FAQs
Equitable Distribution FAQs
What is "equitable distribution"?
How is property divided in North Carolina?
What property is subject to equitable distribution?
Is my business or professional practice subject to
equitable distribution?
Does equitable distribution mean that all marital
property is divided evenly?
What is "equitable distribution"?
Equitable distribution is a method for dividing the marital property (both
assets and debts) in a manner that is fair and equitable for all parties.
How is property divided in North Carolina?
All property is considered marital property unless proven to be separate
property. Separate property falls into three categories in North Carolina:
property owned by one spouse prior to the date of marriage, property
inherited, and property acquired by gift from someone other than the other
spouse. The division of the marital property is that which is just and right
in accordance with the court’s ruling. Generally, you are looking at a 50/50
split, absent some circumstance that indicates otherwise. Twelve different
factors apply when assets and debts are distributed, including, but not
limited to: the unequal earning power of the parties, the expectation of
non-vested pension or retirement benefits, contributions made by one spouse
to the education or career development of the other, the need of a parent
with custody of a child or children of the marriage to occupy the marital
residence and use or own its household effects, et al.
What property is subject to equitable distribution?
All property acquired by either party or both parties during the marriage,
but before the execution of a separation agreement, and/or before the
commencement of a matrimonial action, regardless of the form in which title
is held is subject to equitable distribution.
It does not include property provided for in a written agreement. It does
not include "separate property", which is defined as property acquired
before marriage; property acquired by bequest, devise, descent or gift from
a party other than the spouse; compensation for personal injuries; property
acquired in exchange for or the increase in value of separate property;
property described as separate property pursuant to written agreement of the
parties. However, the increase in value of separate property (or property
acquired in exchange for separate property) is marital property to the
extent that the appreciation is due in part to the direct or indirect
contributions or efforts of the other spouse.
Is my business or professional practice subject to equitable
distribution?
Yes. Businesses, professional practices, and enhanced earning capacity
attributable to the attainment of a career, professional license,
educational degree, profession, or license may be considered "property"
subject to equitable distribution.
Does equitable distribution mean that all marital property is divided
evenly?
No. Equitable does not mean equal. Marital property must be distributed
“equitably” between the parties, considering the circumstances of the case
and of the respective parties. There is, however, a presumption in North
Carolina that equal is equitable, but economic factors may result in an
unequal division.
For more information on Equitable Distribution, please see our Equitable Distribution page.
For additional questions, contact Tash & Kurtz, PLLC.
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