Division of Debts in a Divorce
In a divorce proceeding in North Dakota, the court is tasked with making an equitable distribution of both the property and debts of the parties involved. This includes credit card debt. The division of debts is governed by North Dakota Century Code 14-05-24.
Determining the Valuation Date
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 (North Dakota Century Code 14-05-24).
Secured and Unsecured Debts
Debts in a divorce are categorized as either secured or unsecured. Credit card debt typically falls under unsecured debts. The court will consider various factors when dividing these debts, such as the total amount owing, the monthly payments, when the debt was incurred, and which party is obliged to pay the debt.
Separate and Mutual Rights and Liabilities
According to North Dakota Century Code 14-07-08, the earnings of one spouse are not liable for the debts of the other spouse. However, both spouses are jointly and severally liable for any debts contracted by either for necessary household supplies, medical care, shelter, and the education of their minor children.
Confidentiality of Property and Debt Listing
The property and debt listing of the parties to a divorce, which is filed with the court or included in a judgment for divorce, is a confidential record (North Dakota Century Code 14-05-24.3). However, upon providing written notice to all parties, any person may file a motion for access to the property and debt listing contained in a judgment for divorce.
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 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.
Decree of Separation and Revocation
The decree of separation confers upon the parties all the rights of property, business, and contracts as if unmarried and releases both parties from all obligations of maintenance, except as may be required by the decree (North Dakota Century Code 14-05-28). The court may revoke the decree based on any regulations or restrictions the court imposed in the decree (North Dakota Century Code 14-05-29).
In conclusion, credit card debt, like other marital debts, is subject to equitable distribution in a divorce in North Dakota. The court considers various factors, including the total amount owing, the monthly payments, when the debt was incurred, and which party is obliged to pay the debt. The earnings of one spouse are not liable for the debts of the other spouse, but both spouses are jointly and severally liable for certain types of debts.