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In North Carolina equitable distribution is the legal process of dividing property and debt acquired during a marriage. Equitable distribution, also known as "equitable division" or "division of property", the process takes into consideration a variety of factors when dividing assets and debts, including how long the parties were married, their needs, and the financial contribution each party made during the marriage.

Q. When should I make a claim for equitable distribution of marital assets?

A. At any time after separation but before an absolute divorce, a husband and wife may file a claim for equitable distribution.

Q. What is the Equitable Distribution process in North Carolina?

A. First, property is identified, next the property is valued as of the date of separation, and finally the property is distributed.

Q. What is considered marital property?

A. "Marital property" means all real and personal property acquired by either spouse or both spouses during the course of the marriage and before the date of the separation of the parties, and presently owned.

Q. What is considered separate property?

A. "Separate property" means all real and personal property acquired by a spouse before marriage or acquired by a spouse by bequest, devise, descent, or gift during the course of the marriage. However, property acquired by gift from the other spouse during the course of the marriage is considered separate property only if the intention is stated in the conveyance. Property acquired in exchange for separate property remains separate property regardless of whether the title is in the name of the husband or wife or both and shall not be considered to be marital property unless a contrary intention is expressly stated in the conveyance. The increase in value of separate property and the income derived from separate property is considered separate property. All professional licenses and business licenses, which would terminate on transfer is be considered separate property.

Q. Is the division of property equal?

 A. There is an equal division of marital property unless the court determines that an equal division is not equitable. If the court determines that an equal division is not equitable, the court will consider several factors to divide the marital property equitably.

Q. What factors are considered in an unequal distribution of property?

A. The Court considers twelve factors to determine distribution of property:

1. The financial state of the parties at the time of distribution
2. Any prior marriage support obligations
3. The duration of the marriage and the age and physical and mental health of both parties
4. The need of a parent to occupy the marital residence and use the household effects for the care of the children of the marriage
5. Any pension, retirement, or other deferred compensation rights that are not marital property
6. Any contribution made to the acquisition of marital property by the party not having title
7. The contribution made by one spouse to help educate or develop the career potential of the other spouse
8. Any direct contribution to increase the value of separate property, which occurs during the course of the marriage
9. The ability to liquidate the marital property
10. The difficulty of evaluating an interest in a business and the economic desirability of retaining that interest
11. The tax consequences to each party
12. Any other factor that the court finds to be just and proper

 Q. Does equitable distribution include assets and debts?

A. In North Carolina, property includes both assets and debts acquired during the marriage, and owned on the date of separation.