Treatment of Inheritances in a Divorce in North Dakota
In North Dakota, the division of property during a divorce is governed by the principles of equitable distribution. This means that the court will divide the marital property in a manner that it deems fair and just, which may not necessarily be an equal split. However, not all property owned by the spouses is considered marital property. Certain assets, such as inheritances, may be classified as separate property and thus, may not be subject to division during a divorce.
Classification of Property: Marital vs. Separate
According to North Dakota Century Code 14-05-24, when a divorce is granted, the court shall make an equitable distribution of the property and debts of the parties. The key factor in determining whether an asset is marital or separate property is the timing and manner of its acquisition. Generally, any property acquired by either spouse during the marriage is considered marital property. However, there are exceptions to this rule.
One such exception is for inheritances. Inheritances received by one spouse, either before or during the marriage, are typically considered separate property. This is because they are acquired as a result of the death of a third party, and not as a result of the marital relationship. Therefore, they are not subject to division during a divorce.
Factors Influencing the Treatment of Inheritances
However, the classification of an inheritance as separate property is not absolute. There are certain circumstances under which an inheritance may be considered marital property and thus, subject to division. These include:
Commingling of Assets
If the spouse who received the inheritance mixes it with marital assets, it may lose its status as separate property. For example, if an inherited sum of money is deposited into a joint bank account, it may be considered commingled and thus, become marital property.
Contribution of the Other Spouse
If the non-inheriting spouse significantly contributes to the increase in value of the inherited property, the court may consider the increased value as marital property. For instance, if an inherited property is renovated using marital funds or the non-inheriting spouse’s labor, the increase in the property’s value may be subject to division.
Court’s Discretion in Property Division
The court has broad discretion in determining the division of property in a divorce. According to North Dakota Century Code 14-05-24, the court considers several factors in making this determination, including the conduct of the parties during the marriage, the circumstances and necessities of each party, the health and physical condition of each party, and the financial circumstances of the parties as shown by the property owned at the time of the divorce.
In conclusion, while inheritances are generally considered separate property in North Dakota, the specific circumstances of each case can influence their treatment in a divorce. Therefore, it is advisable to consult with a legal professional to understand how an inheritance may be treated in a divorce under North Dakota law.