AUTOMATIC ORD/EQUITABLE DISTRIBUTION CLAIM.

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View NCGA Bill Details(link is external)2025-2026 Session
House Bill 866 (Public) Filed Wednesday, April 9, 2025
AN ACT TO REQUIRE AUTOMATIC ENTRY OF AN ORDER PROHIBITING SPOUSES FROM WASTING, CONVERTING, OR SECRETING ASSETS UPON FILING A CLAIM FOR EQUITABLE DISTRIBUTION.
Intro. by Stevens, Budd.

Status: Ref to the Com on Judiciary 2, if favorable, Rules, Calendar, and Operations of the House (House action) (Apr 10 2025)
H 866

Bill Summaries:

  • Summary date: Apr 9 2025 - View Summary

    Enacts GS 50-23 (Automatic order for equitable distribution claims), which creates a standing order to prevent waste of assets or increasing of debt when an equitable distribution claim is filed. Requires the court to enter the form order created by the Administrative Office of the Courts (AOC). Lays out the automatic order provisions, which include specifying that neither party may, without written consent of the other party or order of the court, transfer or dispose of property, withdraw or claim benefits from retirement accounts, or remove the other as beneficiary for any accounts, life insurance, or coverage for medical or dental insurance. Specifies that the automatic order must be served by the plaintiff along with the summons and complaint. Makes the order binding and in effect until the court terminates or modifies it.

    Directs the AOC to develop a form for the automatic order with the case caption, finding that the claim has been filed, and the requirements from GS 50-23. Requires AOC to provide this form on its website by October 1, 2025.

    Amends GS 50-20(c) to include being held in contempt of court for violating the automatic order under GS 50-23 as a factor for the court to consider when making an equitable division of property.

    Amends GS 50-21(a) to require entry of the automatic order upon filing of the initial claim for equitable distribution and makes corresponding changes to the statute.

    Effective and applicable to claims filed on or after October 1, 2025.