Division of Debts in a North Dakota Divorce
In North Dakota, the division of debts in a divorce is governed by the principles of equitable distribution as outlined in North Dakota Century Code 14-05-24. This means that the court seeks to divide the marital debts in a manner that is fair and just, but not necessarily equal.
Equitable Distribution of Debts
According to section 14-05-24 of the North Dakota Century Code, when a divorce is granted, the court is required to make an equitable distribution of the property and debts of the parties. The valuation date for marital property and debt is either the date mutually agreed upon by the parties or, if no agreement is reached, sixty days before the initially scheduled trial date. If there is a substantial change in the value of a debt between the date of valuation and the date of trial, the court may adjust the valuation of that debt as necessary to effect an equitable distribution.
Secured and Unsecured Debts
Debts in a divorce can be categorized as either secured or unsecured. Secured debts are those that are backed by an asset, such as a house or car. Unsecured debts, on the other hand, are not backed by any asset and include debts such as credit card bills and medical bills. The division of these debts is typically outlined in a form similar to the one provided in the context, detailing the creditor, total amount owing, monthly payments, when the debt was incurred, the party obliged, and the date of final payment.
Separate and Mutual Rights and Liabilities
Under North Dakota Century Code 14-07-08, neither the husband nor the wife is answerable for the acts of the other. The earnings of one spouse are not liable for the debts of the other spouse, and the earnings and accumulations of either spouse and of any minor children living with either spouse or in one spouse’s custody, while the husband and wife are living separate from each other, are the separate property of each spouse. However, the husband and wife are jointly and severally liable for any debts contracted by either for necessary household supplies of food, clothing, and fuel, medical care, and for shelter for themselves and family, and for the education of their minor children.
Case Management in Divorce Cases
According to Rule 8.3 of the North Dakota Rules of Court, within 30 days after service of the complaint, the parties and their attorneys must meet in person or by electronic means to prepare a joint informational statement and a preliminary property and debt listing. The parties must exchange information and documentary evidence relating to the existence and valuation of assets and liabilities. This includes current paystubs, employment and income information, tax returns, preliminary pension information, and asset, debt and expense documentation.
In conclusion, the division of debts in a North Dakota divorce is a complex process that involves a thorough examination of the parties’ financial circumstances, the nature of the debts, and the principles of equitable distribution. It is always advisable to seek legal counsel to navigate this process effectively.