Equitable Distribution Lawyer Matthews NC

When a marriage ends, one of the most important — and often most emotional — aspects to navigate is how property and assets will be divided. In North Carolina, this process is known as equitable distribution, and while it aims to be fair, that doesn’t always mean equal.

What Is Equitable Distribution in North Carolina?

Equitable distribution in North Carolina is governed by N.C. Gen. Stat. § 50-20, which lays out how courts divide assets and debts during a divorce. This process is intended to ensure a fair division — but “fair” doesn’t always look like a 50/50 split. Instead, the court evaluates a wide range of factors to determine what’s equitable based on the unique circumstances of each marriage.

Marital vs. Separate Property

The first step in any equitable distribution case is classifying property. North Carolina law separates assets and debts into three categories:

• Marital Property: Anything acquired by either spouse during the marriage up until the date of separation — this includes income, real estate, vehicles, retirement accounts, and even debt.
• Separate Property: Property owned by one spouse before the marriage, or assets acquired individually through inheritance or gift. These are generally not subject to division unless they’ve been commingled or converted into marital assets.
• Divisible Property: Certain changes in value or assets received after the date of separation but before distribution — such as interest income or fluctuations in investment value — can also be divided.

Active vs. Passive Appreciation

Even when an asset is considered separate property, it may still be subject to division if its value increased during the marriage due to active efforts by either spouse. This is known as active appreciation, and it can include:

• A business that one spouse owned before marriage but grew substantially during the marriage due to shared efforts
• Real estate that was improved or managed by either party during the marriage

By contrast, passive appreciation — such as rising real estate values due to market trends — typically remains separate.

Common Examples of Property Divided in North Carolina Divorces

At The Goodman Law Firm, we routinely help clients sort through and equitably divide:

• Family homes and rental properties
• Retirement accounts (401(k), pensions, IRAs)
• Bank accounts and investment portfolios
• Vehicles, boats, and recreational assets
• Family-owned businesses or professional practices
• Credit card debt, student loans, and mortgages
• Personal property, including furniture, art, and heirlooms

Every item has a value — and every case has a story. We work to ensure that both are represented accurately and fairly.

When Does Equitable Distribution Apply in North Carolina?

Filing for Equitable Distribution With an Absolute Divorce

In North Carolina, you can file a claim for equitable distribution at the same time you file for absolute divorce — or even before. However, it’s critical that this claim is properly raised in your pleadings (your formal court filings). If it’s not, you risk losing your right to divide marital assets entirely.

Making a Claim During Separation or Divorce Proceedings

You don’t have to wait until your divorce is final to start addressing property division. Many clients work with The Goodman Law Firm during their separation period to begin negotiating equitable distribution through mediation or settlement — which often leads to faster, less costly outcomes.

You can file for equitable distribution as a standalone action after separation but before a divorce judgment is entered. This is especially common when the division of property is complex or when one spouse may be hiding or controlling key assets.

Don't Miss the Deadline — It’s Final

This is one of the most important things to know: if you finalize your divorce without asserting your right to equitable distribution, you may lose that right permanently.

North Carolina courts will not go back and divide property once an absolute divorce has been granted — unless an equitable distribution claim was properly filed before the divorce was finalized.

That’s why it’s so important to work with a skilled family law attorney early in the process. At The Goodman Law Firm, we ensure no detail — or deadline — is overlooked.

What Factors Do North Carolina Courts Consider in Equitable Distribution?

Equitable distribution in North Carolina isn’t simply a math problem — it’s a fact-driven, case-by-case evaluation. Courts are given discretion under N.C. Gen. Stat. § 50-20(c) to divide property in a way that’s fair, not necessarily equal. To do that, judges consider a variety of factors that reflect the financial and personal dynamics of the marriage.

Length of the Marriage

The duration of the marriage often plays a big role in how property is divided. Long-term marriages tend to involve more intermingled finances and shared investments — and courts often aim to leave both spouses in a relatively balanced financial position post-divorce.

Age, Health, Income, and Debts of Each Party

The court will weigh the financial condition of each spouse, including their earning capacity, existing debt, and overall health. If one party is nearing retirement or has significant medical concerns, that can factor into what distribution is deemed equitable.

Direct and Indirect Contributions to the Marriage

Courts recognize that both financial and non-financial contributions matter. If one spouse worked outside the home while the other raised children, supported the household, or helped build a family business, those efforts carry weight in the division process.

At The Goodman Law Firm, we ensure homemakers, stay-at-home parents, and spouses who made indirect contributions get the recognition and share they deserve.

Business Ownership, Retirement Plans, and Inheritances

Complex assets like privately-owned businesses, pensions, or investment portfolios require specialized attention. The court looks at:

• Whether the business is marital or separate
• If retirement benefits were earned during the marriage
• Whether an inheritance was kept separate or commingled

Our firm works closely with financial experts to properly classify, value, and protect these assets.

Marital Misconduct Affecting Finances

While North Carolina is a “no-fault” divorce state, marital misconduct that impacts the marital estate can influence equitable distribution. For example:

• One spouse wastes money on an affair or gambling
• There is intentional destruction or hiding of assets
• One party accrues significant debt without the other's knowledge

In cases like these, the court may award a disproportionate share of assets to the innocent spouse.

Common Challenges in Property Division

Equitable distribution isn’t always straightforward — especially when there’s emotional tension, financial complexity, or mistrust between spouses. At The Goodman Law Firm, we help clients in Matthews and throughout North Carolina navigate even the most difficult property division scenarios with clarity and confidence.

Here are some of the most common challenges we see:

Valuing Real Estate, Pensions, and Businesses

Properly assessing the value of major assets is often the cornerstone of a fair outcome. But it’s not always simple.

• Real estate may require an appraisal, especially in a fluctuating market.
• Retirement accounts and pensions need to be valued based on vesting schedules, tax consequences, and future payouts.
• Family-owned businesses involve even more nuance — including goodwill, income-generating potential, and whether any portion is separate property.

At The Goodman Law Firm, we work with trusted financial professionals and appraisers to ensure that every asset is accurately valued and accounted for.

Hidden Assets or Financial Deception

Unfortunately, some spouses attempt to manipulate the process by hiding money or undervaluing assets. Whether it’s a secret account, unreported income, or sudden debt, financial deception can derail an equitable resolution.

We know how to spot the red flags and have experience using discovery tools — including subpoenas and forensic accountants — to bring hidden information to light.

High-Conflict Divorces and Emotionally Charged Disputes

Even when the assets themselves aren’t complex, high emotions can complicate everything. We've worked with clients facing:

• Spouses who refuse to negotiate
• Power imbalances or intimidation
• Ongoing domestic conflict

The Goodman Law’s compassionate yet strategic approach helps clients stay focused, make informed decisions, and avoid being taken advantage of — even in the toughest situations.

Splitting Complex Assets

In today’s economy, marital estates often include non-traditional or emerging assets. These might include:

• Stock options or RSUs (restricted stock units)
• Cryptocurrency holdings
• Timeshares or vacation properties
• Intellectual property or royalties

These assets often fluctuate in value and come with specific legal and tax considerations. Our firm understands the intricacies and ensures your future isn’t compromised by overlooking the fine print.

Ready for a Fair Division of Property? Let’s Talk.

At The Goodman Law Firm, we know that property division isn’t just about numbers — it’s about your home, your retirement, your peace of mind, and your future.

If you’re separated or considering divorce in Matthews, NC, now is the time to speak with an equitable distribution attorney who will fight for what’s fair — and treat you with the dignity you deserve.

📞 Call us at (704) 502-6773 🖥️ Or book a consultation online at www.goodmanlawnc.com

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