What Does It Mean for North Carolina to be an “Equitable Distribution” State?

North Carolina is considered an equitable distribution state when it comes to dividing assets during a divorce or legal separation. This means that the state will not always split marital assets down the middle—instead, opting to consider factors that create a more equitable and fair distribution.

Understanding how this process works is critical, especially for families in Charlotte and surrounding areas. A court’s determination of fairness is not random but rather guided by specific factors that play a significant role in deciding how assets should be distributed.

What Does Equitable Distribution Mean?

Ultimately, the courts lean toward a 50/50 split as a default judgment in North Carolina, but one or both parties are able to push for changes to the default judgment that favor the party who has a wider need, contributed more, or is favored by the factors we’ll dive into below.

The Cornell School of Law defines equitable distribution as “a principle in divorce law governing the allocation of marital property between spouses. In states that use equitable distribution, courts try to achieve a fair allocation of property based on a list of factors or guidelines set forth by state law. Equitable distribution of marital property is distinct from an equal (i.e., 50-50) division of marital property, which is generally used in community property states.”

What Factors Impact Asset Distribution in North Carolina Divorces?

Several key factors influence the court’s decision when distributing assets during a divorce in North Carolina. While the court aims to ensure fairness, that fairness can look different based on the details of the marriage. Here are some of the main factors the court considers:

  • Income, property, and liabilities
  • Child or spousal support from previous marriages
  • Duration of the marriage
  • Age and physical and mental health
  • Needs of a parent taking custody of a child or children (if applicable)
  • Expectation of deferred compensation rights (pension, retirement, etc.)
  • Any equitable claim to, interest in, or direct or indirect contribution made to the acquisition of marital property even without being named on a title
  • Contributions made to assist in the education and professional development of the other party
  • Any direct contribution to the increase in value of separate property during the marriage
  • Tax consequences
  • Any acts to intentionally develop or devalue property after the separation but before distribution

In addition to these factors, North Carolina courts retain the discretion to consider any other details they deem relevant to ensuring a fair outcome.

Get the Most Out of Your Divorce

Having a dedicated North Carolina family law attorney by your side during a divorce significantly improves your chances of securing a favorable outcome. An attorney understands the equitable distribution laws and can argue persuasively for an asset division that aligns with your needs and goals.

If you’re considering a divorce or need help navigating this difficult time, contact Meridian Law Office today. Our team is ready to guide you through the process with compassion and the support you deserve. Let’s talk about your options and start working toward the best possible outcome for you and your family.

The following two tabs change content below.

Meridian Law Office

Meridian Law Office Serves Charlotte North Carolina and Surrounding Counties. Our Mission is to serve our clients with compassion, respect, and understanding, creating a safe and nurturing environment where they can confidently navigate complex legal matters alongside a dedicated and trusted partner. We ensure their voices are heard and their rights are protected every step of the way.

Latest posts by Meridian Law Office (see all)