| 12 | 13 | | A BILL TO BE ENTITLED 1 |
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| 13 | 14 | | AN ACT TO PROVIDE FOR THE EFFECT THAT CONVEYANCES OF REAL PROPERTY 2 |
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| 14 | 15 | | BETWEEN SPOUSES HAVE ON CERTAIN MARITAL PROPERTY RIGHTS AND TO 3 |
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| 15 | 16 | | MAKE TECHNICAL CORRECTIONS, AS RECOMMENDED BY THE GENERAL 4 |
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| 16 | 17 | | STATUTES COMMISSION. 5 |
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| 17 | 18 | | The General Assembly of North Carolina enacts: 6 |
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| 18 | 19 | | SECTION 1.(a) G.S. 29-30 reads as rewritten: 7 |
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| 19 | 20 | | "§ 29-30. Election of surviving spouse to take life interest in lieu of intestate share provided. 8 |
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| 20 | 21 | | (a) Except as provided in this subsection, in lieu of the intestate share provided in 9 |
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| 21 | 22 | | G.S. 29-14 or G.S. 29-21, or of the elective share provided in G.S. 30-3.1, the surviving spouse 10 |
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| 22 | 23 | | of an intestate or the surviving spouse who has petitioned for an elective share is entitled to take 11 |
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| 23 | 24 | | as the surviving spouse's intestate share or elective share a life estate in one third in value of all 12 |
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| 24 | 25 | | the real estate of which the deceased spouse was seised and possessed of an estate of inheritance 13 |
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| 25 | 26 | | at any time during coverture. The surviving spouse is not entitled to take a life estate in any of 14 |
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| 26 | 27 | | the following circumstances: 15 |
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| 27 | 28 | | (1) The surviving spouse has waived the surviving spouse's rights by joining with 16 |
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| 28 | 29 | | the other spouse in a conveyance of the real estate. 17 |
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| 29 | 30 | | (1a) The surviving spouse has waived the right to take a life estate in lieu of an 18 |
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| 30 | 31 | | intestate or elective share by an express written waiver. 19 |
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| 31 | 32 | | (2) The surviving spouse has waived, released, or conveyed the surviving spouse's 20 |
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| 32 | 33 | | interest in the real estate in accordance with G.S. 52-10. 21 |
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| 33 | 34 | | (2a) The surviving spouse has conveyed the surviving spouse's interest in the real 22 |
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| 34 | 35 | | estate to the other spouse pursuant to G.S. 39-13.3 or G.S. 41-63(4) and has 23 |
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| 35 | 36 | | expressly waived or released the surviving spouse's right to take a life estate 24 |
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| 36 | 37 | | in the real estate in the instrument of conveyance. 25 |
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| 37 | 38 | | (3) The surviving spouse was not required by law to join in a conveyance of the 26 |
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| 38 | 39 | | real estate in order to bar the elective life estate. 27 |
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| 39 | 40 | | (3a) The surviving spouse has executed a written declaration permitting the 28 |
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| 40 | 41 | | deceased spouse to convey or encumber the real estate without the consent or 29 |
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| 41 | 42 | | joinder of the surviving spouse. 30 |
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| 42 | 43 | | (3b) The real estate in which the deceased spouse had an interest was either 31 |
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| 43 | 44 | | apportioned to or sold to another person in a partition proceeding initiated 32 |
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| 44 | 45 | | before the deceased spouse's death. 33 |
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| 45 | 46 | | (4) The surviving spouse is otherwise not legally entitled to the election provided 34 |
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| 48 | 53 | | (b) The surviving spouse may elect to take a life estate in the usual dwelling house 1 |
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| 49 | 54 | | occupied by the surviving spouse at the time of the death of the deceased spouse if the dwelling 2 |
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| 50 | 55 | | house was owned by the deceased spouse at the time of the deceased spouse's death, together 3 |
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| 51 | 56 | | with the outbuildings, improvements improvements, and easements thereunto belonging or 4 |
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| 52 | 57 | | appertaining, easements, and lands land upon which the dwelling house is situated and that is 5 |
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| 53 | 58 | | reasonably necessary to the its use and enjoyment thereof, as well as enjoyment. The surviving 6 |
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| 54 | 59 | | spouse may also elect to take a fee simple ownership in the household furnishings therein, despite 7 |
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| 55 | 60 | | the fact that a life estate therein in the dwelling house might exceed the fractional limitation 8 |
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| 56 | 61 | | provided for in subsection (a) of this section. If the value of a life estate in the dwelling house is 9 |
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| 57 | 62 | | less than the value of a life estate in one-third in value of all the real estate, the surviving spouse 10 |
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| 58 | 63 | | may elect to take a life estate in the dwelling and a life estate in such other real estate as to make 11 |
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| 59 | 64 | | the aggregate life estate of the surviving spouse equal to a life estate in one-third in value of all 12 |
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| 60 | 65 | | the real estate. 13 |
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| 61 | 66 | | (c) The election provided for in subsection (a) of this section shall be is made by the filing 14 |
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| 62 | 67 | | of a petition in accordance with Article 2 of Chapter 28A of the General Statutes (i) with the 15 |
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| 63 | 68 | | clerk of the superior court of the county in which the administration of the estate is pending or 16 |
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| 64 | 69 | | (ii) if no administration is pending, then with the clerk of the superior court of any county in 17 |
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| 65 | 70 | | which the administration of the estate could be commenced, together with the recording of a 18 |
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| 66 | 71 | | notice indicating the county and file number of the clerk's filing with the register of deeds in 19 |
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| 67 | 72 | | every county where real property to be claimed under the filing is located. The election shall be 20 |
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| 68 | 73 | | made prior to the following applicable periods: 21 |
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| 69 | 74 | | (1) In case of testacy, the shorter of (i) within 12 months of the date of death of 22 |
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| 70 | 75 | | the deceased spouse if letters testamentary are not issued within that period, 23 |
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| 71 | 76 | | or (ii) within one month after the expiration of the time limit for filing a claim 24 |
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| 72 | 77 | | for elective share if letters have been issued. 25 |
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| 73 | 78 | | (2) In case of intestacy, the shorter of (i) within 12 months after the date of death 26 |
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| 74 | 79 | | of the deceased spouse if letters of administration are not issued within that 27 |
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| 75 | 80 | | period, or (ii) within one month after the expiration of the time limit for filing 28 |
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| 76 | 81 | | claims against the estate, if letters have been issued. 29 |
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| 77 | 82 | | (3) Repealed by Session Laws 2011-344, s. 5, effective January 1, 2012. 30 |
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| 78 | 83 | | (4) If litigation that affects the share of the surviving spouse in the estate is 31 |
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| 79 | 84 | | pending, including a pending petition for determination of an elective share, 32 |
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| 80 | 85 | | then within such a reasonable time as may be allowed by written order of the 33 |
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| 81 | 86 | | clerk of the superior court. 34 |
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| 82 | 87 | | Nothing in this subsection extends the period of time for a surviving spouse to petition for an 35 |
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| 83 | 88 | | elective share under Article 1A of Chapter 30 of the General Statutes. 36 |
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| 84 | 89 | | (c1) The petition described in subsection (c) of this section shall do all of the following: 37 |
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| 85 | 90 | | (1) Be directed to the clerk with whom it is filed. 38 |
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| 86 | 91 | | (2) State that the surviving spouse making the petition elects to take under this 39 |
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| 87 | 92 | | section rather than under the provisions of G.S. 29-14, 29-21, or 30-3.1, as 40 |
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| 88 | 93 | | applicable. 41 |
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| 89 | 94 | | (3) Set forth the names of all heirs, devisees, personal representatives 42 |
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| 90 | 95 | | representatives, and all other persons in possession of or claiming an estate or 43 |
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| 91 | 96 | | an interest in the property described in subsection (a) of this section. 44 |
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| 92 | 97 | | (4) Request the allotment of the life estate provided for in subsection (a) of this 45 |
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| 93 | 98 | | section. 46 |
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| 94 | 99 | | (c2) The petition described in subsection (c) of this section may be filed in person, person 47 |
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| 95 | 100 | | or by attorney authorized in a writing executed and duly acknowledged by the surviving spouse 48 |
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| 96 | 101 | | and attested by at least one witness. If the surviving spouse is a minor or an incompetent, the 49 |
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| 97 | 102 | | petition may be executed and filed by a general guardian or by the guardian of the person or 50 |
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| 98 | 103 | | estate of the minor or incompetent spouse. If the minor or incompetent spouse has no guardian, 51 General Assembly Of North Carolina Session 2025 |
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| 100 | 105 | | the petition may be executed and filed by a guardian ad litem appointed by the clerk. The petition, 1 |
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| 101 | 106 | | whether in person or by attorney, shall be filed as a record of the court, and a summons together 2 |
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| 102 | 107 | | with a copy of the petition shall be served upon each of the interested persons named in the 3 |
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| 103 | 108 | | petition, in accordance with G.S. 1A-1, Rule 4. 4 |
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| 104 | 109 | | (d) In case of election to take a life estate in lieu of an intestate share or elective share, as 5 |
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| 105 | 110 | | provided in either G.S. 29-14, 29-21, or 30-3.1, the clerk of superior court, with whom the 6 |
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| 106 | 111 | | petition has been filed, shall summon and appoint a jury of three disinterested persons who being 7 |
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| 107 | 112 | | first duly sworn shall promptly allot and set apart to the surviving spouse the life estate provided 8 |
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| 108 | 113 | | for in subsection (a) of this section and make a final report of this action to the clerk. 9 |
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| 109 | 114 | | (e) The final report shall be filed by the jury not more than 60 days after the their 10 |
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| 110 | 115 | | summoning and appointment thereof, appointment, shall be signed by all jurors, and shall 11 |
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| 111 | 116 | | describe by metes and bounds the real estate in which the surviving spouse shall have has been 12 |
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| 112 | 117 | | allotted and set aside a life estate. It shall be filed as a record of court and a certified copy thereof 13 |
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| 113 | 118 | | of it shall be filed and recorded in the office of the register of deeds of each county in which any 14 |
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| 114 | 119 | | part of the real property of the deceased spouse, affected by the allotment, is located. 15 |
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| 115 | 120 | | (f) In the election and procedure to have the life estate allotted and set apart provided for 16 |
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| 116 | 121 | | in this section, the rules of procedure relating to partition proceedings apply except insofar as the 17 |
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| 117 | 122 | | rules would be inconsistent with the provisions of this section. A determination of the life estate 18 |
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| 118 | 123 | | under this section may be appealed in accordance with G.S. 1-301.3. 19 |
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| 119 | 124 | | (g) Neither the household furnishings in the dwelling house nor the life estates estate 20 |
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| 120 | 125 | | taken by election under this section are subject to the payment of debts due from the estate of the 21 |
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| 121 | 126 | | deceased spouse, except those debts secured by such the property as follows: 22 |
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| 122 | 127 | | (1) By a mortgage or deed of trust in which the surviving spouse has waived the 23 |
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| 123 | 128 | | surviving spouse's rights by joining with the other spouse in the making 24 |
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| 124 | 129 | | thereof.spouse. 25 |
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| 125 | 130 | | (2) By a mortgage or deed of trust given by the deceased spouse to secure a loan, 26 |
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| 126 | 131 | | the proceeds of which were used to pay all or a portion of the purchase price 27 |
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| 127 | 132 | | of the encumbered real property, regardless of whether the secured party is the 28 |
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| 128 | 133 | | seller of the real property or a third-party lender, or by lender. 29 |
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| 129 | 134 | | (2a) By a conditional sales contract of personal property in which title is retained 30 |
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| 130 | 135 | | by the vendor, made prior to or during the marriage. 31 |
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| 131 | 136 | | (3) By a mortgage or deed of trust made prior to the marriage. 32 |
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| 132 | 137 | | (4) By a mortgage or deed of trust constituting a lien on the property at the time 33 |
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| 133 | 138 | | of its acquisition by the deceased spouse either before or during the marriage. 34 |
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| 134 | 139 | | (5) By a mortgage or deed of trust on property with respect to which the elective 35 |
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| 135 | 140 | | life estate provided for in this section does not apply as provided in subsection 36 |
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| 136 | 141 | | (a) of this section. 37 |
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| 137 | 142 | | (h) If no election is made in the manner and within the time provided for in subsection 38 |
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| 138 | 143 | | (c) of this section, the surviving spouse shall be is conclusively deemed to have waived the 39 |
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| 139 | 144 | | surviving spouse's right to elect to take under the provisions of this section, and any interest 40 |
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| 140 | 145 | | which that the surviving spouse may have had in the real estate of the deceased spouse by virtue 41 |
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| 141 | 146 | | of this section shall terminate.is terminated." 42 |
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| 142 | 147 | | SECTION 1.(b) This section applies to conveyances executed before, on, or after 43 |
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| 143 | 148 | | the effective date of this act. 44 |
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| 144 | 149 | | SECTION 2.(a) G.S. 39-13.3 reads as rewritten: 45 |
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| 145 | 150 | | "§ 39-13.3. Conveyances between husband and wife. 46 |
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| 146 | 151 | | (a) A conveyance from a husband or wife to the other spouse of real property or any 47 |
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| 147 | 152 | | interest therein in real property owned by the grantor alone vests such the property or interest in 48 |
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| 148 | 153 | | the grantee. The conveyance does not waive or release any of the following rights or claims that 49 |
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| 149 | 154 | | the grantor may have acquired by marriage in the property conveyed: 50 General Assembly Of North Carolina Session 2025 |
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| 151 | 156 | | (1) A right to an elective life estate under G.S. 29-30, unless the instrument of 1 |
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| 152 | 157 | | conveyance expressly waives the right, as provided in G.S. 29-30(a)(2a). 2 |
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| 153 | 158 | | (2) A right or claim to an equitable distribution with respect to the property under 3 |
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| 154 | 159 | | G.S. 50-20. A right or claim for equitable distribution shall not be waived or 4 |
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| 155 | 160 | | released in the instrument of conveyance. 5 |
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| 156 | 161 | | (b) Recodified as G.S. 41-56(b) by Session Laws 2020-50, s. 1(b), effective June 30, 6 |
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| 157 | 162 | | 2020. 7 |
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| 158 | 163 | | (c) Recodified as G.S. 41-63(4) by Session Laws 2020-50, s. 1(b), effective June 30, 8 |
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| 159 | 164 | | 2020. 9 |
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| 160 | 165 | | (d) The joinder of the spouse of the grantor in any conveyance made by a husband or a 10 |
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| 161 | 166 | | wife pursuant to the foregoing provisions of this section is not necessary. 11 |
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| 162 | 167 | | (e) Any conveyance authorized by this section is subject to the provisions of G.S. 52-10 12 |
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| 163 | 168 | | or 52-10.1, except that acknowledgment by the spouse of the grantor is not necessary." 13 |
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| 164 | 169 | | SECTION 2.(b) G.S. 41-63 reads as rewritten: 14 |
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| 165 | 170 | | "§ 41-63. Termination of tenancy by the entirety other than upon death of a spouse; effects 15 |
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| 166 | 171 | | of termination. 16 |
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| 167 | 172 | | Events terminating a tenancy by the entirety other than the death of a spouse and the effects 17 |
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| 168 | 173 | | of termination include the following: 18 |
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| 169 | 174 | | (1) The voluntary sale and conveyance of property held as tenants by the entirety 19 |
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| 170 | 175 | | to a third party, including a foreclosure sale pursuant to a power of sale in a 20 |
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| 171 | 176 | | deed of trust. Proceeds of the sale, including surplus funds generated from a 21 |
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| 172 | 177 | | foreclosure sale, are personal property held by the spouses as tenants in 22 |
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| 173 | 178 | | common. 23 |
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| 174 | 179 | | (2) The voluntary partition between the spouses executing a joint instrument 24 |
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| 175 | 180 | | conveying the property held as tenants by the entirety to themselves as tenants 25 |
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| 176 | 181 | | in common or in severalty. 26 |
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| 177 | 182 | | (3) The involuntary transfer of title of property held by spouses as tenants by the 27 |
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| 178 | 183 | | entirety. The proceeds resulting from the transfer are held by the spouses as 28 |
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| 179 | 184 | | tenants by the entirety. An involuntary transfer of title includes: 29 |
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| 180 | 185 | | a. A sale pursuant to Article 15 of Chapter 35A of the General Statutes 30 |
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| 181 | 186 | | as to an incompetent spouse. 31 |
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| 182 | 187 | | b. An appropriation in a condemnation proceeding by the North Carolina 32 |
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| 183 | 188 | | State Highway Commission. 33 |
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| 184 | 189 | | (4) The conveyance from one spouse to the other spouse of his or her interest in 34 |
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| 185 | 190 | | property held as tenants by the entirety. The conveyance vests the property or 35 |
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| 186 | 191 | | interest formerly held as tenants by the entirety in the other spouse. The 36 |
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| 187 | 192 | | joinder of a spouse in a conveyance made by the grantor pursuant to this 37 |
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| 188 | 193 | | subdivision is not necessary, but the conveyance is subject to the provisions 38 |
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| 189 | 194 | | of G.S. 52-10 or G.S. 52-10.1, except that an acknowledgment by the spouse 39 |
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| 190 | 195 | | of the grantor is not necessary.necessary. The conveyance does not waive or 40 |
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| 191 | 196 | | release any of the following rights or claims that the grantor may have 41 |
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| 192 | 197 | | acquired by marriage in the property conveyed: 42 |
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| 193 | 198 | | a. A right to an elective life estate under G.S. 29-30, unless the 43 |
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| 194 | 199 | | instrument of conveyance expressly waives the right, as provided in 44 |
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| 195 | 200 | | G.S. 29-30(a)(2a). 45 |
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| 196 | 201 | | b. A right or claim to an equitable distribution with respect to the 46 |
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| 197 | 202 | | property under G.S. 50-20. A right or claim for equitable distribution 47 |
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| 198 | 203 | | shall not be waived or released in the instrument of conveyance. 48 |
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| 199 | 204 | | (5) An absolute divorce of the spouses. An absolute divorce converts property 49 |
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| 200 | 205 | | held as tenants by the entirety to a tenancy in common. 50 General Assembly Of North Carolina Session 2025 |
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| 202 | 207 | | (6) A judgment of forfeiture ordering divestment of an interest in tenancy by the 1 |
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| 203 | 208 | | entirety pursuant to Chapter 75D of the General Statutes. The effect of a 2 |
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| 204 | 209 | | judgment when one spouse is an innocent person as defined in G.S. 75D-5(i) 3 |
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| 205 | 210 | | is governed by G.S. 75D-8(a)." 4 |
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| 206 | 211 | | SECTION 2.(c) Subdivisions (b)(1), (b)(3), and (b)(4) of G.S. 50-20 are recodified 5 |
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| 207 | 212 | | as subdivisions (b)(1b), (b)(1), and (b)(1a) of that section, respectively. 6 |
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| 208 | 213 | | SECTION 2.(d) G.S. 50-20, as amended by subsection (c) of this section, reads as 7 |
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| 209 | 214 | | rewritten: 8 |
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| 210 | 215 | | "§ 50-20. Distribution by court of marital and divisible property. 9 |
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| 211 | 216 | | (a) Upon application of a party, the court shall determine what is the marital property and 10 |
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| 212 | 217 | | divisible property and shall provide for an equitable distribution of the marital property and 11 |
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| 213 | 218 | | divisible property between the parties in accordance with the provisions of this section. 12 |
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| 214 | 219 | | (b) For purposes of this section:section, the following definitions apply: 13 |
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| 215 | 220 | | (1) "Distributive award" means payments Distributive award. – Payments that are 14 |
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| 216 | 221 | | payable either in a lump sum or over a period of time in fixed amounts, but 15 |
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| 217 | 222 | | shall the term does not include alimony payments or other similar payments 16 |
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| 218 | 223 | | for support and maintenance which are treated as ordinary income to the 17 |
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| 219 | 224 | | recipient under the Internal Revenue Code.or maintenance of a spouse or 18 |
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| 220 | 225 | | child. 19 |
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| 221 | 226 | | (1a) "Divisible property" means all Divisible property. – All real and personal 20 |
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| 222 | 227 | | property as set forth below: 21 |
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| 223 | 228 | | a. All appreciation and diminution in value of marital property and 22 |
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| 224 | 229 | | divisible property of the parties occurring after the date of separation 23 |
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| 225 | 230 | | and prior to the date of distribution, except that appreciation or 24 |
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| 226 | 231 | | diminution in value which that is the result of postseparation actions 25 |
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| 227 | 232 | | or activities of a spouse shall not be is not treated as divisible property. 26 |
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| 228 | 233 | | b. All property, property rights, or any portion thereof received after the 27 |
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| 229 | 234 | | date of separation but before the date of distribution that was acquired 28 |
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| 230 | 235 | | as a result of the efforts of either spouse during the marriage and before 29 |
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| 231 | 236 | | the date of separation, including, but not limited to, commissions, 30 |
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| 232 | 237 | | bonuses, and contractual rights. 31 |
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| 233 | 238 | | c. Passive income from marital property received after the date of 32 |
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| 234 | 239 | | separation, including, but not limited to, interest and dividends. 33 |
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| 235 | 240 | | d. Passive increases and passive decreases in marital debt and financing 34 |
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| 236 | 241 | | charges and interest related to marital debt. 35 |
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| 237 | 242 | | (1b) "Marital property" means all Marital property. – All real and personal property 36 |
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| 238 | 243 | | acquired by either spouse or both spouses during the course of the marriage 37 |
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| 239 | 244 | | and before the date of the separation of the parties, and presently owned, 38 |
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| 240 | 245 | | except property determined to be separate property or divisible property in 39 |
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| 241 | 246 | | accordance with subdivision (2) or (4) of this subsection. Marital property 40 |
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| 242 | 247 | | includes all vested and nonvested pension, retirement, and other pension and 41 |
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| 243 | 248 | | retirement rights and benefits, vested and nonvested deferred compensation 42 |
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| 244 | 249 | | rights, rights and benefits, and vested and nonvested military pensions eligible 43 |
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| 245 | 250 | | under the federal Uniformed Services Former Spouses Protection Act. It is 44 |
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| 246 | 251 | | presumed that all property acquired after the date of marriage and before the 45 |
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| 247 | 252 | | date of separation is marital property except property which that is separate 46 |
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| 248 | 253 | | property under subdivision (2) of this subsection. It is presumed that all real 47 |
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| 249 | 254 | | property creating a tenancy by the entirety acquired after the date of marriage 48 |
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| 250 | 255 | | and before the date of separation is marital property. Either presumption may 49 |
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| 251 | 256 | | be rebutted by the greater weight of the evidence. 50 General Assembly Of North Carolina Session 2025 |
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| 253 | 258 | | (2) "Separate property" means all Separate property. – All real and personal 1 |
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| 254 | 259 | | property acquired by a spouse before marriage or acquired by a spouse by 2 |
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| 255 | 260 | | devise, descent, or gift during the course of the marriage. However, property 3 |
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| 256 | 261 | | property, other than real property, acquired by gift from the other spouse 4 |
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| 257 | 262 | | during the course of the marriage shall be is considered separate property only 5 |
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| 258 | 263 | | if such an intention is this intent is expressly stated in the conveyance. in 6 |
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| 259 | 264 | | writing. Real property acquired by gift from the other spouse during the course 7 |
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| 260 | 265 | | of the marriage is considered separate property only if this intent is expressly 8 |
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| 261 | 266 | | stated in a written agreement separate from the conveyance in accordance with 9 |
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| 262 | 267 | | subsection (d) of this section. The act of conveying property from one spouse 10 |
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| 263 | 268 | | to the other does not in itself state this intent. Property acquired in exchange 11 |
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| 264 | 269 | | for separate property shall remain remains separate property regardless of 12 |
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| 265 | 270 | | whether the title is in the name of the husband or wife or both one or both 13 |
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| 266 | 271 | | spouses and shall is not be considered to be marital property unless a contrary 14 |
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| 267 | 272 | | intention the intent for the property to become marital property is expressly 15 |
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| 268 | 273 | | stated in the conveyance. in writing. The act of acquiring the property does 16 |
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| 269 | 274 | | not in itself state this intent. The increase in value of separate property and the 17 |
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| 270 | 275 | | income derived from separate property shall be is considered separate 18 |
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| 271 | 276 | | property. All professional licenses and business licenses which that would 19 |
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| 272 | 277 | | terminate on transfer shall be are considered separate property. 20 |
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| 273 | 278 | | (c) There shall be an equal division by using net value of marital property and net value 21 |
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| 274 | 279 | | of divisible property unless the court determines that an equal division is not equitable. If the 22 |
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| 275 | 280 | | court determines that an equal division is not equitable, the court shall divide the marital property 23 |
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| 276 | 281 | | and divisible property equitably. The court shall consider all of the following factors under this 24 |
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| 277 | 282 | | subsection: 25 |
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| 278 | 283 | | (1) The income, property, and liabilities of each party at the time the division of 26 |
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| 279 | 284 | | property is to become effective. 27 |
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| 280 | 285 | | (2) Any obligation for support arising out of a prior marriage. 28 |
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| 281 | 286 | | (3) The duration of the marriage and the age and physical and mental health of 29 |
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| 282 | 287 | | both parties. 30 |
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| 283 | 288 | | (4) The need of a parent with custody of a child or children of the marriage to 31 |
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| 284 | 289 | | occupy or own the marital residence and to use or own its household effects. 32 |
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| 285 | 290 | | (5) The expectation of pension, retirement, or other deferred compensation rights 33 |
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| 286 | 291 | | that are not marital property. 34 |
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| 287 | 292 | | (6) Any equitable claim to, interest in, or direct or indirect contribution made to 35 |
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| 288 | 293 | | the acquisition of such the marital property by the party not having title, 36 |
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| 289 | 294 | | including joint efforts or expenditures and contributions and services, or lack 37 |
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| 290 | 295 | | thereof, as a spouse, parent, wage earner earner, or homemaker. 38 |
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| 291 | 296 | | (7) Any direct or indirect contribution made by one spouse to help educate or 39 |
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| 292 | 297 | | develop the career potential of the other spouse. 40 |
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| 293 | 298 | | (8) Any direct contribution to an increase in value of separate property which that 41 |
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| 294 | 299 | | occurs during the course of the marriage. 42 |
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| 295 | 300 | | (9) The liquid or nonliquid character of all marital property and divisible property. 43 |
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| 296 | 301 | | (10) The difficulty of evaluating any component asset or any interest in a business, 44 |
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| 297 | 302 | | corporation corporation, or profession, and the economic desirability of 45 |
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| 298 | 303 | | retaining such the asset or interest, intact and free from any claim or 46 |
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| 299 | 304 | | interference by the other party. 47 |
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| 300 | 305 | | (11) The tax consequences to each party, including those federal and State tax 48 |
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| 301 | 306 | | consequences that would have been incurred if the marital and divisible 49 |
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| 302 | 307 | | property had been sold or liquidated on the date of valuation. The trial court 50 |
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| 303 | 308 | | may, however, in its discretion, consider whether or when such the tax 51 General Assembly Of North Carolina Session 2025 |
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| 305 | 310 | | consequences are reasonably likely to occur in determining the equitable value 1 |
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| 306 | 311 | | deemed appropriate for this factor. 2 |
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| 307 | 312 | | (11a) Acts of either party to maintain, preserve, develop, or expand; or to waste, 3 |
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| 308 | 313 | | neglect, devalue devalue, or convert the marital property or divisible property, 4 |
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| 309 | 314 | | or both, during the period after separation of the parties and before the time of 5 |
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| 310 | 315 | | distribution. 6 |
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| 311 | 316 | | (11b) In the event of the death of either party prior to the entry of any order for the 7 |
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| 312 | 317 | | distribution of property made pursuant to this subsection: 8 |
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| 313 | 318 | | a. Property passing to the surviving spouse by will or through intestacy 9 |
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| 314 | 319 | | due to the death of a spouse. 10 |
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| 315 | 320 | | b. Property held as tenants by the entirety or as joint tenants with rights 11 |
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| 316 | 321 | | of survivorship passing to the surviving spouse due to the death of a 12 |
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| 317 | 322 | | spouse. 13 |
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| 318 | 323 | | c. Property passing to the surviving spouse from life insurance, 14 |
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| 319 | 324 | | individual retirement accounts, pension or profit-sharing plans, any 15 |
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| 320 | 325 | | private or governmental retirement plan or annuity of which the 16 |
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| 321 | 326 | | decedent controlled the designation of beneficiary (excluding any 17 |
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| 322 | 327 | | benefits under the federal social security system), or any other 18 |
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| 323 | 328 | | retirement accounts or contracts, due to the death of a spouse. 19 |
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| 324 | 329 | | d. The surviving spouse's right to claim an "elective share" pursuant to 20 |
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| 325 | 330 | | G.S. 30-3.1 through G.S. 30-33, G.S. 30-31.2, unless otherwise 21 |
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| 326 | 331 | | waived. 22 |
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| 327 | 332 | | (12) Any other factor which that the court finds to be just and proper. 23 |
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| 328 | 333 | | (c1) Notwithstanding any other provision of law, a second or subsequent spouse acquires 24 |
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| 329 | 334 | | no interest in the marital property and divisible property of his or her spouse from a former 25 |
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| 330 | 335 | | marriage until a final determination of equitable distribution is made in the marital property and 26 |
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| 331 | 336 | | divisible property of the spouse's former marriage. 27 |
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| 332 | 337 | | (d) Before, during during, or after marriage the parties may by written agreement, duly 28 |
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| 333 | 338 | | executed and acknowledged in accordance with the provisions of G.S. 52-10 and 52-10.1, 29 |
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| 334 | 339 | | G.S. 52-10.1, or by a written agreement valid in the jurisdiction where executed, provide for 30 |
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| 335 | 340 | | distribution of the marital property or divisible property, or both, in a manner deemed by the 31 |
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| 336 | 341 | | parties to be equitable and the equitable. The agreement shall be is binding on the parties. As 32 |
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| 337 | 342 | | provided in G.S. 39-13.3(a)(2) and G.S. 41-63(4)b., the parties shall not provide for this 33 |
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| 338 | 343 | | distribution in an instrument of conveyance of real property. 34 |
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| 339 | 344 | | (e) Subject to the presumption of subsection (c) of this section that an equal division is 35 |
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| 340 | 345 | | equitable, it shall be presumed in every action that an in-kind distribution of marital or divisible 36 |
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| 341 | 346 | | property is equitable. This presumption may be rebutted by the greater weight of the evidence, 37 |
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| 342 | 347 | | or by evidence that the property is a closely held business entity or is otherwise not susceptible 38 |
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| 343 | 348 | | of division in-kind. In any action in which the presumption is rebutted, the court in lieu of in-kind 39 |
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| 344 | 349 | | distribution shall provide for a distributive award in order to achieve equity between the parties. 40 |
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| 345 | 350 | | The court may provide for a distributive award to facilitate, effectuate effectuate, or supplement 41 |
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| 346 | 351 | | a distribution of marital or divisible property. The court may provide that any distributive award 42 |
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| 347 | 352 | | payable over a period of time be secured by a lien on specific property. 43 |
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| 348 | 353 | | (f) The court shall provide for an equitable distribution without regard to alimony for 44 |
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| 349 | 354 | | either party or support of the children of both parties. After the determination of an equitable 45 |
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| 350 | 355 | | distribution, the court, upon request of either party, shall consider whether an order for alimony 46 |
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| 351 | 356 | | or child support should be modified or vacated pursuant to G.S. 50-16.9 or 50-13.7.G.S. 50-13.7. 47 |
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| 352 | 357 | | (g) If the court orders the transfer of real or personal property or an interest therein, in 48 |
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| 353 | 358 | | real or personal property, the court may also enter an order which shall transfer transferring title, 49 |
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| 354 | 359 | | as provided in G.S. 1A-1, Rule 70 Rule 70, and G.S. 1-228. 50 General Assembly Of North Carolina Session 2025 |
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| 356 | 361 | | (h) If either party claims that any real property is marital property or divisible property, 1 |
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| 357 | 362 | | that party may cause a notice of lis pendens to be recorded pursuant to Article 11 of Chapter 1 of 2 |
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| 358 | 363 | | the General Statutes. Any person whose conveyance or encumbrance is recorded or whose 3 |
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| 359 | 364 | | interest is obtained by descent, prior to the filing of the lis pendens, shall take takes the real 4 |
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| 360 | 365 | | property free of any claim resulting from the equitable distribution proceeding. The court may 5 |
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| 361 | 366 | | cancel the notice of lis pendens upon substitution of a bond with surety in an amount determined 6 |
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| 362 | 367 | | by the court to be sufficient provided the court finds that the claim of the spouse against property 7 |
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| 363 | 368 | | subject to the notice of lis pendens can be satisfied by money damages. 8 |
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| 364 | 369 | | (i) Upon filing an action or motion in the cause requesting an equitable distribution or 9 |
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| 365 | 370 | | alleging that an equitable distribution will be requested when it is timely to do so, a party may 10 |
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| 366 | 371 | | seek injunctive relief pursuant to G.S. 1A-1, Rule 65 Rule 65, and Chapter 1, Article 37, Article 11 |
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| 367 | 372 | | 37 of Chapter 1 of the General Statutes to prevent the disappearance, waste waste, or conversion 12 |
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| 368 | 373 | | of property alleged to be marital property, divisible property, or separate property of the party 13 |
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| 369 | 374 | | seeking relief. The court, in lieu of granting an injunction, may require a bond or other assurance 14 |
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| 370 | 375 | | of sufficient amount to protect the interest of the other spouse in the property. Upon application 15 |
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| 371 | 376 | | by the owner of separate property which that was removed from the marital home or possession 16 |
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| 372 | 377 | | of its owner by the other spouse, the court may enter an order for reasonable counsel fees and 17 |
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| 373 | 378 | | costs of court incurred to regain its possession, but such the fees shall not exceed the fair market 18 |
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| 374 | 379 | | value of the separate property at the time it was removed. 19 |
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| 375 | 380 | | (i1) Unless good cause is shown that there should not be an interim distribution, the court 20 |
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| 376 | 381 | | may, at any time after an action for equitable distribution has been filed and prior to the final 21 |
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| 377 | 382 | | judgment of equitable distribution, enter orders an order declaring what is separate property and 22 |
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| 378 | 383 | | may also enter orders an order dividing part of the marital property, divisible property or debt, or 23 |
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| 379 | 384 | | marital debt between the parties. The partial distribution may provide for a distributive award 24 |
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| 380 | 385 | | and may also provide for a distribution of marital property, marital debt, divisible property, or 25 |
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| 381 | 386 | | divisible debt. Any such orders entered shall be taken into consideration at trial and shall be given 26 |
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| 382 | 387 | | proper credit given.credit. 27 |
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| 383 | 388 | | Hearings held pursuant to this subsection may be held at sessions arranged by the chief 28 |
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| 384 | 389 | | district court judge pursuant to G.S. 7A-146 and, if held at such these sessions, shall are not be 29 |
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| 385 | 390 | | subject to the reporting requirements of G.S. 7A-198. 30 |
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| 386 | 391 | | (j) In any order for the distribution of property made pursuant to this section, the court 31 |
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| 387 | 392 | | shall make written findings of fact that support the determination that the marital property and 32 |
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| 388 | 393 | | divisible property has been equitably divided. 33 |
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| 389 | 394 | | (k) The rights of the parties to an equitable distribution of marital property and divisible 34 |
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| 390 | 395 | | property are a species of common ownership, the rights of the respective parties vesting at the 35 |
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| 391 | 396 | | time of the parties' separation. 36 |
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| 392 | 397 | | (l) The following applies regarding the death of a spouse: 37 |
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| 393 | 398 | | (1) A claim for equitable distribution, whether an action is filed or not, survives 38 |
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| 394 | 399 | | the death of a spouse so long as the parties are living separate and apart at the 39 |
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| 395 | 400 | | time of death. 40 |
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| 396 | 401 | | (2) The provisions of Article 19 of Chapter 28A of the General Statutes shall be 41 |
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| 397 | 402 | | is applicable to a claim for equitable distribution against the estate of the 42 |
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| 398 | 403 | | deceased spouse. 43 |
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| 399 | 404 | | (3) Any claim for equitable distribution against the surviving spouse made by the 44 |
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| 400 | 405 | | estate of the deceased spouse must shall be filed with the district court within 45 |
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| 401 | 406 | | one year of the date of death of the deceased spouse or be forever barred." 46 |
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| 402 | 407 | | SECTION 2.(e) G.S. 39-13.3(a)(1) and G.S. 41-63(4)a., as enacted by this section 47 |
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| 403 | 408 | | regarding an elective life estate, apply to conveyances executed before, on, or after the effective 48 |
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| 404 | 409 | | date of this act. The remainder of this section applies to conveyances executed on or after the 49 |
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| 405 | 410 | | effective date of this act. 50 |
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| 406 | 411 | | SECTION 3. This act becomes effective October 1, 2025. 51 |
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