Section 1

Amends GS Chapter 50 adding Article 6, “Complex Family Financial Cases” establishing a procedure for their designation and becomes effective as of July 1, 2025. Defines chief hearing officer (a hearing officer designated by the Chief Justice who determines which cases are designated as complex, assigns designated cases, and prepares reports), complex family financial case (eligible claims in cases designated as complex including equitable distribution, alimony, post separation support, child support, or any combination thereof), and hearing officer (individual appointed to hear and enter orders in complex family financial cases).

Requires the Chief Justice to appoint hearing officers and designate a chief hearing officer. Establishes that hearing officers are employees of the Administrative Office of the Courts (AOC). Sets out the minimum qualifications for a hearing officer. Requires hearing officers to be North Carolina attorneys in good standing with the NC State Bar with a history of substantial involvement in complex family law cases in the 10 calendar years prior to the year of application. Substantial involvement includes an average of at least 600 hours per year handling complex family financial cases with no less than 400 hours in any one year. Requires hearing officers to have completed at least 45 hours of continuing legal education (CLE) credits in family law, nine of which may be in related fields, in the five calendar years prior to the year of application. Caps the number of CLE credits at 9 hours for attendance at an extended negotiation or mediation training course and excludes CLE credits for parenting coordinator training. Requires 10 satisfactory peer reviews by lawyers or judges with personal knowledge of the applicants’ handling of complex family financial cases. Excludes peer reviews by relations by blood or marriage or colleagues at the same place of employment at the time of the application.

Establishes the annual salary for a hearing officer as set forth in the Current Operations Appropriations Act for business court judges. Provides for travel reimbursement on the same basis as State employees generally and for reimbursement for travel and subsistence expenses incurred for professional education. Excludes reimbursement for travel within the hearing officer’s county of residence. Provides for hearing officers to receive longevity pay as set forth in the Current Operations Appropriations Act based on years of service. Service is defined as serving as a justice or judge, as a member of the Utilities Commission, as an administrative law judge, as director or assistant director of the AOC, as a hearing officer, as a district attorney, or as a clerk of superior court.

Requires hearing officers to conduct hearings and ensure the parties’ due process rights are protected and take related specified actions. Grants authority to hearing officers to enter temporary, interim, and final orders related to the issues being heard and to enter orders granting or denying motions. Specifies that these orders have the same force and effect as orders entered by a district court judge and that hearing officers have statewide authority to conduct hearings on complex family financial cases. Requires hearing officers to complete at least nine hours of CLE credit in family law or related fields annually. Caps at one hour per year CLE credit for attendance at negotiation or mediation training and excludes CLE credit for parent coordinator training.

Sets out the procedure for designation of a complex family financial claim beginning January 1, 2026. Requires the party seeking the designation to file and serve a Notice of Designation (the notice) on all parties or counsel and on the chief hearing officer. Requires the party to succinctly state in the notice any factors as enumerated in the new GS 50-114 and the reasons that support a complex case designation. Deems as waived any factor or reasons not asserted in the notice. Gives the other party 30 days to file and serve an opposition to the notice. Deems as waived any opposition to any factor or reason not asserted in the opposition. Requires the chief hearing officer to enter a written order within 45 days of service of the notice determining whether the action should be designated as a complex family financial claim and file the order in the county where the action was filed. Requires parties in cases designated as complex to share equally the additional filing fee for complex family financial cases in amended GS 7A-305 (see below). Requires the chief hearing officer to assign to a hearing officer claims designated as complex. Limits all proceedings in the claim to be heard by the assigned hearing officer. Provides that claims that are denied a complex case designation are heard as all other claims filed under GS Chapter 50. Applies the rules in GS Chapter 50, Article 1, the NC Rules of Civil Procedure, the NC Rules of Evidence, and applicable local rules of court to complex family financial cases.

Identifies 13 factors for the chief hearing officer to consider when determining whether to designate a claim as a complex family financial case. These factors include valuation and classification issues of assets, changes in value of separate property, tax issues, pre- and post-marital agreements, total value of the estate, the parties’ incomes, and the length of time requested for trial. Gives priority to claims filed in excess of 365 days and requested trial dates in excess of 15 days.

Limits motion hearings to remote proceedings unless good cause exists for in-person hearings. Requires in-person hearings on the issues and subjects such hearings to requirements for recording and maintenance of exhibits. Requires such hearings to be scheduled on consecutive days. Designates the location for all in-person hearings as the county where the action was filed in an available courtroom staffed by a deputy or assistant clerk and a bailiff. Establishes appeals of orders entered by a hearing officer as provided in amended GS 7A-27(b) (see below).

Section 2

Requires the Chief Justice to appoint three hearing officers and designate one of them as the chief hearing officer by September 1, 2025. Authorizes the Chief Justice to create additional rules or procedures as necessary. Requires the chief hearing officer and the AOC to prepare and submit an initial report to the Joint Legislative Oversight Committee on Justice and Public Safety and the Fiscal Research Division on or before August 1, 2026, and an annual report thereafter. Enumerates seven items to be included in the annual report, including statistics on disposition of cases and recommendations for improvement or expansion of the program.

Section 3

Amends GS 7A-305(a)(2) assessing an additional filing fee for claims designated as complex family financial claims. Requires each party to pay $1,100 upon assignment of the claim as complex.

Amends GS 7A-27(b) adding new subsections (5) and (6) regarding appeals of right in complex family financial cases to the Court of Appeals. Provides for appeals of right directly to the Court of Appeals from any final judgment of a hearing officer in a complex family financial case and from any interlocutory order of judgment of a hearing officer if it (a) affects a substantial right, (b) determines the action and prevents a judgment from which an appeal might be taken, (c) discontinues the action, (d) grants or refuses a new trial, or (e) determines a claim prosecuted under GS 50-19.1.