How are bank accounts divided in a divorce?

Division of Property and Debts in North Dakota Divorce

In North Dakota, the division of property and debts, including bank accounts, during a divorce is governed by the North Dakota Century Code section 14-05-24. This statute mandates that the court make an equitable distribution of the property and debts of the parties involved in a divorce.

Equitable Distribution

Equitable distribution does not necessarily mean an equal 50/50 split. Instead, it refers to a fair distribution based on various factors such as the length of the marriage, the age and health of the parties, their earning abilities, and the contribution of each party to the acquisition of the marital property.

Valuation Date

The valuation date for marital property and debt, including bank accounts, is the date mutually agreed upon between the parties. If the parties do not mutually agree upon a valuation date, the valuation date is sixty days before the initially scheduled trial date (North Dakota Century Code section 14-05-24).

Changes in Value

If there is a substantial change in value of an asset or debt between the date of valuation and the date of trial, the court may adjust the valuation of that asset or debt as necessary to effect an equitable distribution (North Dakota Century Code section 14-05-24).

Restraining Provisions

According to Rule 8.4 of the North Dakota Rules of Court, a summons in a divorce or separation action must include certain restraining provisions. These provisions prevent either spouse from disposing of, selling, encumbering, or otherwise dissipating any of the parties’ assets, except for necessities of life or for the necessary generation of income or preservation of assets, or for retaining counsel to carry on or to contest the proceeding. If a spouse disposes of, sells, encumbers, or otherwise dissipates assets during the interim period, that spouse shall provide to the other spouse an accounting within 30 days.

Separate and Mutual Rights and Liabilities

Under North Dakota Century Code section 14-07-08, 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.

Case Management

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.

In conclusion, the division of bank accounts in a North Dakota divorce is a complex process that involves equitable distribution based on a variety of factors. It is subject to various legal provisions and court rules, and it requires careful management and documentation. It is always advisable to seek legal counsel when dealing with such matters.