a marriage, but it only takes one person to start a divorce. You don’t need your spouse’s consent to go to court and file a complaint for divorce. The only requirements are that you:

• Live separately from your spouse for a year and a day
• Live in North Carolina for at least 6 months
• File the proper summons, complaint, and related documents
• Pay the $225 filing fee

Learn more about when you can get a divorce in North Carolina.

What is Service of Process and Why Does it Matter?

That doesn’t mean you can get a divorce without your spouse knowing about it, though. After you file your complaint for divorce with the North Carolina family court, you must “serve” those documents on your spouse. Having your spouse “served” just means ensuring they get a copy of the papers you filed with the court. However, you must do this in a way that creates proof of service available to the court. You can’t just hand them the papers yourself. Instead, this is done one of two ways:

• Personal service by a police sheriff
• Sending the documents via certified mail, FedEx, or UPS, requiring a signature

If you choose service by mail, your divorce attorney will need to file proof that your spouse received the documents with the court.

Sometimes finding your spouse can become a problem. There are special procedures for serving documents across state lines, and for seeking “service by publication” if you truly do not know where your spouse is, or they are actively avoiding service. However, your attorney will need to show the steps you’ve taken to find them, or the steps they’ve taken to keep from being served.

What Happens if Your Spouse Won’t Go to Court for Your Divorce Hearing?

If your spouse lives out of state, or doesn’t want a divorce, they may refuse to go to court for your divorce hearing. However, this won’t stop the divorce from happening. North Carolina does not require your spouse to do anything for your divorce to be finalized. They are not required to:

• File an answer
• Sign the divorce judgment
• Go to your court hearing

As long as you can provide proof they were properly served, your divorce can be entered without your spouse’s attendance, consent, or cooperation.

Why Should Both Spouses Be Involved in the Divorce?

So if only one spouse needs to be involved in a North Carolina divorce, why should the other spouse do anything at all? Most often, when a spouse files an answer or additional pleadings in a divorce action it is because they want to court to do more than enter a “simple divorce.”

Unlike in some other states, North Carolina divorce judges are not required to rule on issues of custody or property division unless one spouse specifically requests it. Sometimes, the spouse looking for a divorce may file what is informally called a “simple divorce” –asking only that the marriage to be terminated and nothing more. However, this simple divorce can leave ex-spouses:

• Owning property together
• Facing challenges resolving debts and financial concerns
• Without necessary child support or alimony
• Without a parenting plan or child custody order

If property issues aren’t raised in the divorce itself, both spouses waive the right to have the issue addressed by the court. Unless you and your spouse have already resolved these issues in a separation agreement, both parties may need to be involved in the divorce to make sure they receive a fair resolution to their custody, support, and property concerns.

At the Cox Law Firm, our experienced and compassionate divorce attorneys can help you get divorced with or without your spouse’s cooperation. We can work with you to negotiate a separation agreement and help you file and serve a complaint for  absolute divorce. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our  Contact Page.

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Tip #1: Commit to Co-Parenting Cooperation

The holidays are often a confusing mix of celebrations, busyness, and stress. It can be easy to fall into the old habits and antagonism that ended your marriage or dating relationship with your co-parent. For your children’s sake, if not your ex-spouse’s, double down on your commitment to cooperate with your co-parent in the holiday season to address issues that arise early and with a cool head.

Tip #2: Plan Ahead for Holiday Season Events

The holidays involve coordinating a lot of different schedules, with family members, families, schools, and friends. Celebrations that pop up at the last minute it can throw everything off and force your children to miss something important to them. Share your must-attend events with your spouse as soon as they are scheduled, adding church services, school concerts, and family gatherings into your shared calendar, even if they don’t happen during your parenting time. Ask your children what events they are most excited about. Then talk to your co-parent (ideally outside the kids’ hearing), to make sure they can attend the most important holiday events.

Tip #3: Be Flexible Where You Can

The world’s schedule won’t always line up with your parenting plan. You will need to be flexible to allow your children to attend holiday celebrations, religious services, and social events with both parents. This could mean trading days, allowing slightly longer visitation, or agreeing to celebrate Thanksgiving or Christmas on a different day. You should always put your kids’ best interests first in deciding whether to say yes to a visitation adjustment.

Tip #4: Coordinate Desired Gifts with Your Co-Parent

Visitation isn’t the only topic for co-parenting in the holiday season. Gift giving can create several co-parenting problems of its own:

Problem: Uneven Giving Budgets

When one parent has more discretionary income than the other, kids may not understand why all the best gifts come from Mom or Dad. Child support can help, but the less-privileged parent may still face accusations that they “don’t love” their children as much because they can’t afford to buy the best toys.

Problem: Duplicate Gifts & Returns

If you don’t communicate with your co-parent about gifts, there is a high chance you will duplicate one another’s efforts. This can be disappointing for kids (who “already got that”) and time consuming for parents (who have to handle the returns).

Problem: Gift Choices Creating Favoritism

Not everyone is good at choosing the right gift. If one parent is a more talented gift-giver, it could lead to children, especially teenagers, feeling like the other parent “doesn’t get them.”

Solution: Consider Combined Gift-Giving

The best solution for all these problems is to coordinate or combine gift giving. Depending on how well you and your co-parent get along, you could:

• Agree on a budget or combined pool of money for gift-buying
• Schedule a combined gift-giving session
• Put both parents’ names on the most wanted / most expensive gifts
• Label all gifts as from “Santa”
• Divide up the top wanted items, so both parents get to give a hot-ticket item
• Help kids buy, wrap, and give gifts to your co-parent (that you pay for)

Tip #5: Make Space for Negative Emotions

If this will be your first holiday season co-parenting, remember that it will likely be emotional for both you and your children. Acknowledge if your kids are sad Mom isn’t there on Christmas morning or are upset because you don’t make cookies like Dad does. Do what you can not to take those feelings personally or speak negatively about your co-parent. Instead, take this chance to create new traditions that are unique to your family, so they don’t feel the loss as acutely.

Get Help Resolving Trouble Co-Parenting in the Holiday Season

At the Cox Law Firm, our experienced and compassionate family law attorneys know how to resolve holiday co-parenting disputes. We will help you negotiate with your co-parent to help you resolve your child custody disputes. We also provide mediation services for parties who are represented by attorneys and for individuals who are representing themselves. Melanie D. Cox is a North Carolina Dispute Resolution Commission Certified Family Financial Mediator and trained to mediate custody and financial issues. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our  Contact Page.

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You’re Separating from Your Spouse, Not Your Children

Separation and divorce are very hard on children. Younger kids can feel abandoned by a parent who moves out or feel like they are to blame for the relationship failing. They may try to “fix” the situation, bringing their parents back together. Older kids and teens, who have begun to develop identities separate from their parents, may feel resentful or take sides in a divorce, adding to the animosity and stress.

The best way to minimize the effect of separation on your children is to give them a clear, predictable plan for how they will stay connected with both parents. This means, long before you file for divorce, you and your spouse will need to decide what to do about child custody during your separation.

What Are Your Options for Child Custody While Separate?

As parents, you and your spouse know what is best for your children. You know their routines, how they adapt to change, and whether they need additional structure. You also know your own limits, work schedules, and preferences when it comes to parenting.

Fortunately, parents may agree on just about any child custody arrangements that suit their needs, includes visitation with both parents, and is in the children’s best interests. Common visitation schedules include:

Week On / Week Off

Where kids stay with each parent for a week at a time and visitation exchanges happen on the same day each week.

2-2-3 Schedule

Where each parent has two weeknights and then alternate weekends with the children.

Weekend Visitation

Where one parent is the sole custodian during the week and the other exercises visitation on specific weekends.

School Breaks and Summers

Where one parent is the sole custodian during the school year and the other exercises visitation during school breaks (this is most often used when a parent moves out of state).

You can also build telephone or electronic visitation into your parenting plan. This might mean a short nightly call before bed, or longer video chats in the middle of an extended visitation period. In any case, your children should be allowed to call, text, or communicate with you whenever they need to.

How to Negotiate a Child Custody Settlement Agreement

The key to negotiating a child custody arrangement for your separation is putting your kids’ needs first.

However, if you don’t have the same priorities, or are unable to resolve matters on your own, a North Carolina family law attorney can help you brainstorm solutions and advocate for your preferred schedule. You can also schedule a pre-divorce mediation to work through issues like:

• Child custody and parenting plans
• Child support and post-separation support
• Property division

The resulting settlement agreement will give your whole family a guide to life during separation and speed you along toward an absolute divorce once your one year separation period is over.

What to Do If You Can’t Agree on Child Custody

In high-conflict cases, or whenever you and your spouse can’t agree on what to do about child custody during separation, you can also ask the court to hold a temporary custody hearing. The hearing is limited in time, but it gives you an opportunity to show the Judge why it is in the child’s best interest to live with you.  A North Carolina family court judge will order a custody schedule for the child’s welfare that will stay in place until a permanent order is entered later in the proceeding.

At the Cox Law Firm, our family law attorneys know how to help you settle on a child custody arrangement that works for your family. We will help you negotiate clear child custody and visitation schedules and can represent you in court if the need arises. We also provide child custody mediation services. Melanie D. Cox is a North Carolina Dispute Resolution Commission Certified Family Financial Mediator and trained to mediate custody and financial issues. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our  Contact Page.

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Who Can Receive Alimony Before a Divorce is Final?

Not everyone is eligible to receive alimony (called spousal support in North Carolina) before their divorce is final. Both men and women are eligible. However, there are several requirements you must meet before you can receive pre-divorce support:

• That the parties were legally married (cohabiting partners do not qualify)
• That the person is financially dependent on their spouse
• That the supporting spouse can pay support
• That the dependent spouse cannot meet their current living needs

Being “dependent” isn’t the same as being destitute. An employed would-be dependent spouse can sometimes receive alimony before a divorce is final if his or her own income is not enough to enjoy the same standard of living they are used to from the marriage.

There are also special rules around “illicit sexual behavior.” If you have had an affair or engaged in dviate sexual acts without your spouse’s consent, it will cut off your access to alimony as the dependent spouse. Supporting spouses who engage in “illicit sexual behavior” will be ordered to pay alimony to their dependent spouse unless he or she also was engaged in an affair.

How to Get Postseparation Support

Postseparation support is a form of alimony available to dependent spouses in North Carolina before your divorce is final. State law allows the parties to agree on an amount that the supporting spouse will pay to the dependent spouse periodically (such as by paycheck) during the period of separation. Most often, they are part of a separation agreement signed by the parties. These payments continue until a final judgment of absolute divorce is entered. It can include health insurance coverage, attorney fees and costs, and money to pay household expenses and food.

What If Your Spouse Won’t Agree to Pre-Divorce Alimony?

If you can’t come to an agreement about pre-divorce alimony, you can also file a complaint for “divorce from bed and board.” This legal separation, based on the other spouse’s fault, allows a North Carolina family court judge to award child support and spousal support, and make decisions on child custody. It can be a useful tool to get alimony before your divorce is final in high-conflict cases.

How Much Spousal Support Can You Expect to Receive?

Unlike child support, there is no standardized formula for pre-divorce spousal support or alimony in North Carolina law. Instead, the amount is based on what is fair to both parties based on several factors. The variable nature of spousal support amounts means that you and your family law attorney will need to prepare a clear picture of your financial circumstances, so that the other party, their attorney, and the judge can understand what you will need to be self-sufficient.

What Happens to Postseparation Support When the Absolute Divorce is Entered?

Postseparation support only continues until the judge signs the Judgment of Absolute Divorce. If you receive alimony before your divorce is final, it could run out when the judgment is entered. However, other forms of alimony provide support long after the relationship is over. Depending on your financial circumstances, a judge could order:

• Lump-sum alimony paid all at once or by transferring real or personal property to the dependent spouse
• Permanent alimony paid periodically until death, remarriage, or sometimes cohabitation
• Modifiable alimony, which can be adjusted in the future based on a change in circumstances

North Carolina does not specifically recognize short-term “rehabilitative” alimony, paid for a set period post-judgment. However, you and your spouse may be able to negotiate a form of permanent alimony that ends when:

• The dependent spouse completes college or retraining
• The dependent spouse obtains full-time employment
• The youngest child attending school full-time or graduating

Get Postseparation Support as a Dependent Spouse

At Cox Law Firm, we want to make sure you have the support you need to separate from a supporting spouse. Our divorce attorneys will help you negotiate or advocate for alimony before your divorce is final, and after. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our  Contact Page.

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Your Home Is Generally Part of the Marital Estate

Generally, anything you or your spouse earned, obtained, or accumulated from the date of the marriage to the date of separation is part of the marital estate, subject to division by the court. In most cases, that includes your home. If your equitable distribution case goes to trial a North Carolina family law judge will decide an equitable division of the entire marital estate. Equitable does not always mean equal. If there are not enough other assets to give your spouse his or her share of the home equity, the judge could order that the house be sold and determine how the proceeds will be split.

When is a Home Separate Property?

Sometimes, a house may be separate property:

• When one spouse owned the home prior to the marriage
• The home was inherited or received as a gift
• The house was purchased after the parties separated

The fact that both spouses lived in the home isn’t necessarily the deciding factor. Instead, the judge will look at the funds used to purchase and maintain it. Note that, a house that began as separate property can become partially marital if the parties used marital funds or efforts to cause it to change value over the course of the marriage. This could look like:

• Using post-marriage wages to pay off a pre-marriage mortgage
• Working together to make home improvements
• Paying for household repairs using a joint bank account
• Taking out a second mortgage in both parties’ names

These forms of “active appreciation” entitle the non-owner spouse to a share of the change in value that occurred during the marriage. Determining the appropriate values for this calculation can be complicated, and your North Carolina divorce attorney may recommend hiring an appraiser or a forensic accountant to help.

Does it Matter Who Moved Out When the Parties Separated?

Remember that in a North Carolina divorce, you and your spouse must live separately for a year and a day before filing for divorce. Who moves out of the marital home doesn’t necessarily dictate who will be awarded the home in the divorce; however, it can be harder to get back into the home once you have left. If you have children and they remained in the home, the divorce judge can consider custody of the children as one factor in deciding who should get the marital home.

Can You Afford to Keep Your Home After Your Divorce?

Most North Carolina divorces don’t go to trial. More often, spouses come to agree on an appropriate property division. You and your spouse may agree:

• One party keeps the home and the other receives other assets (such as a 401k or bank accounts)
• One party keeps the home and refinances it to pay the other party his or her equitable share
• One party keeps the home until the youngest child graduates from high school, at which point the house is sold and the proceeds are divided
• Sell the home and divide the net proceeds

Home ownership can be a point of pride, but you must be practical in deciding which property division is right. Carefully consider your post-divorce budget based on your own income, child support, and alimony to determine whether you can afford to keep the home before you fight for it.

Can You be Forced to Sell Your Home?

Yes. A judge can force you to sell your home if:

• There are not enough other assets to give each party his or her share of the marital assets, or
• You are unable to refinance your mortgage to remove your spouse’s name and pay your spouse’s share of the equity

If the judge decides that your interest in the home cannot be split without hurting you or your spouse, he or she can force you to sell your home, pay off the mortgage, and divide the net proceeds.

Protect Your Home During Divorce

At the Cox Law Firm, our experienced and compassionate divorce attorneys know how important a home can be. We will help you protect your home and its value. We will give you options to avoid being forced to sell your home as part of the divorce. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our  Contact Page.

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How is Child Support Calculated in North Carolina?

For most families, the amount of support contributed by each parent is calculated according to set child support guidelines. The appropriate amount is based on each parent’s gross income – the amount paid before taxes and automatic deductions. Then the guidelines apply one of three child support worksheets, based on the parents’ physical custody arrangement:

• Primary custody with one parent
• Joint or shared custody of all children between both parents
• Split custody where some children live primarily with one parent and some with the other

The Guidelines also consider pre-existing child support obligations and each parent’s responsibility to provide for other minor children, work-related childcare costs, and the cost to cover the children on health insurance. Typically, when the worksheets are used, this creates a presumptive child support amount and will become an order unless a judge decides it is not appropriate or one of the parties files a motion to deviate from the child support guidelines.

Child Support in High-Income Families

If the parents’ combined income adds up to more than $360,000 per year, the guidelines no longer apply. In these high-income cases, the court will create a custom child support order based on both parents’ earnings, estates, contributions to childcare and homemaking, conditions, and the child’s lifestyle to date. In these high-income cases, it is especially important to work with an experienced child support attorney to advocate for an appropriate level of support.

What Counts as Income in North Carolina Child Support Calculations?

The NC Child Support Guidelines say income includes “a parent’s actual gross income from any source.” This includes:

• Salary
• Wage income
• Commissions
• Bonuses
• Partner or member disbursements
• Dividends
• Severance
• Rental property income
• Retirement or pension payouts
• Government benefits (SSDI, VA, etc.)
• Unemployment insurance
• Workers’ compensation benefits
• Trust income or annuities
• Alimony or spousal maintenance from someone other than the other parent

The Court will also consider things other than money that a person receives from his or her employer (called in-kind compensation), if those items reduce the person’s living expenses. For self-employed individuals, there are typically many tax deductions that are allowed under the IRS rules, but those deductions are not necessarily allowed for child support purposes. For example, if the business covers cell phone expenses and car payments, those amounts can be added back in to determine the self-employed parent’s income.

What Doesn’t Count as Income for Child Support

Your new spouse or roommate’s income does not count toward your child support. Child support payments you receive for your other children generally don’t count toward your gross income either. In addition, the employer-paid portion of your taxes or health insurance won’t be included in your gross income, even if they appear on your W-2. Perhaps most importantly, means-tested government welfare programs do not count as income. That includes:

• Temporary Assistance to Needy Families (TANF)
• Supplemental Security Income (SSI)
• Electronic Food and Nutrition Benefits
• General Assistance

Self-Support Reserve for Parents with Low Income

In low-income families, the North Carolina Child Support Guidelines create a base standard of living connected to the federal poverty level. Any time a person’s adjusted gross income is below that “self-support reserve,” a minimum support order of $50 is generally appropriate.

Deviations Based on Need

Sometimes, a family’s circumstances don’t fit into the boxes created by the Guidelines. In those cases, one or both parents can ask the North Carolina family court judge to “deviate” from the guidelines based on the child’s reasonable needs, or the parties’ ability to provide support. This could include:

• Special needs
• Extraordinary medical expenses
• Private tuition payments
• A parent’s disability making him or her unable to pay support
• A parent’s ability to pay independent of income

Proving Income for Business Owners and Self-Employed Parents

When a parent doesn’t have a standard salary or wage-based income, establishing that parent’s income can be especially difficult. For business owners it requires the child support attorneys to review the business’s disbursements and in-kind compensation. For commission-based workers, seasonal employees, or self-employed workers, your attorney may need to look further at past years’ income to establish an average amount that should apply going forward.

At the Cox Law Firm, our experienced and compassionate child support attorneys understand the North Carolina Child Support Guidelines and what counts as income, even in unusual family situations. We can help you get the child support you need or avoid paying more than you should. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our Contact Page.

The post What Counts as Income in North Carolina Child Support Calculations? appeared first on Cox Law Firm, PLLC.

Why You Should Settle Child Custody

In most cases, settling your family’s child custody dispute is in everybody’s best interest. No one knows your family as well as you do – not the judge, or your attorneys. While your family lawyer advocate for your child’s best interests in any custody trial, judges’ orders may often include provisions that are simply impractical for your family, such as:

• Visitation exchanges that fall during work hours
• Holiday schedules that don’t match your family’s traditions
• Unresolved transportation issues
• Alternating schedules that separate step- or half-siblings

By working with your attorney and your former spouse or partner to settle child custody and visitation, you can resolve all these questions in a way that benefits your whole family and accounts for all the details of your households.

Settlement Makes Co-Parenting Easier

Settling child custody disputes also removes some of the “us vs them” mentality from your dealings with your co-parent. When you work with the other parent in coming to a resolution, there is not the feeling that someone ‘won’ and the other parent ‘lost,’ which can often happen when you go to court to litigate. Sharing custody of a child means a lifetime of working with another adult over everything from T-ball practice to future wedding arrangements. Doing the hard emotional work to settle child custody disputes out of court puts you both on the same side – your children’s side – and makes it easier to resolve future disputes that can and will arise.

When Settlement Isn’t the Best Choice

However, while most cases settle, some families are better served by taking their child custody case to trial. You may not want to settle your child custody case if:

• You have experienced domestic violence
• You are seeking protective orders
• Your case includes new or difficult legal issues
• Your co-parent has substance abuse issues
• Your co-parent has unreasonable demands

You shouldn’t feel pressured to settle if the proposed visitation schedule doesn’t feel right for you or your children. However, even in some of the above cases, considering your options can help resolve some child-related issues like child support or legal custody, conserving your resources for the most disputed issues.

Options to Settle Child Custody

Sometimes people find it hard to settle because they don’t understand their options when negotiating child custody and visitation settlements. You may assume that you have to use a “standard” visitation schedule – like alternating weekends, or a “week-on, week-off” schedule. The truth is you and your partner can customize your visitation schedule as much as you want.

However, a stable and predictable schedule will help your children understand when they will be with which parent. This can avoid disappointment and frustration that can come when a child makes a playdate or signs up for an after-school activity that they can’t attend because they forgot they would be with the other parent that day.

Alternative Dispute Resolution Options in North Carolina

You can begin working with your attorney to settle child custody issues at any time. Some unmarried families never file a motion in court, relying instead on a child custody settlement agreement. However, when child custody is part of a North Carolina divorce action, or when an informal agreement isn’t enough, you can still use alternative dispute resolution (ADR) techniques – such as mediation – to avoid the time, expense, and hard feelings that come with a custody trial.

Except for domestic violence cases, every family law case in North Carolina is referred to a mediation settlement conference to resolve the family’s financial issues. Mediation allows the parties to work together to find a solution, while arbitration puts the decision in the hands of a privately retained arbitrator, who may have special training relevant to your family’s needs. Talk to your family law attorney about your ADR options to settle child custody based on the details of your case.

At the Cox Law Firm, our experienced and compassionate family law attorneys know how to settle child custody cases and avoid the drawbacks of going to trial. We will help you negotiate clear child custody and visitation schedules, taking advantage of a variety of ADR options to help you resolve your child custody disputes. We also provide mediation services for parties who are represented by attorneys and for individuals who are representing themselves. Melanie D. Cox is a North Carolina Dispute Resolution Commission Certified Family Financial Mediator and trained to mediate custody and financial issues. If you are ready to get started, please get in touch with the Cox Law Firm by calling  704-243-9693 or visiting our  Contact Page.

The post What Are Your Options to Settle Child Custody? appeared first on Cox Law Firm, PLLC.