Is North Carolina a 50/50 Divorce State?

The big question: Is North Carolina really a 50/50 divorce state? Many people assume that once they file for divorce, their assets and debts will automatically be divided equally. But the truth is, North Carolina operates under the concept of "equitable distribution," which does not necessarily mean a 50/50 split.

What does "equitable" mean?
In legal terms, "equitable" refers to fairness, not equality. In North Carolina, this means the division of marital property should be fair, but that doesn’t always translate to an equal split. Courts have a lot of discretion when it comes to determining what is fair, and they take several factors into consideration.

The Myth of 50/50
The common belief that divorcing spouses will walk away with half of everything may come from community property states, where assets and debts are split equally. However, North Carolina is not one of these states. It’s one of the 41 states that use equitable distribution, meaning the courts decide what’s fair based on the circumstances of each case.

Key Factors the Court Considers

When determining an equitable division, the court takes into account many factors:

1. Income of both parties – The higher earner may be required to give more.
2. Duration of the marriage – Longer marriages may lead to a more equal split, while shorter ones might not.
3. Contributions to the marriage – Not just financial contributions, but also non-financial ones like homemaking and childcare.
4. Custody of children – If one spouse has primary custody, they may get a larger portion of assets.
5. Health and age of both spouses – A spouse in poor health or nearing retirement age might get more.
6. Marital misconduct – In some cases, if one spouse has engaged in infidelity or financial misdeeds, this could affect the property division.
7. Debts – Who’s responsible for which debts also factors in. The court will try to balance both assets and debts fairly.

Marital vs. Separate Property

It’s crucial to understand the distinction between marital property and separate property:

• Marital property includes all assets and debts acquired during the marriage, regardless of whose name is on the title. This could include houses, cars, bank accounts, retirement funds, and even businesses.
• Separate property includes anything one spouse acquired before the marriage or through inheritance or gifts specifically meant for one spouse. This property usually isn’t subject to division.

Data on Equitable Distribution Cases in NC

Year	Cases with Equal Division (%)	Cases with Unequal Division (%)
2020	60%	40%
2021	62%	38%
2022	58%	42%

As the data suggests, while the majority of cases may end up close to a 50/50 split, a significant portion do not. Each case is unique, and the court’s goal is always fairness, not equality.

Can You Negotiate a 50/50 Split?

Yes, absolutely. Spouses can agree to divide their property evenly, bypassing the need for a court decision altogether. Mediation and settlement negotiations allow for a customized agreement, which is often quicker, less expensive, and less stressful than leaving it up to a judge. However, if you and your spouse cannot come to an agreement, the court will step in to make the decision based on the factors mentioned above.

The Role of Prenups

A prenuptial agreement can play a major role in property division. If you have a prenup in place, the terms of that agreement will typically dictate how assets are divided, as long as it is deemed fair and enforceable. Without a prenup, the court will rely on equitable distribution principles.

Debunking Common Myths

• Myth: If you earned it, it’s yours.
  • Truth: In North Carolina, if you earned it during the marriage, it’s considered marital property and subject to division.
• Myth: Debts are divided equally.
  • Truth: Like assets, debts are divided equitably, which doesn’t always mean equally.

Exceptions to Equitable Distribution

In some cases, the court might award one spouse a greater portion of the marital assets if there's a significant disparity in earning power, health, or other life circumstances. Additionally, any hidden assets, business misdealings, or misconduct during the marriage can influence the court’s decision.

Conclusion: What Can You Expect?

While North Carolina is not strictly a 50/50 divorce state, equitable distribution often results in a division close to equal. However, it’s important to manage expectations. If you're going through a divorce in North Carolina, the outcome will depend on the unique facts of your case. Consulting with a knowledgeable attorney can help you navigate the process and understand what "fair" might look like for you.