right to full financial disclosure and a fair division of marital propert

As the leaves start to change and the year winds down, many families naturally shift into planning mode—prepping for the holidays, reviewing budgets, and setting goals for the new year. But if you're in the middle of a divorce, fall is also a critical time to think carefully about your financial future, particularly when it comes to how your assets will be divided.

At The Goodman Law Firm, we know that financial clarity brings peace of mind. And in divorce, few things matter more. Whether you’re concerned about keeping the house, dividing retirement accounts, or protecting business interests, now is the time to lay the groundwork for smart, informed decisions.

Many people assume that when you divorce, everything just gets divided 50/50. But here in North Carolina, the law doesn’t always work that way. Our state follows something called equitable distribution—which means “fair” doesn’t always mean “equal.”

Whether you’re dealing with real estate, investments, debts, or long-term retirement plans, equitable distribution requires careful evaluation of what you own, what it's worth, and what a fair split actually looks like. And unless you and your spouse can reach a private agreement, a judge may be the one deciding who gets what.

What Is Equitable Distribution?

Equitable Doesn’t Always Mean Equal

Unlike community property states that split everything 50/50, North Carolina uses an equitable distribution model. That means assets are divided fairly—but not necessarily equally.

In some cases, a 50/50 division may be appropriate. But in others, the court may determine that one spouse should receive a larger share based on a variety of factors, like income disparity, contributions to the marriage, or child custody arrangements.

This is why preparation—and legal guidance—matters so much.

Marital Property vs. Separate Property

Before anything can be divided, the court (or the parties) must classify which assets are marital and which are separate:

• Marital Property: These are assets acquired during the marriage, regardless of whose name is on the title. This typically includes:
  
  • The marital home
  • Bank accounts
  • Vehicles
  • Retirement accounts and pensions
  • Business interests
  • Income earned during the marriage
• Separate Property: These are assets not subject to division and generally include:
  
  • Property owned before the marriage
  • Inheritances or gifts given specifically to one spouse
  • Certain personal injury awards

Keep in mind: even separate property can become “marital” if it’s mixed with joint assets or used to benefit the marriage (a process called commingling).

When Equitable Distribution Applies

Equitable distribution comes into play when spouses can’t agree on how to divide their assets. If no private settlement is reached, the court will step in, review the marital estate, and determine a division that meets North Carolina’s standard of fairness.

But even if you're working toward a settlement outside of court, the equitable distribution guidelines still serve as a framework—and understanding them gives you a clearer picture of what to expect.

Common High-Value Assets in Divorce

Some assets are easy to split—a checking account, a few pieces of furniture—but others? Not so much. When it comes to equitable distribution, high-value assets like homes, retirement plans, and business interests require extra care, detailed documentation, and often, professional valuation.

Here’s what you need to know about the most common big-ticket items in a North Carolina divorce:

Real Estate

Marital real estate is often one of the most emotionally and financially significant assets in a divorce. Whether it’s the family home, a vacation property, or a rental investment, North Carolina courts will treat these as marital property if acquired during the marriage.

Your options typically include:

• Selling the property and splitting the proceeds
• One spouse buying out the other’s share
• Co-ownership, where both parties maintain interest in the property post-divorce (less common and often temporary)

It’s critical to understand the fair market value of the property and any equity built during the marriage. If children are involved, the court may also consider the best interests of the child when determining who stays in the home.

Retirement Accounts

Retirement funds and pensions are subject to equitable distribution—even if only one spouse’s name is on the account. This includes:

• 401(k)s
• IRAs
• Employer-sponsored pensions
• Military or government retirement plans

To divide these accounts properly, especially those with tax implications or long-term payout structures, you may need a Qualified Domestic Relations Order (QDRO). This court order ensures that a retirement plan administrator can legally divide the funds without penalties.

Timing matters, and early fall is a great time to gather year-to-date statements, account histories, and employer-plan details.

Business Ownership

If you or your spouse owns a business, that ownership interest may be partially or fully classified as marital property, depending on when it was formed and how it was managed.

Key considerations include:

• Was the business started during the marriage?
• Did marital funds or efforts contribute to its growth?
• What is the current fair market value?

In some cases, the business may need a formal valuation, and one spouse may need to buy out the other’s interest. Keeping the business operational while negotiating division can be complicated, so having the right legal and financial team is crucial.

Debts and Liabilities

It’s not just assets that get divided—marital debt is also part of the equation.

This includes:

• Credit cards
• Mortgages
• Auto loans
• Medical bills
• Personal loans

North Carolina courts will aim to divide both assets and liabilities fairly, taking into account who incurred the debt, how it was used, and who is in a better position to repay it. Be cautious: even if the court assigns a debt to your spouse, lenders may still come after you if your name is on the account. A clear strategy is essential.

What Judges Consider When Dividing Property

When spouses can’t reach a private agreement on how to divide their assets, a North Carolina judge will step in to make those decisions under the state’s equitable distribution laws. But remember—equitable doesn’t always mean equal.

Instead, the court looks at a variety of factors to determine what is fair given the couple’s unique circumstances. Here's what judges take into account:

Duration of the Marriage

The length of your marriage can impact how assets are divided. Generally, longer marriages may justify a more even split, especially if one spouse sacrificed income or career growth to support the family or household.

Income and Earning Capacity of Each Spouse

If one spouse earns significantly more—or has greater potential to earn in the future—the court may adjust the division of property to account for that imbalance. Judges want to avoid putting either spouse at a severe financial disadvantage after divorce, especially if they supported the household in non-financial ways.

Contributions to the Marriage (Financial and Non-Financial)

This includes:

• Direct financial contributions (income, paying down debt, buying property)
• Non-financial contributions (raising children, homemaking, supporting a spouse through school or business growth)

Courts recognize that marriage is a partnership—and that not all contributions are tied to a paycheck.

Custody Arrangements

If one parent is awarded primary physical custody, especially when young children are involved, they may be allowed to remain in the marital home for stability. This doesn’t mean they own the home outright—but it may influence how and when property is divided.

Waste or Concealment of Assets

If a spouse has wasted marital assets (for example, through gambling, extravagant spending, or funneling money to a new partner), or attempted to hide property, the court can adjust the distribution in favor of the other spouse. Full disclosure and transparency are expected during equitable distribution.

Prior Agreements (Prenups & Postnups)

If the couple has a valid prenuptial or postnuptial agreement, the court will generally uphold those terms—assuming the agreement is fair, properly executed, and not made under duress.

Fair Doesn’t Always Mean 50/50

Equitable distribution in North Carolina isn’t just a matter of simple math. It’s about fairness—looking at the full picture of your marriage, your contributions, your financial future, and your family’s needs.

High-value assets like real estate, retirement accounts, and business interests demand careful planning and the right legal insight. Whether you’re already separated or just beginning to prepare for divorce, taking proactive steps this fall can put you in the best position possible.

Need Help Untangling Your Finances During Divorce?

At The Goodman Law Firm, PLLC, we help families across North Carolina navigate the equitable distribution process with clarity, compassion, and confidence.

Whether you're dealing with a complex financial portfolio or simply want to make sure you’re treated fairly, we’re here to help you move forward—with a strategy that protects what matters most.

📞 Call us today at (704) 502-6773 📍 10020 Monroe Road, Suite 170-288, Matthews, NC 28105
📩 kg@goodmanlawnc.com 🌐 www.goodmanlawnc.com

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