GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H D
HOUSE BILL DRH30351-CI-2
Short Title: Automatic Ord/Equitable Distribution Claim. (Public)
Sponsors: Representative Stevens.
Referred to:
*DRH30351 -CI-2*
A BILL TO BE ENTITLED 1
AN ACT TO REQUIRE AUTOMATIC ENTRY OF A N ORDER PROHIBITING SPOUSES 2
FROM WASTING, CONVERTING, OR SECRETING ASSETS UPON FILING A CLAIM 3
FOR EQUITABLE DISTRIBUTION. 4
The General Assembly of North Carolina enacts: 5
SECTION 1.1. Article 1 of Chapter 50 of the General Statutes is amended by adding 6
a new section to read: 7
"§ 50-23. Automatic order for equitable distribution claims. 8
(a) As used in this Article, "automatic order" is the standing order entered by the court to 9
prevent the waste, dissipation, or secreting of assets or increasing debt or other liabilities and 10
which is entered at the time an equitable distribution claim is filed in an action. The court must 11
enter the form order created by the Administrative Office of the Courts for the automatic order. 12
(b) The automatic order must contain the following provisions: 13
(1) Neither party shall sell, transfer, encumber, conceal, assign, remove, 14
withdraw, or in any way dispose of, without the consent of the other party in 15
writing, or by order of the court, any property, including real estate, personal 16
property, cash, accounts, stocks, mutual funds, bank accounts, loyalty points 17
or miles, cars, and boats whether individually or jointly titled, except in the 18
usual course of business, for customary and usual household expenses, or for 19
reasonable attorneys' fees in connection with any claim filed under this 20
Chapter. 21
(2) Neither party shall sell, transfer, encumber, assign, remove, withdraw, or in 22
any way dispose of any tax-deferred funds, stocks, or other assets held in any 23
individual retirement accounts, 401K accounts, profit sharing plans, Keogh 24
accounts, or any other pension or retirement account, and the parties shall 25
further refrain from applying for or requesting the payment of retirement 26
benefits or annuity payments of any kind, without the consent of the other 27
party in writing, or upon further order of the court; except that any party who 28
is already in pay status may continue to receive such payments thereunder. 29
(3) Neither party shall sell, transfer, encumber, assign, remove, withdraw, or in 30
any way dispose of any property owned by or for the benefit of the children, 31
including any 529 plan accounts, real estate, personal property, cash, accounts, 32
stocks, mutual funds, bank accounts, loyalty points or miles, and cars whether 33
individually or jointly titled, except for customary and usual expenses 34
historically paid for the benefit of the children from those assets without the 35
consent of the other party in writing or by order of the court. 36
H.B. 866
Apr 9, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRH30351-CI-2
(4) Neither party shall incur unreasonable debts hereafter, including further 1
borrowing against any credit line secured by the family residence, further 2
encumbering any assets, or unreasonably using credit cards or cash advances 3
against credit cards, except in the usual course of business or for customary 4
and usual household expenses, or for reasonable attorneys' fees in connection 5
with any claim filed under this Chapter. 6
(5) Neither party shall remove the other party as beneficiary, co-owner, cosigner, 7
or authorized user of any account in subdivisions (1) through (4) of this 8
subsection nor shall they add a nonparty to any account as a beneficiary, 9
co-owner, cosigner, or authorized user of any account in subdivisions (1) 10
through (4) of this subsection without the consent of the other party in writing, 11
or by order of the court. 12
(6) Neither party shall cause the other party or the children to be removed from 13
any existing medical, hospital, and dental insurance coverage, without the 14
consent of the other party in writing, or by order of the court. Each party shall 15
maintain the existing medical, hospital, and dental insurance coverage in full 16
force and effect until the parties agree in writing or the court orders otherwise. 17
(7) Neither party shall change the beneficiaries of any existing life insurance 18
policy without the consent of the other party in writing, or by order of the 19
court. Each party shall maintain the existing life insurance, automobile 20
insurance, homeowner's insurance, and renter's insurance in full force and 21
effect until the parties agree in writing or the court orders otherwise. 22
(8) This order is entered without prejudice to either party. 23
(c) The plaintiff shall serve the automatic order with the summons and complaint when 24
there is a newly filed equitable distribution claim as required by Rule 4 of the North Carolina 25
Rules of Civil Procedure. If the equitable distribution claim is filed in an existing action, the 26
automatic order shall be served in a manner provided for in Rule 5 of the North Carolina Rules 27
of Civil Procedure for service and return of process. 28
(d) The automatic order shall be immediately binding upon the party who filed the initial 29
equitable distribution claim and upon the other party once served with the automatic order. 30
(e) The automatic order shall remain in full force and effect until a final order is entered 31
regarding the equitable distribution claim, unless terminated, modified, or amended by the court 32
upon motion of either party or upon entry of a consent order by the parties. 33
(f) Entry of the automatic order shall not limit or restrict other remedies or protections 34
available to the parties." 35
SECTION 1.2. The Administrative Office of the Courts shall develop a form order 36
for the automatic order which must contain the following information: 37
(1) The case caption. 38
(2) A finding of fact that a claim for equitable distribution claim has been filed in 39
the action. 40
(3) A decretal section containing the required provisions listed in G.S. 50-23(b), 41
as enacted by this act. 42
The Administrative Office of the Courts shall have this form order finalized and 43
available on its website for use by October 1, 2025. 44
SECTION 1.3. Sections 1.2 and 1.3 of this act are effective when they become law. 45
SECTION 2. G.S. 50-20(c) reads as rewritten: 46
"(c) There shall be an equal division by using net value of marital property and net value 47
of divisible property unless the court determines that an equal division is not equitable. If the 48
court determines that an equal division is not equitable, the court shall divide the marital property 49
and divisible property equitably. The court shall consider all of the following factors under this 50
subsection: 51 General Assembly Of North Carolina Session 2025
DRH30351-CI-2 Page 3
(1) The income, property, and liabilities of each party at the time the division of 1
property is to become effective. 2
(2) Any obligation for support arising out of a prior marriage. 3
(3) The duration of the marriage and the age and physical and mental health of 4
both parties. 5
(4) The need of a parent with custody of a child or children of the marriage to 6
occupy or own the marital residence and to use or own its household effects. 7
(5) The expectation of pension, retirement, or other deferred compensation rights 8
that are not marital property. 9
(6) Any equitable claim to, interest in, or direct or indirect contribution made to 10
the acquisition of such marital property by the party not having title, including 11
joint efforts or expenditures and contributions and services, or lack thereof, as 12
a spouse, parent, wage earner or homemaker. 13
(7) Any direct or indirect contribution made by one spouse to help educate or 14
develop the career potential of the other spouse. 15
(8) Any direct contribution to an increase in value of separate property which 16
occurs during the course of the marriage. 17
(9) The liquid or nonliquid character of all marital property and divisible property. 18
(10) The difficulty of evaluating any component asset or any interest in a business, 19
corporation or profession, and the economic desirability of retaining such 20
asset or interest, intact and free from any claim or interference by the other 21
party. 22
(11) The tax consequences to each party, including those federal and State tax 23
consequences that would have been incurred if the marital and divisible 24
property had been sold or liquidated on the date of valuation. The trial court 25
may, however, in its discretion, consider whether or when such tax 26
consequences are reasonably likely to occur in determining the equitable value 27
deemed appropriate for this factor. 28
(11a) Acts of either party to maintain, preserve, develop, or expand; or to waste, 29
neglect, devalue or convert the marital property or divisible property, or both, 30
during the period after separation of the parties and before the time of 31
distribution. 32
(11b) In the event of the death of either party prior to the entry of any order for the 33
distribution of property made pursuant to this subsection: 34
a. Property passing to the surviving spouse by will or through intestacy 35
due to the death of a spouse. 36
b. Property held as tenants by the entirety or as joint tenants with rights 37
of survivorship passing to the surviving spouse due to the death of a 38
spouse. 39
c. Property passing to the surviving spouse from life insurance, 40
individual retirement accounts, pension or profit-sharing plans, any 41
private or governmental retirement plan or annuity of which the 42
decedent controlled the designation of beneficiary (excluding any 43
benefits under the federal social security system), or any other 44
retirement accounts or contracts, due to the death of a spouse. 45
d. The surviving spouse's right to claim an "elective share" pursuant to 46
G.S. 30-3.1 through G.S. 30-33, unless otherwise waived. 47
(11c) Whether a party was held in contempt of court for violation of the automatic 48
order entered pursuant to G.S. 50-23. 49
(12) Any other factor which the court finds to be just and proper." 50
SECTION 3. G.S. 50-21 reads as rewritten: 51 General Assembly Of North Carolina Session 2025
Page 4 DRH30351-CI-2
"§ 50-21. Procedures in actions for equitable distribution of property; sanctions for 1
purposeful and prejudicial delay. 2
(a) At any time after a husband and wife begin to live separate and apart from each other, 3
a claim for equitable distribution may be filed and adjudicated, either as a separate civil action, 4
or together with any other action brought pursuant to Chapter 50 of the General Statutes, or as a 5
motion in the cause as provided by G.S. 50-11(e) or (f). Upon filing the initial claim for equitable 6
distribution as provided for in this section, the automatic order shall be entered and served as 7
provided for in G.S. 50-23. Within 90 days after service of a claim for equitable distribution, the 8
party who first asserts the claim shall prepare and serve upon the opposing party an equitable 9
distribution inventory affidavit listing all property claimed by the party to be marital property 10
and all property claimed by the party to be separate property, and the estimated date-of-separation 11
fair market value of each item of marital and separate property. Within 30 days after service of 12
the inventory affidavit, the party upon whom service is made shall prepare and serve an inventory 13
affidavit upon the other party. The inventory affidavits prepared and served pursuant to this 14
subsection shall be subject to amendment and shall not be binding at trial as to completeness or 15
value. The court may extend the time limits in this subsection for good cause shown. The 16
affidavits are subject to the requirements of G.S. 1A-1, Rule 11, and are deemed to be in the 17
nature of answers to interrogatories propounded to the parties. Any party failing to supply the 18
information required by this subsection in the affidavit is subject to G.S. 1A-1, Rules 26, 33, and 19
37. During the pendency of the action for equitable distribution, discovery may proceed, and the 20
court shall enter temporary additional orders as appropriate and necessary for the purpose of 21
preventing the disappearance, waste, or destruction of marital or separate property or to secure 22
the possession thereof. 23
Real or personal property located outside of North Carolina is subject to equitable distribution 24
in accordance with the provisions of G.S. 50-20, and the court may include in its order 25
appropriate provisions to ensure compliance with the order of equitable distribution. 26
…." 27
SECTION 4. Section 4 is effective when it becomes law. Except as otherwise 28
provided, this act becomes effective October 1, 2025, and applies to actions or claims filed on or 29
after that date. 30