Lund v. Lund , 244 N.C. App. 279 ( 2015 )


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  •               IN THE COURT OF APPEALS OF NORTH CAROLINA
    No. COA15-175
    Filed: 1 December 2015
    Buncombe County, No. 13 CVD 1382
    JEANNE LUND, Plaintiff,
    v.
    ROBERT LUND, Defendant.
    Appeal by Plaintiff from order entered 11 August 2014 by Judge Ward D. Scott
    in Buncombe County District Court. Heard in the Court of Appeals 27 August 2015.
    Mary Elizabeth Arrowood for the Plaintiff-Appellant.
    Siemens Family Law Group, by Ana M. Prendergast and Jim Siemens, for the
    Defendant-Appellee.
    DILLON, Judge.
    Jeanne Lund (“Wife”) appeals from an equitable distribution order. For the
    following reasons, we affirm in part and reverse and remand in part.
    I. Background
    Wife and Robert Lund (“Husband”) were married on 14 February 1997 and
    separated on 5 January 2013. Following their separation, Wife sued Husband for
    equitable distribution, seeking an unequal distribution of the marital estate.
    Husband answered and counterclaimed for equitable distribution, seeking an equal
    distribution of the marital estate. On 11 August 2014, following a four-day trial, the
    LUND V. LUND
    Opinion of the Court
    trial court entered an equitable distribution order, dividing the marital estate
    substantially equally. Wife timely appealed.
    II. Analysis
    Wife argues on appeal that the trial court erred in (1) classifying, valuing, and
    distributing certain marital property, including her pension benefits and three debts
    incurred during the marriage; (2) classifying, valuing, and distributing certain
    divisible property; and (3) determining that an equal distribution of the marital
    property was equitable.
    “In applying our equitable distribution statutes, the trial court must follow a
    three-step procedure, (1) classification, (2) []valuation and (3) distribution.” Seifert v.
    Seifert, 
    82 N.C. App. 329
    , 334, 
    346 S.E.2d 504
    , 506 (1986), aff’d, 
    319 N.C. 367
    , 
    354 S.E.2d 506
    (1987).
    Property may be classified as marital, divisible, or separate. N.C. Gen. Stat.
    §§ 50-20(a), (b) (2014). Only marital or divisible property must be valued and then
    distributed to the parties by the trial court. 
    Id. § 50-20(c).
    Regarding valuation, marital property is valued as of the date of separation,
    see Davis v. Davis, 
    360 N.C. 518
    , 526-27, 
    631 S.E.2d 114
    , 120 (2006), which in the
    present case was 5 January 2013, while divisible property is valued as of the date of
    distribution, see N.C. Gen. Stat. § 50-21(b) (2014), which in the present case was 11
    August 2014.
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    LUND V. LUND
    Opinion of the Court
    Once the marital and divisible property is appropriately valued, the trial court
    is to distribute this property equitably. N.C. Gen. Stat. § 50-20(a) (2014).
    A. Marital Property
    Wife argues that the trial court erred in its handling of certain marital
    property and marital debt. We address each argument in turn.
    1. State Pension
    Wife is employed by the State of North Carolina where she has earned and
    continues to earn compensation in the form of future pension benefits.
    In classifying a pension, it must be remembered that any compensation earned
    by a spouse during marriage (i.e., before the date of separation) is presumed to be
    marital property. N.C. Gen. Stat. § 50-20(b)(1) (2014). In accordance with this
    general rule, the right to receive pension benefits that are earned during the marriage
    (i.e., before the date of separation) is presumed to be marital property, even though
    the pension benefits are not to be received until well after the date of separation. See
    
    id. (defining “marital
    property” to include “vested and nonvested pension . . . rights”).
    Absent an agreement between the parties, there is only one method under
    North Carolina law by which a vested pension may be valued by the trial court. This
    method involves the five-step process outlined by our Court in Bishop v. Bishop, 
    113 N.C. App. 725
    , 
    440 S.E.2d 591
    (1994). By this process, the “present value” of the
    pension is established as of the date of separation. 
    Id. at 731,
    440 S.E.2d at 595-96.
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    Opinion of the Court
    Absent an agreement between the parties, there are only two methods by
    which a vested pension may be distributed by the trial court, which are codified in
    N.C. Gen. Stat. § 50-20.1(a)(3) and (a)(4). See 
    id. at 731-32,
    440 S.E.2d at 596. The
    first method, referred to in Bishop as “the present value . . . [or] [] immediate offset
    method,” is codified in N.C. Gen. Stat. § 50-20.1(a)(3) and allows the trial court to
    award one hundred percent (100%) of the future pension benefits to the employee-
    spouse and to “offset” this award by awarding a larger percentage of the other marital
    assets to the non-employee spouse. See 
    id. The second
    method, referred to in Bishop
    as “the fixed percentage . . . or [] deferred distribution method,” is codified in N.C.
    Gen. Stat. § 50-20.1(a)(4) and allows the trial court to award the non-employee spouse
    a “fixed percentage” of the marital portion of the pension benefits as they are paid out
    in the future. See 
    id. at 732,
    440 S.E.2d at 596.
    Here, Husband and Wife stipulated to the classification of Wife’s pension
    earned as of the date of separation as being entirely marital, since Wife had no years
    of service with the State prior to the marriage.1 Wife, however, makes several
    arguments concerning the trial court’s valuation and distribution of her pension. For
    the reasons set forth below, we hold that the trial court properly valued and
    distributed Wife’s pension.
    1Of course, when Wife ultimately retires in the future, her pension benefits that will ultimately
    be paid out will not be entirely marital because she will have continued earning these benefits as she
    continues to work after the date of separation.
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    Opinion of the Court
    a. Valuation
    The trial court determined that Wife’s future pension benefits had a present
    value of $199,823 as of the date of separation, largely relying upon the expert opinion
    of a certified public accountant (“CPA”) tendered as an expert by Husband. The
    evidence tended to show and the trial court found that the CPA applied the Bishop
    five-step process to arrive at his opinion of value.      Wife, however, makes two
    arguments attacking the trial court’s valuation of her pension:
    First, Wife argues that the CPA’s opinion was incompetent because the CPA
    relied upon information which was never admitted into evidence and was otherwise
    inadmissible hearsay. We disagree.
    “[T]he trial judge is afforded wide latitude of discretion when making a
    determination about the admissibility of expert testimony.” State v. Bullard, 
    312 N.C. 129
    , 140, 
    322 S.E.2d 370
    , 376 (1984). We review the trial court’s ruling on the
    admissibility of expert testimony for an abuse of discretion. State v. Anderson, 
    322 N.C. 22
    , 28, 
    366 S.E.2d 459
    , 463 (1988).
    In the present case, the information primarily relied upon by the CPA
    consisted of an affidavit prepared by the Retirement Systems Division of the
    Department of State Treasurer, which contains specific data about Wife’s rights to
    her State pension and the amount of her expected benefit (the “State affidavit”).
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    Opinion of the Court
    It is true, as Wife contends, that the State affidavit was never formally offered
    into evidence and was, otherwise, hearsay. It is also true that North Carolina used
    to follow the rule that “an expert witness cannot base his opinion on hearsay evidence
    . . . [or] facts [not] supported by [the] evidence[.]” Cogdill v. North Carolina State
    Highway Comm’n, 
    279 N.C. 313
    , 327, 
    182 S.E.2d 373
    , 381 (1971). However, as our
    Supreme Court has more recently observed, this “general rule has undergone
    significant modification in recent years[.]” State v. Huffstetler, 
    312 N.C. 92
    , 106, 
    322 S.E.2d 110
    , 119 (1984). For instance, Rule 703 of our Rules of Evidence, which was
    adopted in 1983, see 1983 N.C. Sess. Laws 701, § 3, allows “an expert [to] give his
    opinion based on facts not otherwise admissible in evidence provided that the
    information considered by the expert is of the type reasonably relied upon by experts
    in the particular field in forming opinions or inferences on the subject,” see State v.
    Allen, 
    322 N.C. 176
    , 184, 
    367 S.E.2d 626
    , 630 (1988) (emphasis added).
    Here, the CPA testified that the State affidavit is the type of information that
    an expert would rely upon to value a pension, since it contains the data specific to a
    particular employee’s pension needed to apply the five-step process outlined in
    Bishop. Further, the trial court determined that it was proper for the CPA to rely on
    the State affidavit, “pursuant to Rule of Evidence 703.”          In challenging this
    determination, Wife contends that the types of information falling within the ambit
    of Rule 703 include the National Vital Statistics Report published by the U.S.
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    Opinion of the Court
    Department of Health and Human Services. The CPA, however, expressly testified
    that he did rely on the National Vital Statistics Report in determining the life
    expectancy of Wife, which is data that an expert needs to value a pension pursuant
    to Bishop. But the types of information cited by Wife would not contain other data
    an expert would need to make a Bishop evaluation, e.g., specific data about the
    employee-spouse’s earnings, retirement dates which is found in the State affidavit.
    In any event, Wife points to no evidence tending to show that the State affidavit was
    not also a type of information relied upon by experts in the field of pension valuation.
    Wife’s argument is overruled.
    Second, Wife argues that the State affidavit was not reliable because it
    contained data regarding Wife’s pension as of 1 February 2013, and not as of the
    actual date of separation, 5 January 2013. However, we hold that this mere twenty-
    seven (27) day discrepancy goes to weight and not admissibility. See, e.g., Northgate
    Shopping Ctr., Inc. v. State Highway Comm’n, 
    265 N.C. 209
    , 211-12, 
    143 S.E.2d 244
    ,
    245-46 (1965) (stating that evidence of value from a date other than the relevant date
    may still be admissible if the “other” date was not too remote in time); City of Wilson
    v. Hawley, 
    156 N.C. App. 609
    , 615, 
    577 S.E.2d 161
    , 165 (2003) (recognizing that expert
    witnesses “must be given wide latitude in formulating and explaining their opinions
    as to value”). Therefore, the CPA’s opinion of value as of the date of separation was
    not rendered incompetent merely because he relied upon the State affidavit. We note
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    Opinion of the Court
    that the trial court expressly stated in its order that it was valuing the pension “as of
    the date of the parties’ separation,” and not as of the date of the State’s affidavit.
    b. Distribution
    Regarding the distribution of the pension, the trial court awarded Husband ten
    percent (10%) of the marital portion of Wife’s future pension benefit payments,
    calculated as follows:
    10% of the marital portion of [Wife’s] NC state pension,
    said [marital] portion to be determined by coverture
    fraction, the numerator of which is the months of NC state
    employment during marriage and the denominator of
    which is [the] total months of NC state employment, when
    that pension goes into pay status, with the amount to be
    determined by [Wife’s] earnings preceding date of
    separation, as opposed to her last years of employment.
    We hold that this award complies with N.C. Gen. Stat. § 50-20.1. Specifically, the
    pension is a defined benefit plan; and the trial court correctly classified the marital
    portion of Wife’s future pension benefit payments by employing the coverture
    fraction, mandated in N.C. Gen. Stat. § 50-20.1(d). By using the coverture fraction,
    the trial court recognized that a portion of these future benefits will be Wife’s separate
    property, as she will continue working to earn these benefits after the date of
    separation.2 After valuing the pension per Bishop, the trial court distributed the
    2The  numerator of the coverture fraction is the number of years during marriage (i.e., before
    separation) the future benefits were earned, and the denominator is the total number of years the
    benefits were earned. See Seifert v. Seifert, 
    319 N.C. 367
    , 370, 
    354 S.E.2d 506
    , 509 (1987); Bishop v.
    Bishop, 
    113 N.C. App. 725
    , 729-30, 
    440 S.E.2d 591
    , 595 (1994).
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    Opinion of the Court
    marital portion of the pension by awarding Husband a fixed percentage of the marital
    portion of those future benefit payments, which is allowed by N.C. Gen. Stat. § 50-
    20.1(a)(3). Husband, though, was awarded only ten percent (10%) of the marital
    portion of the pension benefits, whereas the trial court determined that a fifty-fifty
    split of the entire marital estate was equitable. The trial court, however, awarded a
    larger share of the other marital assets to Husband as an offset to achieve equity,
    which is allowed by N.C. Gen. Stat. § 50-20.1(a)(4). Therefore, the trial court utilized
    both distribution methods, which we hold was not an abuse of the trial court’s
    discretion in this case.
    Wife argues that the trial court should have used only the fixed percentage
    method in distributing the pension. That is, she argues that the trial court should
    have distributed the marital portion of the pension fifty-fifty and also the other
    marital assets fifty-fifty. She contends that the non-pension assets are preferable
    because her future pension benefits are “speculative” at best. She contends that the
    order allows Husband to receive the marital house, an IRA that she built up during
    marriage, and other “present” assets, which he can currently enjoy, leaving her with
    almost nothing from the marital estate except a hope to receive pension benefits
    sometime in the future. While Wife’s concern is a factor the trial court could have
    considered in distributing the marital estate, we cannot say that the trial court
    abused its discretion in distributing the marital assets in the manner it did. There
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    Opinion of the Court
    is nothing in the statute which requires the trial court to apply the fixed percentage
    method exclusively when the pension makes up a large percentage of the marital
    estate. Therefore, Wife’s argument is overruled.
    Wife further argues that the trial court committed the same error that occurred
    in Seifert v. Seifert, 
    319 N.C. 367
    , 
    354 S.E.2d 506
    (1987).                 Wife’s argument is
    misplaced. In Seifert, the trial court erred because, in awarding the non-employee
    spouse a portion of her husband’s future pension benefits, it did not award her a fixed
    percentage of those future benefits, but rather awarded her a specific dollar amount
    (equal to the present value of her portion of her husband’s pension) to be paid from
    her husband’s future benefits. See 
    Seifert, 82 N.C. App. at 338
    , 346 S.E.2d at 509.
    The Supreme Court recognized that this methodology was error because it amounted
    to a double discounting. 
    Seifert, 319 N.C. at 371
    , 354 S.E.2d at 509-10. Here, though,
    the trial court did not engage in double discounting. It properly determined the
    present value of the pension as of the date of separation as mandated by Bishop, and
    awarded Husband a fixed percentage of Wife’s future benefits.3 Wife’s argument is
    overruled.
    2. Marital Debt
    3The   trial court determined that the pension had a value of $199,823 as of the date of
    separation. The court would have committed the double discounting error that occurred in Seifert if,
    in awarding Husband ten percent (10%) of the pension, it had awarded Husband $19,982.30 (10% of
    the pension value) and had required Husband to wait until Wife began drawing her pension to receive
    this award. However, the trial court avoided this error by awarding Husband this future benefit as a
    fixed percentage (rather than a specific dollar amount).
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    Opinion of the Court
    Wife contests the competency of the evidence to support the trial court’s
    classification of the following debts as marital:         (1) debt related to Husband’s
    construction business in the amount of $5,931.67; (2) tax debt for the 2012 tax year
    of $2,495.00; and (3) credit card debt from a Discover card in the amount of $8,894.15.
    We disagree.
    As to whether property, or by extension, debt, “is marital or separate, the
    findings of the trial court will not be disturbed on appeal if there is competent
    evidence to support the findings.” Loving v. Loving, 
    118 N.C. App. 501
    , 507, 
    455 S.E.2d 885
    , 889 (1995). This is true “despite the existence of evidence to the contrary.”
    Johnson v. Johnson, ___ N.C. App. ___, ___, 
    750 S.E.2d 25
    , 27 (2013). “Competent
    evidence is evidence that a reasonable mind might accept as adequate to support the
    finding.” City of Asheville v. Aly, ___ N.C. App. ___, ___, 
    757 S.E.2d 494
    , 499 (2014).
    Regarding Husband’s construction business debt, Husband testified that he
    operated a construction business as a sole proprietor during the marriage and that,
    as of the date of separation, he owed $5,931.67 to four specific suppliers and
    subcontractors, identifying each creditor by name and the specific amount owed to
    each. The parties stipulated that Husband’s construction business was a marital
    asset. Though there may have been evidence to the contrary, we hold that there was
    sufficient evidence to support the trial court’s finding that Husband’s construction
    business debt was marital.
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    Opinion of the Court
    Regarding the 2012 tax debt, Husband testified that there was owed $2,495.00
    in federal taxes for that year. He testified that he had paid taxes for 2012, but that
    he mistakenly underpaid them.        The parties were not separated until 2013.
    Therefore, we hold that there was competent evidence to support the trial court’s
    finding that the 2012 tax debt was marital.
    Regarding the Discover credit card debt, Husband testified that he and Wife
    used the Discover card to purchase a refrigerator and that the other debt likely arose
    from the construction business, which, as previously stated, both parties stipulated
    was marital. Husband testified that the balance of the Discover card was $8,895.84
    as of a statement date of 20 January 2013. As the parties’ date of separation was 5
    January 2013, we hold that the trial court’s finding of the marital credit card debt
    from the Discover card was supported by competent evidence.
    B. Divisible Property
    Wife makes a number of arguments concerning the trial court’s treatment of
    certain divisible property. N.C. Gen. Stat. § 50-20(b)(4) defines “divisible property”
    to include the following:
    a. [Passive] appreciation and diminution in value of
    marital property and divisible property of the parties
    occurring after the date of separation and prior to the date
    of distribution . . . .
    ...
    c. Passive income from marital property received after the
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    Opinion of the Court
    date of separation . . . .
    d. Passive increases and passive decreases in marital debt
    and financing charges and interest related to marital debt.
    N.C. Gen. Stat. § 50-20(b)(4) (2014).
    1. Increase in Value of Marital Home
    Under N.C. Gen. Stat. § 50-20(b)(4)(a), passive increases or decreases in the
    value of the marital home between the date of separation and the date of distribution
    are considered divisible. Therefore, passive increases in the value of the marital
    home must be distributed by the trial court as divisible property. See 
    id. In the
    present case, the trial court valued the marital home at $267,000.00 as
    of the date of separation and distributed it to Husband. The trial court found that
    neither party presented evidence regarding the value of the marital home as of the
    date of distribution. Therefore, the court concluded that there was no divisible
    property in connection with the marital home as there was no evidence showing that
    there was any increase or decrease in the value of the marital home during the
    relevant time period.
    Wife contends, however, that she did introduce evidence showing that the
    value of the marital home increased to $300,000.00 by the date of distribution.
    Specifically, she testified at the trial (two months before the date of distribution) that
    she believed the marital home was worth $300,000.00. “[W]here the value of real
    property is a factual issue in a case, our Supreme Court has repeatedly held that the
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    Opinion of the Court
    owner’s opinion of value is competent to prove the property’s value.” United Cmty.
    Bank v. Wolfe, ___ N.C. App. ___, ___, 
    775 S.E.2d 677
    , 680 (2015).4 We recognize that
    Wife did not testify whether she believed that the increase in value was “passive” or
    “active” in nature, as only a passive increase would be classified as divisible.
    However, she was not required to do so since any increase (or decrease) in value
    during the relevant time period is presumed to be passive in nature and, therefore,
    divisible property. Wirth v. Wirth, 
    193 N.C. App. 657
    , 661, 
    668 S.E.2d 603
    , 607
    (2008).5 Of course, this presumption is rebuttable. 
    Id. Husband counters
    by arguing that we should read the trial court’s finding that
    “no evidence” was presented to mean that “no competent evidence” was presented by
    either party on the issue. However, such a finding would also have been error, since
    Wife’s testimony was competent. United Cmty. 
    Bank, supra
    .
    We note that a finding by the trial court of “no credible evidence” being
    presented on the issue would not have been error, since the trial court is free to give
    any weight (or no weight) to any evidence presented. See Bodie v. Bodie, 
    221 N.C. 4There
      is an exception to this general rule where “it affirmatively appears that the owner does
    not know the market value of his property[.]” N.C. State Highway Comm’n v. Helderman, 
    285 N.C. 645
    , 652, 
    207 S.E.2d 720
    , 725 (1974). Furthermore, “an owner’s opinion is not competent where it is
    shown that the owner’s opinion is not really his own but is based entirely on the opinion of others.”
    Wolfe, ___ N.C. App. at ___, 775 S.E.2d at 680, n. 2.
    5Wife also contends that the testimony of her expert who valued the home as of eight (8)
    months before the date of distribution was some evidence to establish the home’s value as of the date
    of distribution. However, as we have concluded that Wife’s opinion of value was competent to establish
    the marital home’s value as of the date of distribution, we need not reach whether the expert’s opinion
    was as of a date too remote from the date of distribution to be considered competent, as a matter of
    law.
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    Opinion of the Court
    App. 29, 38, 
    727 S.E.2d 11
    , 18 (2012). Nevertheless, we cannot discern this meaning
    from the present order. For instance, the trial court never makes mention in the
    order of Wife’s testimony concerning her opinion of value, only referencing the
    opinions of the three appraisers who testified; and nothing in the order otherwise
    suggests that the trial court found Wife’s testimony as not being “credible,” much less
    that the court even considered it.
    We thus hold that the trial court erred in finding that “no evidence” was
    presented concerning the value of the marital home as of the date of distribution and
    further in failing to make any findings based on the competent evidence that was
    presented, and we remand for the trial court to make further findings on this issue.
    See Edwards v. Edwards, 
    152 N.C. App. 185
    , 189, 
    566 S.E.2d 847
    , 850 (2002)
    (remanding for findings where there was evidence that marital real property had
    increased in value during the period of separation before the date of distribution and
    the trial court made no findings regarding any change in value). On remand, the trial
    court is free to give any weight (or no weight) to the competent evidence, including
    Wife’s testimony, that was presented. 
    Bodie, supra
    . If, on remand, the trial court
    determines that there is divisible property to be valued and distributed, then the trial
    court may “revise its order distributing the parties’ marital [and divisible] property”
    in order to achieve a division that is equitable. 
    Edwards, 152 N.C. App. at 189
    , 566
    S.E.2d at 850.
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    2. Rental Income from the Marital Home
    Wife argues that the trial court erred in not classifying and awarding certain
    rental income generated by the marital home during the separation. Specifically,
    Wife contends that certain rental payments generated by the marital home during
    the period of separation were divisible property.
    It is true, as Wife argues, that the rental income represents passive income
    from marital property and, therefore, is divisible pursuant to N.C. Gen. Stat. § 50-
    20(d)(4)(c). However, we hold that the trial court did classify the rental income as
    “divisible” property.    Specifically, the trial court determined that “[Husband’s]
    mortgage payments and costs associated with the refinance more than offset any
    divisible credit that might be due to [Wife] by virtue of . . . rental income received by
    [Husband].” (Emphasis added.) Further, the court made a distribution of this rental
    income to Husband, based on its finding that Husband had incurred refinancing costs
    and made mortgage payments.
    3. Post-separation Payments
    Wife argues that the trial court erred in finding certain post-separation
    payments to be divisible property, pointing to the 2013 amendment to the definition
    of “divisible” property in N.C. Gen. Stat. § 50-20. Specifically, N.C. Gen. Stat. § 50-
    20(b)(4) defines divisible property to include, in part, “[p]assive increases and passive
    decreases in marital debt and financing charges and interest related to marital debt.”
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    See N.C. Gen. Stat. § 50-20(b)(4)(d) (2014). We hold that this statutory language
    excludes from the definition of divisible property non-passive increases and decreases
    in marital debt and non-passive increases and decreases in financing charges and
    interest related to marital debt which occurred on or after 1 October 2013, the
    effective date of the 2013 amendment. See Cooke v. Cooke, 
    185 N.C. App. 101
    , 108,
    
    647 S.E.2d 662
    , 667 (2007) (holding that amendment to definition of divisible
    property in N.C. Gen. Stat. § 50-20(b)(4)(d) applies only to post-separation payments
    toward marital debt which occurred after the effective date of the amendment);
    Warren v. Warren, 
    175 N.C. App. 509
    , 517, 
    623 S.E.2d 800
    , 805 (2006) (same).6
    First, Wife contends that the trial court incorrectly classified interest
    payments made by Husband on the Home Depot account and on the Discover Card
    as divisible property. We note that the order does not state when Husband made
    these payments. In any event, we agree with Wife that any payments made by
    Husband after 1 October 2013 should not have been classified as divisible, as they
    constituted active decreases in interest related to marital debt. However, like in
    Cooke, the error “does not necessitate reversal or remand . . . [as] the trial court had
    6The  Cooke and Warren cases applied a 2002 amendment to the definition of the divisible
    property pertaining to post-separation payments towards marital debt. Though the 2013 amendment
    rather than the 2002 amendment applies to the present case, the same reasoning applies; and,
    therefore, we are compelled to follow Cooke and Warren.
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    authority to reimburse [Husband] for [his] post-separation [interest] 
    payments[.]” 185 N.C. App. at 108
    , 647 S.E.2d at 667.7
    Second, Wife contends that the trial court incorrectly characterized a $1,325.00
    mortgage payment by Husband on the marital home in May 2014 as divisible
    property. Wife is correct that this mortgage payment is not divisible since it was
    made after the effective date of the 2013 amendment. However, there is nothing in
    the order to suggest that the trial court treated this mortgage payment as divisible
    property. Rather, the order suggests that the trial court considered the mortgage
    payment as a distributional factor in the award of the rental payments received by
    Husband after the date of separation on the marital home. Wife’s argument is
    overruled.
    Finally, Wife contends that the trial court erred in classifying as divisible two
    tax refunds belonging to her which were applied to the parties’ tax liability for the
    2011 tax year. Specifically, the trial court stated that these tax refunds were Wife’s
    separate property and effectively treated the use of these refunds towards the marital
    tax debt as divisible property, and awarded Wife a credit for the amounts of these
    7We  need not reach whether it would be reversible had the trial court made the opposite error
    by failing to classify the interest payments made before 1 October 2013 as divisible. That is, Wife is
    not contending that the trial court failed to value and distribute certain divisible property.
    Cunningham v. Cunningham, 
    171 N.C. App. 550
    , 556, 
    615 S.E.2d 675
    , 680 (2005) (holding that the
    trial court must “value all marital and divisible property . . . in order to reasonably determine whether
    the distribution ordered is equitable”). Rather, she is contending that the trial court valued and
    distributed certain property that should not have been classified as divisible.
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    Opinion of the Court
    refunds. Assuming, however, that the trial court erred, we hold that any error was
    harmless to Wife, as she benefited as it was she who received the credit.
    C. Equal Distribution
    Finally, Plaintiff argues that the trial court erred in determining that an equal
    distribution of the marital estate was equitable. However, we hold that the trial court
    did not abuse its discretion in this regard.
    Our Supreme Court has stated that the public policy of this State “so strongly
    favor[s] the equal division of marital property that an equal division is made
    mandatory unless the court determines that an equal division is not equitable.” White
    v. White, 
    312 N.C. 770
    , 776, 
    324 S.E.2d 829
    , 832 (1985) (emphasis in original)
    (internal marks omitted). Therefore, “[t]he party seeking an unequal division bears
    the burden of showing, by a preponderance of evidence, that an equal division would
    not be equitable.” Armstrong v. Armstrong, 
    322 N.C. 396
    , 404, 
    368 S.E.2d 595
    , 599
    (1988).
    Wife argues that she offered extensive evidence to support an unequal
    distribution award. We have held that where “evidence is presented from which a
    reasonable finder of fact could determine that an []equal division would be
    inequitable, a trial court is required to consider the factors set forth in [N.C. Gen.
    Stat.] § 50-20(c).” Atkinson v. Chandler, 
    130 N.C. App. 561
    , 566, 
    504 S.E.2d 94
    , 97
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    Opinion of the Court
    (1998). Wife does not make any specific argument concerning any failure by the trial
    court to consider any of the statutory factors.
    Our review is limited to “whether there was a clear abuse of discretion.” 
    White, 312 N.C. at 777
    , 324 S.E.2d at 833. “A trial court may be reversed for abuse of
    discretion only upon a showing that its actions are manifestly unsupported by
    reason.” 
    Id. Accordingly, based
    on these extensive findings and the ample record
    evidence in support of them, notwithstanding Wife’s evidence to the contrary, we hold
    that the trial court did not abuse its discretion in determining that an equal
    distribution was equitable. Therefore, this argument is overruled.
    III. Conclusion
    We reverse the trial court’s finding that neither party introduced evidence of
    the existence of divisible property associated with any passive increase (or decrease)
    in value of the marital home during the period of separation, and we remand for more
    findings on this issue. After considering these issues on remand, the trial court may
    “revise its order distributing the parties’ marital [and divisible] property” in order to
    achieve a division that is equitable. 
    Edwards, 152 N.C. App. at 189
    , 566 S.E.2d at
    850. With respect to Wife’s remaining arguments, we affirm the trial court’s order.
    AFFIRMED IN PART; REVERSED AND REMANDED IN PART.
    Judges HUNTER, JR., and DIETZ concur.
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