North Carolina Divorce Property Division

What the Law Says

North Carolina courts divide marital property under an equitable distribution standard — the judge decides what's fair, which may or may not be 50/50. In North Carolina, an equal division is the statutory starting point, adjustable under the factors below.

North Carolina starts from equality: N.C.G.S. §50-20(c) commands “an equal division by using net value of marital property and net value of divisible property” unless the court determines an equal division is not equitable, and lists roughly thirteen deviation factors — income, property, and liabilities; prior-marriage support obligations; the duration of the marriage and the age and health of the parties; a custodial parent's need for the marital residence; non-marital pension expectations; contributions to acquisition including homemaking; contributions to the other spouse's education; contributions to the increase in value of separate property; the liquid or nonliquid character of the property; the difficulty of valuing business interests; tax consequences; acts to maintain, preserve, or waste assets after separation; and any other just and proper factor. North Carolina also has a distinct “divisible property” category capturing post-separation changes in value.

Division Factors (N.C. Gen. Stat. §50-20)

What North Carolina courts weigh:

1. Income, property, and liabilities of each party at the time the division of property is to become effective (§50-20(c)(1))
2. Any obligation for support arising out of a prior marriage (§50-20(c)(2))
3. Duration of the marriage and the age and physical and mental health of both parties (§50-20(c)(3))
4. Need of a parent with custody of a child of the marriage to occupy or own the marital residence and household effects (§50-20(c)(4))
5. Expectation of pension, retirement, or other deferred compensation rights that are not marital property (§50-20(c)(5))
6. Any equitable claim to, interest in, or direct or indirect contribution made to the acquisition of the marital property, including joint efforts or expenditures and contributions as spouse, parent, wage earner, or homemaker (§50-20(c)(6))
7. Any direct or indirect contribution made to help educate or develop the career potential of the other spouse (§50-20(c)(7))
8. Any direct contribution to an increase in value of separate property during the marriage (§50-20(c)(8))
9. Liquid or nonliquid character of all marital and divisible property (§50-20(c)(9))
10. Difficulty of evaluating any component asset or any interest in a business, corporation, or profession, and the economic desirability of retaining such asset or interest intact and free from claim or interference by the other party (§50-20(c)(10))
11. Tax consequences to each party (§50-20(c)(11))
12. Acts of either party to maintain, preserve, develop, or expand — or to waste, neglect, devalue, or convert — the marital or divisible property during the period after separation and before distribution (§50-20(c)(11a))
13. Any other factor the court finds to be just and proper (§50-20(c)(12))

Common Questions