There is currently limited flexibility for distributing complexity in a video coding system. While rate-distortion-complexity (RDC) optimization techniques have been proposed for conventional predictive video coding with encoder-side motion estimation, they fail to offer true flexible distribution of complexity between encoder and decoder since the encoder is assumed to have always more computational resources available than the decoder. On the other hand, distributed video coding solutions with decoder-side motion estimation have been proposed, but hardly any RDC optimized systems have been developed.To offer more flexibility for video applications involving multi-tasking or battery-constrained devices, in this paper, we propose a codec combining predictive video coding concepts and techniques from distributed video coding and show the flexibility of this method in distributing complexity. We propose several modes to code frames, and provide complexity analysis illustrating encoder and decoder computational complexity for each mode. Rate distortion results for each mode indicate that the coding efficiency is similar. We describe a method to choose which mode to use for coding each inter frame, taking into account encoder and decoder complexity constraints, and illustrate how complexity is distributed more flexibly.