What is Separate Property?

Separate Property in North Carolina is all real and personal property acquired by either husband or wife before marriage or acquired by a spouse by bequest, devise, descent, or gift during the course of the marriage. However, property acquired by gift from the other spouse during the course of marriage shall be considered separate property only if such an intention is state in the conveyance.

Additionally, property acquired in exchange for separate property remains to be separate property regardless of whether or not title remains in the name of that spouse or title is transferred to both spouses, unless there exists an express intention during the conveyance of the separate property to change its identity from separate to marital property. When separate property increases in value, the increase in value is to also be considered separate property.

All professional licenses and business licenses such as a law degree, medical license, or engineering license that terminates in the event that it is transferred is considered separate property.