HB 866 — Automatic Order/Equitable Distribution Claim.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 21 HOUSE BILL 866 Committee Substitute Favorable 4/29/25 Short Title:

Representatives Stevens and Budd (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Judiciary 2, if favorable, Rules, Calendar, and Operations of the House April 10, 2025 A BILL TO BE ENTITLED AN ACT TO REQUIRE AUTOMATIC ENTRY OF AN ORDER PROHIBITING SPOUSES FROM WASTING, CONVERTING, OR SECRETING ASSETS UPON FILING A CLAIM FOR EQUITABLE DISTRIBUTION.

(3) Neither party shall sell, transfer, encumber, assign, remove, withdraw, or in any way dispose of any property owned by or for the benefit of the children, includingany529planaccounts,realestate,personalproperty,cash, accounts, stocks, mutual funds, bank accounts, loyalty points or miles, and cars whether individually or jointly titled, except for customary and usual expenses *H866-v-1* General Assembly Of North Carolina Session 2025 historically paid for the benefit of the children from those assets without the consent of the other party in writing or by order of the court.

*H866-v-2* General Assembly Of North Carolina Session 2025 (4) Neither party shall incur unreasonable debts hereafter, including further borrowing against any credit line secured by the family residence, further encumbering any assets, or unreasonably using credit cards or cash advances against credit cards, except in the usual course of business or for customary and usual household expenses, or for reasonable attorneys' fees in connection with any claim filed under this Chapter.

(f) Entry of the automatic order shall not replace,limit limit, or restrict other remedies or protections available to the parties,parties." includingfiling a lis pendens or obtainingan injunction under Rule 65 of the North Carolina Rules of Civil Procedure." SECTION 1.2.

SECTION1.3.SECTION 1.3.

Section1.1ofthisactbecomeseffectiveOctober1,2025,andappliesSections to1.2 actionsand or1.3 claimsof filedthis onact orare aftereffective thatwhen date.they become law.

SECTION 2.1.2.

If the court determines that an equal division is not equitable, the court shall divide the marital property Page 2 House Bill 866-Second866-First Edition General Assembly Of North Carolina Session 2025 and divisible property equitably.

House Bill 866-Second866-First Edition Page 3 General Assembly Of North Carolina Session 2025 (12) Any other factor which the court finds to be just and proper." SECTION2.2.SECTION 3.

Section2.1ofthisactbecomeseffectiveOctober1,2025,andapplies to actions or claims filed on or after that date.

SECTION 3.1.

Within 30 days after service of theinventoryaffidavit, thepartyuponwhomserviceis made shall prepareandserveprepareand anserve inventoryaninventory affidavit upon the other party.

Realorpersonal propertylocatedoutsideofNorthpropertylocatedoutsideofNorthCarolinaissubject Carolinaissubject toequitabledistribution in accordance with the provisions of G.S.

…." SECTION3.2.SECTION 4.

Section3.1ofthisactbecomeseffectiveOctober1,2025,andappliesSection to4 actionsis oreffective claimswhen filedit onbecomes orlaw. after that date.

SECTIONExcept 4.as otherwise provided, this act becomes effective October 1, 2025, and applies to actions or claims filed on or after that date.

ExceptPage as4 otherwiseHouse provided,Bill this866-First actEdition is effective when it becomes law.

Page 4 House Bill 866-Second Edition