Can Property Division Happen When One Spouse Defaults?

Most marriages don’t end because of one dramatic moment. They end because one person gradually stops engaging in the relationship, and as it turns out, some spouses carry that same habit straight into the courtroom.

Upwards of 95% of divorces in the US are settled outside of a courtroom, but for the cases that do reach a judge, a surprising number of respondents do not make appearances or participate whatsoever.

It can be tempting to think that silence ends the fight and guarantees the other spouse a win. But as Arrington v. Arrington shows, that is not how property division works in North Carolina. Even when one spouse defaults, the court still has to decide what is fair.

Background

Tammy and James Arrington married in 2013 and separated on their anniversary, seven years later in 2020.

The wife, Tammy Arrington, filed a claim for equitable distribution and specifically asked the court for an unequal division of the marital estate. James Arrington did not file a response on time, so a default was entered against him.

Even with James’s default, the case continued through the equitable distribution process, including hearings, affidavits, and evidence about the parties’ property and debts.

Then, at the final hearing, the trial court reviewed the marital estate and decided that a 50/50 split would not be equitable.

The court awarded James a larger share of the marital property, including the marital home, while also allocating various debts between the parties.

Tammy appealed, arguing that a defaulting spouse who never even asked for an unequal distribution couldn’t possibly be entitled to one. And yet, the North Carolina Court of Appeals disagreed.

What Happened During the Appeal?

The Court of Appeals explained that a default limits how a spouse can take part in the case, but it does not make the property division claim disappear. It’s still the trial court’s job to decide how to divide the marital property fairly.

Once the court determines that an equal division would be unfair, it has broad discretion to make an unequal distribution based on the statutory factors in N.C. Gen. Stat. § 50-20(c), even if that result benefits the spouse who did not request it.

Long story short: the Court of Appeals rejected her appeal.

What Does this Mean for Divorcing Spouses?

Do not assume procedural default guarantees a favorable property award! The whole point of North Carolina’s equitable distribution law is to divide marital property fairly. Just because James defaulted doesn’t mean he should be punished by receiving less property.

The only thing the default actually does in this situation is make it so that James no longer has the right to contest the case. It did not cost him his right to a just outcome.

A trial court may consider the parties’ income, debts, post-separation conduct relating to marital property, and other statutory factors when deciding whether an unequal division is appropriate. In Arrington, the appellate court emphasized that once the trial judge found a 50/50 split would be inequitable, the judge had the discretion to divide the estate accordingly.

Reach Out and We Can Help

If you are facing equitable distribution or a complex divorce in North Carolina, Woodruff Family Law Group can help you protect what matters most. Contact our Greensboro family law team to schedule a consultation and build a strategy for moving forward.