When a marriage ends, dividing up what you’ve built together can be one of the most emotional—and confusing—parts of the process. In North Carolina, the legal term for dividing property during divorce is equitable distribution.
But here’s the key: equitable doesn’t always mean equal.
Let’s break it down.
What Is Equitable Distribution?
Equitable distribution is the process the court uses to divide a couple’s marital property and debt when they divorce. This includes assets and debts acquired during the marriage, regardless of whose name is on them.
North Carolina law presumes that dividing everything 50/50 is equitable—but the court can decide otherwise if a different split would be more equitable based on certain circumstances.
Marital Property vs. Separate Property
Before anything can be divided, the court has to figure out what is “marital” and what isn’t. Property is classified into three categories:
- Marital Property – Property acquired by either spouse during the marriage and prior to the date of separation, like a home, retirement accounts, household furnishings, and income.
- Marital Debt – Debt acquired by either spouse during the marriage and prior to the date of separation, and that was incurred for the joint benefit of the parties or for the benefit of the marriage.
- Separate Property – Property acquired before the marriage and/or after the date of separation, or property acquired during the marriage by one spouse by inheritance or gift, and kept separate.
- Separate Debt – Debt that is not marital.
- Divisible Property – Passive changes in value or income from marital assets that occurs between separation and the date of distribution.
Only marital and divisible property and debt are subject to equitable distribution. The court does not have authority to distribute separate property in equitable distribution.
How Does the Court Decide What’s Equitable?
The court considers a variety of factors to determine whether a 50/50 split is truly fair. These include:
- Length of the marriage
- Income, property, and debts of each spouse
- Contributions as a homemaker or caregiver
- Efforts that increased the value of an asset
- Tax consequences
- Financial misconduct
- Any many more
- It’s not about punishing anyone—it’s about recognizing each person’s contributions and needs.
Can We Decide This Without Going to Court?
Yes—and you should. You can work out your own equitable distribution agreement through negotiation, mediation, and with the help of attorneys. Your agreement will need to meet certain formalities, and, so long as it does, the court will honor it.
Going to court should be a last resort when you can’t agree.
Why Legal Guidance Matters
Dividing property equitably isn’t just about what feels right—it’s about understanding what the law says, what your rights are, and the long-term consequences.
An experienced family law attorney can help you:
- Identify what is marital vs. separate
- Protect assets you brought into the marriage
- Negotiate or litigate a fair division
- Avoid costly mistakes or surprises
Need help with equitable distribution?
We’re here to help you protect what matters most and move forward with confidence.