Equitable Distribution

In North Carolina, equitable distribution is the legal principle applied to divide marital property during a divorce. The goal is to ensure a fair distribution of assets and liabilities, not necessarily an equal division. Here's a breakdown of how equitable distribution works in North Carolina:

Classification of Property

Marital Property: This includes all property acquired by either spouse during the marriage, regardless of whose name is on the title. It encompasses assets such as real estate, retirement accounts, income, and personal property.

Separate Property: This includes property acquired by either spouse before the marriage, by inheritance, or by gift from a third party specifically to one spouse. Separate property is generally not subject to division in a divorce.

There is a third class of property known as divisible property, but a discussion on divisible property would exceed the scope of this page.

Steps in the Equitable Distribution Process

Identification: The first step is identifying all assets and debts. This requires creating a thorough inventory.

Classification: The second step is classifying all that property as marital, separate, or divisible.

Valuation: Each piece of marital property is then valued. This might involve appraisals for real estate, businesses, or other significant assets.

Distribution: The final step is distribution. The court will then determine how to distribute the marital property, and while the aim is fairness, equitable doesn’t mean a 50/50 split. Some factors considered before determining a fair distribution include:

• The duration of the marriage

• The age, physical health, and emotional health of both spouses

• The income and earning potential of each spouse

• The contribution of each spouse to the acquisition, preservation, or appreciation of marital property

• The needs of any minor children and the custodial parent’s need for housing

Equitable distribution in North Carolina aims to balance fairness with the complexity of individual marital circumstances, ensuring that each spouse receives a just share of the marital estate. If you need an attorney, please make an appointment for a free consult.