§ 50-21. Procedures in actions for equitable distribution of property; sanctions for purposeful and prejudicial delay.
§ 50‑21. Procedures inactions for equitable distribution of property; sanctions for purposeful andprejudicial delay.
(a) At any time after ahusband and wife begin to live separate and apart from each other, a claim forequitable distribution may be filed and adjudicated, either as a separate civilaction, or together with any other action brought pursuant to Chapter 50 of theGeneral Statutes, or as a motion in the cause as provided by G.S. 50‑11(e)or (f). Within 90 days after service of a claim for equitable distribution, theparty who first asserts the claim shall prepare and serve upon the opposingparty an equitable distribution inventory affidavit listing all propertyclaimed by the party to be marital property and all property claimed by the partyto be separate property, and the estimated date‑of‑separation fairmarket value of each item of marital and separate property. Within 30 daysafter service of the inventory affidavit, the party upon whom service is madeshall prepare and serve an inventory affidavit upon the other party. Theinventory affidavits prepared and served pursuant to this subsection shall besubject to amendment and shall not be binding at trial as to completeness orvalue. The court may extend the time limits in this subsection for good causeshown. The affidavits are subject to the requirements of G.S. 1A‑1, Rule11, and are deemed to be in the nature of answers to interrogatories propoundedto the parties. Any party failing to supply the information required by thissubsection in the affidavit is subject to G.S. 1A‑1, Rules 26, 33, and37. During the pendency of the action for equitable distribution, discovery mayproceed, and the court shall enter temporary orders as appropriate andnecessary for the purpose of preventing the disappearance, waste, ordestruction of marital or separate property or to secure the possessionthereof.
Real or personal propertylocated outside of North Carolina is subject to equitable distribution inaccordance with the provisions of G.S. 50‑20, and the court may includein its order appropriate provisions to ensure compliance with the order ofequitable distribution.
(b) For purposes ofequitable distribution, marital property shall be valued as of the date of theseparation of the parties, and evidence of preseparation and postseparationoccurrences or values is competent as corroborative evidence of the value ofmarital property as of the date of the separation of the parties. Divisibleproperty and divisible debt shall be valued as of the date of distribution.
(c) Nothing in G.S. 50‑20or this section shall restrict or extend the right to trial by jury as providedby the Constitution of North Carolina.
(d) Within 120 daysafter the filing of the initial pleading or motion in the cause for equitable distribution,the party first serving the pleading or application shall apply to the court toconduct a scheduling and discovery conference. If that party fails to makeapplication, then the other party may do so. At the conference the court shalldetermine a schedule of discovery as well as consider and rule upon any motionsfor appointment of expert witnesses, or other applications, includingapplications to determine the date of separation, and shall set a date for thedisclosure of expert witnesses and a date on or before which an initialpretrial conference shall be held.
At the initial pretrialconference the court shall make inquiry as to the status of the case and shallenter a date for the completion of discovery, the completion of a mediatedsettlement conference, if applicable, and the filing and service of motions,and shall determine a date on or after which a final pretrial conference shallbe held and a date on or after which the case shall proceed to trial.
The final pretrial conferenceshall be conducted pursuant to the Rules of Civil Procedure and the GeneralRules of Practice in the applicable district or superior court, adoptedpursuant to G.S. 7A‑34. The court shall rule upon any matters reasonablynecessary to effect a fair and prompt disposition of the case in the interestsof justice.
(e) Upon motion ofeither party or upon the court's own initiative, the court shall impose anappropriate sanction on a party when the court finds that:
(1) The party haswillfully obstructed or unreasonably delayed, or has attempted to obstruct orunreasonably delay, discovery proceedings, including failure to make discoverypursuant to G.S. 1A‑1, Rule 37, or has willfully obstructed orunreasonably delayed or attempted to obstruct or unreasonably delay any pendingequitable distribution proceeding, and
(2) The willfulobstruction or unreasonable delay of the proceedings is or would be prejudicialto the interests of the opposing party.
Delayconsented to by the parties is not grounds for sanctions. The sanction mayinclude an order to pay the other party the amount of the reasonable expensesand damages incurred because of the willful obstruction or unreasonable delay,including a reasonable attorneys' fee, and including appointment by the court,at the offending party's expense, of an accountant, appraiser, or other expertwhose services the court finds are necessary to secure in order for thediscovery or other equitable distribution proceeding to be timely conducted. (1981, c. 815, s. 6; 1983, c.671, s. 1; 1985, c. 689, s. 21; 1987, c. 844, s. 1; 1991, c. 610, s. 2; 1991(Reg. Sess., 1992), c. 910, s. 1; 1993, c. 209, s. 1; 1995, c. 244, s. 1; c.245, s. 1; 1997‑302, s. 2; 2001‑364, s. 1.)