Division of Assets in a Divorce
In a divorce proceeding in North Dakota, the court is tasked with making an equitable distribution of the property and debts of the parties involved. This includes all types of assets, such as real estate, personal property, and financial investments like stock options. The North Dakota Century Code 14-05-24 provides the legal basis for this division.
Stock Options and Investments
Stock options and other investments are considered marital property and are subject to division during a divorce. The court will determine the value of these assets based on a mutually agreed upon date between the parties. If the parties cannot agree on a valuation date, the court will set the date as sixty days before the initially scheduled trial date (North Dakota Century Code 14-05-24).
If there is a substantial change in the value of an asset, such as stock options or other investments, between the date of valuation and the date of trial, the court may adjust the valuation of that asset as necessary to effect an equitable distribution. The court will make specific findings that another date of valuation is fair and equitable.
Equitable Distribution
Equitable distribution does not necessarily mean equal distribution. The court will consider several factors in determining what is fair, including the duration 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.
In the case of stock options, the court may consider whether the options were granted for past, present, or future services. Options granted for past and present services are typically considered marital property, while options granted for future services may be considered separate property.
Protection of Assets
During the divorce proceedings, neither spouse is allowed to dispose of, sell, encumber, or otherwise dissipate assets without providing an accounting to the other spouse within 30 days. This includes stock options and other investments. Violation of these provisions may result in contempt of court.
Conclusion
In a divorce in North Dakota, stock options and other investments are subject to equitable distribution. The court will determine the value of these assets and divide them in a manner that is fair and equitable. It is important to consult with a legal professional to understand how these laws apply to your specific situation.