Bill > H866

This bill establishes an automatic court order that goes into effect when a spouse files an equitable distribution claim during a divorce proceeding in North Carolina, designed to prevent either party from unfairly manipulating or hiding assets during the separation process. The automatic order restricts both parties from selling, transferring, encumbering, or disposing of various types of property, including real estate, personal property, bank accounts, retirement accounts, and assets owned by children, without the other party's written consent or a court order. The order also prohibits parties from incurring unreasonable debts, removing each other as beneficiaries or account holders, canceling insurance policies, or removing the other spouse or children from existing medical and life insurance coverage. The order becomes binding immediately upon filing for the plaintiff and upon service for the defendant, and remains in effect until a final equitable distribution order is entered. Additionally, the bill modifies existing state law to allow courts to consider whether a party has been held in contempt of this automatic order as a factor in determining the equitable distribution of assets. The Administrative Office of the Courts is required to develop a standard form for this automatic order by October 1, 2025, and the law will apply to all equitable distribution claims filed on or after that date.

Government Affairs, Justice

https://www.ncleg.gov/BillLookUp/2025/H866