Financial Analysis for Divorce and Marital Dissolution in North Carolina

By Christopher Skerritt, M.Ed., MBA, Chief of Economic Services · Published · Reviewed

KW Economics prepares financial analyses for divorce and marital dissolution matters venued in North Carolina: income available for support, the value of business interests in the marital estate, and the tracing of separate and marital funds, each presented so that either spouse or the court can examine the figures.

A divorce or marital dissolution matter asks what income each spouse has available for support, what the marital assets, including any business interest, are worth for the division of the estate, and which assets are separate rather than marital. Each is answered from the business books, tax returns, and account histories rather than from the tax return alone. Read the full divorce and marital dissolution analysis guide.

North Carolina courts and expert standards

North Carolina courts apply a reliability inquiry to expert testimony: the trial judge asks whether the economist is qualified, whether the opinion rests on sufficient facts and reliable principles and methods, and whether those methods were reliably applied to the case. A damages report is written to that standard, with each input tied to the record and each data series named.

Where these cases are heard

Highest court: Supreme Court of North Carolina. Federal venues: E.D.N.C., M.D.N.C., W.D.N.C. Court system: nccourts.gov.

Legal framework

Whether North Carolina divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position.

How the analysis is built

The same four steps apply to a divorce and marital dissolution matter venued in North Carolina; the governing framework in North Carolina decides how each finding is applied.

  1. Normalize the business's cash flow for owner compensation, personal expenses paid through the business, related-party dealings, and non-recurring items, listing each adjustment with its source.
  2. Value the business or practice as of the date the governing framework requires, under the income, market, and asset approaches as the facts support, and address personal and enterprise goodwill where the framework distinguishes them.
  3. Determine each spouse's income available for support from the same normalized statements, including distributions, perquisites, and cash flow retained in the business beyond reported salary.
  4. Trace separate property through the account statements step by step, classify commingled funds under the framework counsel identifies, and reduce pensions and deferred compensation to present value with the assumptions stated.

Attorney guides for divorce and marital dissolution cases

Other case types in North Carolina

Frequently asked: divorce and marital dissolution cases in North Carolina

Which North Carolina courts hear divorce and marital dissolution cases?

Divorce and Marital Dissolution cases venued in North Carolina are heard in the District Court (Smaller civil cases, misdemeanors, domestic relations, juvenile) and the Superior Court (General jurisdiction; larger civil cases, felonies). Final appeals run to the Supreme Court of North Carolina. Matters within federal jurisdiction proceed in the United States District Courts for the Eastern District of North Carolina, Middle District of North Carolina, and Western District of North Carolina.

How does North Carolina's family-law framework shape the financial analysis?

Whether North Carolina divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position. North Carolina courts apply a reliability inquiry to expert testimony: the trial judge asks whether the economist is qualified, whether the opinion rests on sufficient facts and reliable principles and methods, and whether those methods were reliably applied to the case. A damages report is written to that standard, with each input tied to the record and each data series named.

More questions about divorce and marital dissolution analysis

References

Request a consultation on divorce and marital dissolution cases in North Carolina or call (201) 343-0700. Plaintiff and defense counsel.