When a marriage ends, one of the most complex—and often contested—parts of the divorce process is the division of property. In North Carolina, this process is known as equitable distribution. It refers to the legal division of marital assets and debts between spouses, with the goal of reaching a division that is fair, though not always equal.
Many people assume “equitable” means a clean 50/50 split. In reality, the court considers a wide range of factors to determine what’s fair under the specific circumstances of each case. That might mean one spouse receives a larger share of certain assets, especially if they made significant contributions to the household or sacrificed career opportunities to support the family.
It’s Not Just About Numbers—It’s About Your Future
Dividing a life built together—homes, retirement accounts, businesses, investments, even debts—is never simple. The outcome of equitable distribution can directly impact your long-term financial security, your children’s future, and your ability to rebuild after divorce. That’s why it’s critical to have a lawyer who doesn’t just understand the law—but knows how to strategically advocate for what’s truly fair.
Meet Kara K. Goodman: Strategic, Fierce, Compassionate
At The Goodman Law Firm, founder Kara K. Goodman brings a unique blend of litigation experience and genuine compassion to every equitable distribution case. With deep roots in the Charlotte-Pineville area and a focused family law practice, Kara helps clients protect what they’ve worked hard for—without losing sight of what matters most.
She doesn’t take a cookie-cutter approach. Every client’s financial picture is different, and so is their definition of “fair.” Whether you're negotiating a division out of court or preparing for a trial, Kara is the steady legal ally you want in your corner—fierce when needed, practical always.
Why Choosing the Right Lawyer Matters
Property division is more than paperwork—it’s about protecting your future. Missteps, oversights, or poor representation can leave you with less than you deserve. With Kara’s help, you’ll have a clear understanding of your rights, the confidence to negotiate from strength, and a trusted advocate who’s as invested in your outcome as you are.
What Counts as Marital Property in North Carolina?
Marital Property vs. Separate Property
- Marital property includes most assets and debts acquired by either spouse during the marriage and before the date of separation. It doesn’t matter whose name is on the title—as long as it was acquired during the marriage, it’s typically subject to division.
- Separate property belongs to one spouse alone and usually includes:
- Property owned before the marriage
- Gifts or inheritances received individually (and kept separate)
- Certain personal injury settlements
It's important to note: property that starts as separate can become marital if it’s mixed or “commingled” with marital assets—like depositing an inheritance into a joint account or using premarital funds to renovate the family home.
Active vs. Passive Assets
North Carolina courts also distinguish between active and passive assets. Why does this matter?
- Active assets are those that grow or change in value due to one spouse’s efforts, such as managing a business or trading stock portfolios.
- Passive assets change in value due to outside forces, like real estate appreciation or market-driven investment growth.
This distinction can affect how property is valued and divided, especially in high-asset or complex divorces.
Common Marital Assets and Debts
Some of the most commonly disputed marital assets include:
- Homes and real estate, including vacation properties or rental income
- Retirement accounts, such as 401(k)s, pensions, and IRAs
- Vehicles, from family cars to recreational vehicles or boats
- Investment accounts and stocks
- Closely held businesses or professional practices
- Credit card debt, mortgages, and personal loans
All of these assets (and liabilities) must be properly identified and valued—before equitable distribution can begin.
Why Proper Valuation Matters
An unfair property settlement often stems from one simple issue: missing or misvalued assets. Without a clear picture of what exists and what it’s worth, you can’t advocate for what’s fair.
At The Goodman Law Firm, we work closely with financial experts, appraisers, and forensic accountants when needed to ensure nothing is overlooked. Whether you’re worried your spouse is hiding assets or you simply want peace of mind during your divorce, we make sure your financial future is built on solid ground.
The Process of Equitable Distribution in North Carolina
Identify All Property
Before anything can be divided, all assets and debts must be disclosed by both parties. This includes everything from homes and retirement accounts to credit cards and personal loans. Full and honest disclosure is legally required, and failure to do so can severely damage your credibility in court.
At The Goodman Law Firm, we ensure that your financial inventory is thorough and that nothing is overlooked—especially if there are concerns about hidden or undisclosed assets.
Classify the Property
Next, the court classifies each item as:
- Marital property – acquired during the marriage and subject to division
- Separate property – owned before the marriage or received as a gift/inheritance
- Divisible property – passive increases or decreases in value that occur after separation but before distribution
Proper classification is key, and it’s often one of the most hotly contested parts of a divorce case.
Value the Property
Each asset must then be assigned a fair market value, typically as of the date of separation. This may require formal appraisals for real estate, business valuations, or forensic accounting—especially in high-asset or complex cases.
We work with trusted financial professionals to ensure assets are valued accurately and fairly.
Distribute the Property Fairly
Finally, the court distributes marital property in a way that is equitable—which doesn’t always mean equal.
In some cases, a 50/50 split makes sense. But the court may decide that an unequal division is appropriate based on factors like:
- One spouse earning significantly more than the other
- One party staying home to raise children
- Marital debts disproportionately benefiting one spouse
- Age, health, and financial needs after divorce
Judges have wide discretion in this phase, so strong advocacy and persuasive presentation of your financial position are essential.
Out-of-Court Settlements vs. Court-Ordered Division
Not every property division ends in a courtroom. Many couples choose to resolve equitable distribution through mediation or negotiated settlement agreements, which gives you more control over the outcome and can reduce emotional and financial stress.
At The Goodman Law Firm, we help you explore every option—from efficient settlement to skilled litigation—always with your long-term financial stability in mind.
Factors That Influence Equitable Distribution
Key Factors Courts Consider
Income Disparity Between Spouses
When one spouse earns significantly more than the other, especially if that financial gap will continue post-divorce, the court may adjust the distribution to help balance future financial stability.
Duration of the Marriage
Longer marriages typically result in more entangled finances and contributions. Courts may consider the time one spouse spent out of the workforce raising children or managing the household as grounds for receiving a greater share of assets.
Contributions to the Marriage
This includes both financial and non-financial contributions. Running a business, maintaining the home, caring for children, or supporting a spouse’s career advancement all count. The court looks beyond income to assess each person’s role in building the marital estate.
Age and Health of Each Spouse
Older spouses or those facing health issues may be awarded a greater share of property to help ensure their needs are met after divorce.
Marital Misconduct (in Certain Cases)
While fault doesn’t typically affect property division, there are limited exceptions—such as economic misconduct or the dissipation of marital assets (e.g., gambling losses, hidden spending, or gifts to a third party during an affair).
Educational or Career Support
If one spouse made sacrifices—like working extra jobs or pausing their own career—to support the other through school, training, or career development, the court may consider this in deciding a fair distribution.
Every Case Is Different. Your Strategy Should Be Too.
No two families, marriages, or financial circumstances are exactly alike—which means there’s no formula for equitable distribution. What’s “fair” for one couple may not be fair for another.
At The Goodman Law Firm, we take the time to understand your full story. We listen closely, gather strong evidence, and build a strategy designed to protect what you’ve earned and what you deserve. Whether that means negotiating a tailored settlement or advocating in court, we fight for what’s fair—for you.
Protect What You’ve Worked For
Divorce may bring an end to your marriage, but it shouldn’t dismantle your financial future. The property and assets you’ve built—your home, your retirement, your investments—matter. And how those things are divided matters just as much.
With the right legal guidance, equitable distribution doesn’t have to be overwhelming or unfair. At The Goodman Law Firm, we help clients approach property division with clarity, strategy, and confidence. You’ll never be left guessing where you stand or what comes next.
Whether you’re facing a high-asset divorce, concerned about hidden assets, or just want to make sure you’re not being taken advantage of, you don’t have to figure it out alone. Kara K. Goodman is here to help.
Contact The Goodman Law Firm, PLLC Today
📍 10020 Monroe Road, Suite 170-288, Matthews, NC 28105
📞 (704) 502-6773
🕘 Monday – Friday | 9:00 a.m. – 5:00 p.m.
📧 kg@goodmanlawnc.com
🌐 www.goodmanlawnc.com
We’re Here When You Need Us
Family law challenges can feel overwhelming, but you don’t have to face them alone. Let’s talk. Reach out today, and let’s take the next step together.

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