Equitable Distribution
| Equitable Distribution | |
| Statute: | N.C.G.S. § 50-20 |
| Description | How property and debt are distributed between the spouses |
| Takeaway | Most of the time, most property/debt is divided 50/50, regardless of which spouse is on the title. |
Equitable Distribution means the fair distribution of property and debt between the spouses. In most cases, most property and debt of either spouse is divided 50/50, regardless of which spouse is on the title. However, there are many rules and exceptions. Courts determine equitable distribution in three stages: (1) Categorization (2) Value (3) Distribution.
When Can a Lawsuit be Filed
You can file a lawsuit for equitable distribution anytime after you and your spouse begin living in separate homes[1] so long as you file a lawsuit for it before the court signs a divorce decree.[2] Since you have to live in separate homes for at least one year before filing for a divorce decree,[3] this provides a minimum window of one year to file a lawsuit for equitable distribution. Your window may be much larger, if neither spouse files and completes a lawsuit for a divorce decree. There are some rare situations, where equitable distribution lawsuits can be filed after the divorce decree is signed, if the divorce decree was obtained using unusual or improper service of process.[2]
If the divorce decree is already signed and neither spouse has filed for equitable distribution, then each spouse now owns whatever property and debt is in their name. Additionally, each spouse owns a 50% interest in any property with both spouse's names.
Categorization
Property or debt can be characterized as "marital", "divisible", or "separate". Separate property is the only property that is not divided between the spouses.
Marital
Divisible
Separate
Value
Distribution
Citations
- ↑ §50-21(a). "At any time after a husband and wife begin to live separate and apart from each other"
- ↑ 2.0 2.1 § 50-11(e). "An absolute divorce obtained within this State shall destroy the right of a spouse to equitable distribution under G.S. 50-20 unless the right is asserted prior to judgment of absolute divorce..."
- ↑ § 50-6. "...if and when the husband and wife have lived separate and apart for one year..."