Understanding Equitable Division of Property and Debts, South Carolina Family Law

The financial implications of a South Carolina divorce can throw your life into turmoil. Between your everyday budget concerns and long-term retirement plans, separating marital property can be emotionally overwhelming and adds an extra layer of stress to divorce proceedings. 

At Barboza Law, we understand that behind every divorce is a real person navigating uncertainty, stress, and difficult decisions. With years of experience serving families in South Carolina, Attorney Barboza combines trusted legal representation with a human touch that sets us apart. Our compassionate and financially savvy divorce attorney in Rock Hill, SC will take the time to understand your unique circumstances, explain your rights, and advocate for your best interests.

What is Equitable Distribution?

South Carolina is one of 41 states that divide marital property and debts according to equitable distribution. Under this principle, the goal is to divide assets fairly between divorcing spouses. However, fair may not mean a 50/50 split.

Instead, the court will take into consideration the needs and contributions of each spouse. For example, if one spouse sacrifices a career to stay home and raise their children, they may not have the same earning potential or retirement funds. However, their contributions to the marriage and household still entitle them to a fair share of the marital assets. 

Matters and Key Factors Under Equitable Distribution in South Carolina

Several considerations may affect the division of marital property in a South Carolina divorce. What qualifies as fair under equitable distribution depends on the nature of the marriage and other unique factors. Some matters the judge will consider are:

• Financial circumstances of each spouse, including employment history, earning capacity, and whether they own a business, either individually or together
• How long the couple has been married
• Educational background of each spouse, particularly if one spouse has limited career prospects 
• The presence of any valid prenuptial agreements or postnuptial agreements
• Marital contributions, including raising children, managing the household, and supporting the other spouse’s education or career
• Prior financial obligations, including child support or spousal support from a previous marriage
• Marital misconduct, including adultery, excessive drug or alcohol abuse, or domestic violence

Under South Carolina’s grounds for divorce, you may have a fault or no-fault divorce. However, even under a no-fault divorce, marital misconduct may be considered when dividing assets, especially if there were any financial implications. 

What is Not Subject to Equitable Distribution?

Not every asset owned by a spouse is considered part of the marital property in Rock Hill, SC. Instead, the court will first divide assets between marital property and separate property. Separate property is not subject to equitable distribution.

Marital Property

Marital property typically includes assets and debts incurred during the course of the marriage, regardless of whose name is on the title. Typically, this will include:

• Household income
• Homes and vehicles
• Retirement and savings accounts
• Businesses

So long as the assets, debts, or property were acquired during the marriage, they are usually subject to equitable division.

Separate Property

Separate property primarily refers to assets obtained prior to the marriage. However, there are instances when an asset acquired during the marriage can be considered separate property, such as inheritances and portions of personal injury settlements. In addition, gifts given explicitly to one spouse may be regarded as separate property. 

Challenges to Proving Separate Property During a Divorce in Rock Hill, SC

Distinguishing between marital and separate property can become challenging when assets are commingled. For example, suppose a spouse deposits their inheritance into a joint account and uses it as a down payment for their marital home. The funds have been converted into a shared asset and may be subject to equitable division as shared property.

In addition, if one spouse has a home in their name prior to the marriage, but the other spouse helps pay for improvements or remodeling during the union, that property may now be considered a joint asset to an extent. 

It is critical to maintain detailed documentation of assets to prevent unfair division of property. At Barboza Law, we can help protect what is rightfully yours and prevent unintentional commingling of your assets. 

Does Equitable Distribution Apply to Debts? 

Marital property also includes debts and liabilities incurred during the marriage. Under equitable distribution, debts and liabilities are also divided fairly, but may not be strictly equal. 

Debts Subject to Equitable Distribution

Marital debts and liability involve:

• Mortgage
• Credit cards
• Medical expenses
• Personal loans
• Car loans
• Business loans
• Business liabilities and related debts

It should be noted that if a mortgage or a loan is in one spouse’s name, both spouses may still be liable for the debt. For example, if a second home is only in one spouse’s name but both benefited from its use, both may be responsible for the debt.

When is a Spouse Not Responsible for Debt?

Generally, debt acquired before a marriage or after separation isn’t treated as marital debt. For example, if a spouse takes out a student loan prior to the marriage, the debt may be considered separate from marital property. 

When determining how debt is divided, the court may consider a multitude of factors, including:

• When the debt was acquired
•  Who acquired the debt
• If only one or both spouses benefited from the debt
• The ability of each spouse to repay the debt

Managing marital liabilities during a divorce can be highly contentious. A family law attorney in Rock Hill can help ensure that debts and liabilities are allocated fairly.    

Trusted Guidance Through Your Divorce Starts with Barboza Law

Equitable division of property and debts during a divorce can be overwhelming. While the court seeks fairness overall, what is considered “fair” may not always feel that way when applied to your life. A Rock Hill divorce lawyer can explain your options thoroughly, helping you make informed decisions that protect your goals. 

Whether you are untangling high-value assets or dividing shared debts, we understand that protecting what’s rightfully yours is critical. Reach out to Barboza Law today and schedule a confidential consultation.