South Carolina Equitable Distribution Guide

South Carolina follows the equitable distribution model when dividing property in divorce, meaning courts aim for a fair division—not necessarily equal. Under S.C. Code § 20-3-620, judges must consider 15 statutory factors when apportioning marital property, giving them broad discretion to craft outcomes based on each couple's unique circumstances. Understanding these rules is essential whether you're pursuing an uncontested or contested divorce.

This guide explains how South Carolina courts identify, value, and divide marital assets—including the critical distinction between marital and non-marital property, the transmutation doctrine that can convert separate property into marital assets, and strategies to protect your financial interests.

South Carolina's Four-Step Property Division Process

South Carolina courts follow a structured approach to dividing property in divorce, established through decades of case law:

Before you negotiate, know the numbers. Estimate your South Carolina divorce costs:

1. Identify: Determine what property exists and who owns it
2. Classify: Categorize each asset as marital or non-marital
3. Value: Establish the fair market value of marital assets
4. Apportion: Divide marital property equitably using the 15 statutory factors

Unlike community property states that split everything 50/50, South Carolina's equitable distribution system allows courts to consider the full picture of a marriage when deciding who gets what. This flexibility can work in your favor—or against you—depending on the facts.

Marital vs. Non-Marital Property: The Critical Distinction

Under S.C. Code § 20-3-630, only marital property is subject to equitable distribution. Non-marital property remains with its original owner. The classification matters enormously—it can mean the difference between keeping an inheritance and splitting it.

What Qualifies as Marital Property

Marital property includes all real and personal property acquired by either spouse during the marriage, regardless of how title is held. This encompasses:

• Real estate purchased during the marriage
• Retirement accounts and pensions earned during the marriage
• Businesses started or grown during the marriage
• Vehicles, furniture, and personal property acquired during the marriage
• Investment accounts funded with marital income
• Appreciation of marital assets (and sometimes non-marital assets—more on this below)

What Remains Non-Marital Property

Non-marital property stays with the original owner and is not divided. This includes:

• Property owned before the marriage
• Inheritances received by one spouse, even during the marriage
• Gifts from third parties to one spouse
• Property excluded by valid prenuptial or postnuptial agreement
• Property acquired after final separation (with exceptions)

The burden of proving property is non-marital falls on the spouse claiming the exemption. Without clear documentation, courts may presume property acquired during the marriage is marital.

The Transmutation Doctrine: When Separate Becomes Marital

One of the most important—and often surprising—concepts in South Carolina property division is transmutation. Separate property can become marital property when spouses treat it as a shared asset through their actions or intent.

Courts look at whether the parties intended to treat the property as marital. Evidence of transmutation includes:

• Adding a spouse's name to title (creating a presumption of transmutation)
• Commingling separate funds with marital accounts
• Using marital funds for improvements or mortgage payments
• Joint use and control of the property over time
• Statements or conduct indicating shared ownership intent

The presumption of transmutation can be rebutted by showing the property remains non-marital. Courts conduct a fact-intensive analysis, examining evidence like account statements, deeds, and testimony about the parties' intentions.

Appreciation of Non-Marital Property

When non-marital property increases in value during the marriage, the appreciation may or may not be marital depending on its cause:

• Passive appreciation (market forces, inflation) generally remains non-marital
• Active appreciation (from marital labor or funds) becomes marital property

For example, if a spouse owned a rental property before marriage that doubled in value purely due to market conditions, that appreciation stays non-marital. But if the couple used marital income to renovate the property or the owner-spouse actively managed it during the marriage, the appreciation may be partially or fully marital.

The 15 Statutory Factors for Equitable Apportionment

Under S.C. Code § 20-3-620, courts must consider these factors when dividing marital property:

1. Duration of the Marriage

Longer marriages often result in closer-to-equal divisions. Short marriages may see each spouse leave with primarily what they brought in. South Carolina courts have noted that for long-term marriages, an equal split is often the starting point.

2. Marital Misconduct or Fault

Unlike many equitable distribution states, South Carolina explicitly allows courts to consider fault in property division—but only if the misconduct affected the parties' economic circumstances. Dissipation of marital assets during an affair, for instance, can influence the split. Mere emotional betrayal without economic impact typically doesn't affect property division.

3. Value of Marital Property

The total value of the marital estate affects how courts approach division. High-value estates may allow for more creative solutions; smaller estates require practical decisions about limited resources.

4. Income and Earning Potential

Courts consider each spouse's income, earning capacity, and economic circumstances. A spouse with significantly higher earning potential may receive less property to balance overall outcomes.

5. Physical and Emotional Health

Health conditions affecting a spouse's ability to work or need for ongoing care can influence property division. Courts may award more property to a spouse with health limitations.

6. Need for Training or Education

If one spouse needs additional training or education to become self-supporting, this factors into the analysis. Courts may award more property or alimony to facilitate re-entry into the workforce.

7. Non-Marital Property of Each Spouse

The court considers each party's separate property when crafting an equitable overall outcome. A spouse with substantial non-marital assets may receive less marital property.

8. Vested Retirement Benefits

Retirement accounts—including pensions, 401(k)s, and IRAs—are specifically mentioned as a factor. Courts use coverture fractions to isolate the marital portion of these accounts.

9. Alimony Awards

Whether alimony will be awarded, and how much, factors into property division. Courts may adjust the property split based on support arrangements.

10. Contribution to Acquisition of Property

This includes both direct financial contributions and indirect contributions like homemaking, childcare, and supporting a spouse's career. A stay-at-home parent's contributions are legally recognized as valuable.

11. Tax Consequences

Courts must consider the tax implications of property transfers. Different assets have different after-tax values—$100,000 in a brokerage account is worth more than $100,000 in a pre-tax 401(k).

12. Support Obligations from Prior Marriages

Child support or alimony obligations from previous marriages affect a spouse's financial situation and may influence property division.

13. Liens and Encumbrances on Property

Courts consider debts secured by marital property—mortgages, home equity loans, and similar encumbrances—when valuing and dividing assets.

14. Child Custody Arrangements

The desirability of awarding the family home to the custodial parent can influence property division. Learn more about who gets the house in a divorce. Stability for children often weighs heavily in these decisions.

15. Any Other Relevant Factors

This catch-all provision gives courts flexibility to consider circumstances unique to each case. It ensures no relevant factor is excluded from the analysis.

Special Considerations for Complex Assets

Retirement Accounts and Pensions

South Carolina courts divide the marital portion of retirement benefits using a coverture fraction:

Marital Portion = Plan Value × (Months married while employed ÷ Total months of employment)

Division typically requires a Qualified Domestic Relations Order (QDRO) for employer-sponsored plans. QDROs allow the non-employee spouse to receive their share directly from the plan administrator.

Businesses and Professional Practices

Valuing businesses requires expert appraisers who analyze historical financials, market conditions, and comparable sales. Courts consider:

• When the business was started (before or during the marriage)
• Each spouse's role in building the business
• Active vs. passive appreciation during the marriage
• Goodwill (enterprise vs. personal goodwill)

South Carolina courts distinguish between "enterprise goodwill" (tied to the business itself) and "personal goodwill" (tied to the individual owner). Only enterprise goodwill is typically included in marital property.

The Marital Home

The family residence often carries both financial and emotional significance. Options include:

• One spouse buys out the other's equity interest
• The property is sold and proceeds divided
• Deferred sale until children reach majority
• Awarding the home to the custodial parent under factor (14)

How South Carolina Divides Marital Debt

Debts incurred during the marriage for marital purposes are typically divided equitably. Courts consider:

• Purpose of the debt: Was it for joint/family expenses or purely individual?
• Who benefited: Credit card debt for family expenses is typically shared
• Student loans: Often assigned to the degree-holder, especially if the degree primarily benefits that spouse
• Dissipation: Debts from gambling or affairs may be assigned entirely to the responsible spouse

The court's allocation of debt between the spouses does not affect creditor rights. If one spouse is ordered to pay a joint debt but defaults, the creditor can still pursue the other spouse.

Special Equity: Credit for Non-Marital Contributions

When a spouse uses non-marital funds to acquire or improve marital property, South Carolina courts may award a special equity. For example, if you used inheritance money for a down payment on the marital home, you may receive credit for that non-marital contribution before the remaining equity is divided.

Documenting these contributions is essential. Keep records showing:

• The source of non-marital funds
• How the funds were used
• That the funds remained separate (not commingled)

Valuation Date: When Property Is Valued

South Carolina courts have discretion to select the valuation date for marital assets. Common options include:

• Date of filing: When the divorce petition was served
• Date of separation: When the parties physically separated
• Date of hearing: The most current values

The choice of valuation date can significantly impact the division, particularly for volatile assets like businesses or stock portfolios. Courts may use different dates for different assets to achieve equity.

Practical Tips for South Carolina Property Division

Preserving your separate property requires careful planning, especially given South Carolina's transmutation doctrine. For detailed strategies on maintaining the non-marital character of your assets, see our guide on how to protect separate property in South Carolina divorce.

1. Document everything: Gather bank statements, retirement account statements, tax returns, and property records from before and during the marriage
2. Trace non-marital property: Maintain clear records showing the source and character of separate assets
3. Avoid commingling: Keep inherited or premarital assets in separate accounts when possible
4. Consider transmutation risks: Adding a spouse to title or using marital funds can convert separate property
5. Get expert valuations: Businesses, real estate, and professional practices require professional appraisal
6. Account for taxes: Compare after-tax values when negotiating asset allocation
7. Understand the timeline: South Carolina requires specific waiting periods and procedures

Need a Deeper Analysis?

The calculator above gives you a quick estimate. For a comprehensive breakdown covering property classification, transmutation risks, and equitable apportionment strategies, get your full analysis here.

Next Steps for Your South Carolina Divorce

Understanding South Carolina's equitable distribution system is essential for protecting your financial interests. Key takeaways:

• South Carolina divides only marital property—non-marital assets stay with their owner
• Courts follow a four-step process: identify, classify, value, and apportion
• 15 statutory factors guide the equitable division analysis
• Fault can affect property division if it impacted economic circumstances
• The transmutation doctrine can convert separate property into marital assets
• Special equity may protect non-marital contributions to marital property

For official forms and filing information, visit South Carolina Judicial Branch Self-Help Resources or review the South Carolina divorce filing checklist. Given the complexity of property division, consulting with a family law attorney is strongly recommended for divorces involving significant assets.