Equitable Distribution

The distribution of marital and divisible property and debts is referred to as Equitable Distribution (hereinafter referred to as "ED"). You and your spouse are free to settle this claim on any terms which are acceptable to both of you. However, if you cannot agree and your case proceeds to trial, the judge will resolve the claim in four steps, as follows:

1. Identification: The judge will identify all assets and debts as of your date of separation and will determine what property has been acquired from the date of separation through the date of trial.
2. Classification: The judge will classify each item of property as marital property, separate property, or divisible property. The judge will classify the debts in the same manner. Your attorney will explain these legal terms to you. The judge can only distribute marital property, divisible property, marital debts, and divisible debts.
3. Valuation: The next step is to determine the net value of the assets and determine the amount of the debts. Net value is fair market value of the asset less the amount of any debts which are liens upon it. In some cases the value is obvious, such as the balance of funds on deposit in a bank account. In other cases, value is not clear, and it may be necessary to obtain an appraisal of the value by a qualified appraiser.
4. Distribution: The fourth step is the actual distribution of the assets and debts. There is a presumption than an equitable distribution is a division of assets and debts in two shares of approximately equal net value. However, the judge may distribute the property in an unequal fashion and give one party more than half of the total net value of the assets. There are thirteen statutory factors which the judge may consider in deciding whether the property division will be equal or unequal.

If you or a loved one is in need of legal assistance, call Lea, Rhine & Rosbrugh, P.L.L.C. at 910-772-9960 or toll free 866-772-9960 or submit an online questionnaire.