What is the difference between marital and separate property?

Property classification is a key factor in equitable distribution in North Carolina.  To determine whether an asset is classified as marital or separate, you must look at how the property was earned or acquired.  Separate property is property acquired before the marriage or from the labor of either spouse after the parties separated.  If the property was acquired during the marriage it is presumed to be marital, unless it was a gift or inheritance from one spouse’s family or was bought with separate property.