EQUITABLE DISTRIBUTION

Equitable distribution is the legal process of dividing marital property and debts between spouses during a divorce. In North Carolina, the division is based on fairness, not necessarily equality.

Property Categories

• Marital Property: Assets and debts acquired during the marriage, except gifts or inheritances given to one spouse alone.
• Separate Property: Assets and debts owned before the marriage or acquired individually during the marriage through gifts or inheritance.
• Divisible Property: Property that changes in value after separation but before the divorce is finalized (e.g., investment growth).

Steps in Equitable Distribution

• Identification of Property: Both spouses disclose all assets and debts.
• Classification: The Court determines which assets are marital, separate, or divisible property.
• Valuation: Assets and debts are assigned a monetary value, often using appraisals or financial records.
• Distribution: The Court divides marital property and debts in a way that is fair, considering various factors.

Factors Considered in Distribution

• The length of the marriage.
• Each spouse’s income, property, and debts.
• Contributions to the marriage, including homemaking and child-rearing.
• Any wasteful spending or misconduct affecting marital assets.
• The needs of each spouse, including health or age considerations.

Special Considerations

• Retirement Accounts: Pensions and 401(k)s earned during the marriage are considered marital property and can be divided.
• Family Home: The court may award the home to one spouse, especially if children are involved, or order its sale.
• Business Ownership: If one spouse owns a business, its value may be divided, but the business itself can remain operational under one spouse.

Settlement vs. Court Decision. Couples can agree on property division through negotiation or mediation. If they cannot agree, the court decides.

Key Points to Remember

• Marital misconduct does not affect property division but may influence alimony.
• Hidden assets can result in penalties or a larger share awarded to the other spouse.
• Equitable distribution begins after legal separation, and timing can affect divisible property values.

Legal Representation. Equitable distribution is among the most complicated operations in Family Court. Hiring an attorney is not required but is highly recommended to ensure your rights and interests are protected throughout the process. Currently, deLambert Stone handles equitable distribution in Lee, Harnett, Chatham, and Moore Counties. There is no "standard rate" in these cases. Each matter is different, and we generally bill them at an hourly rate. We will do our best to explain all of the possible scenarios and the potential cost of each, and then work out a good faith estimate, with suitable terms.

If you have questions, please call our office at 984-977-8390 or reach out through the Contact Us link to set up a consultation.