Handling of Debt Acquired After Separation in North Dakota
In North Dakota, the handling of debt acquired after separation is governed by specific statutes and court rules. The North Dakota Century Code and North Dakota Rules of Court provide the legal framework for this issue.
Division of Property and Debts
According to North Dakota Century Code 14-05-24, when a divorce is granted, the court makes 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 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.
Separate and Mutual Rights and Liabilities of Spouses
North Dakota Century Code 14-07-08 outlines the separate and mutual rights and liabilities of a husband and wife. Notably, the earnings of one spouse are not liable for the debts of the other spouse, and the earnings and accumulations of either spouse while 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, medical care, shelter, and education of their minor children.
Case Management in Divorce Cases
North Dakota Rules of Court Rule 8.3 mandates that 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. This rule implies that debts incurred after this meeting may not be included in the initial division of property and debts.
Postjudgment Proceedings
North Dakota Century Code 14-05-24 also allows the court to redistribute property and debts in a postjudgment proceeding if a party has failed to disclose property and debts as required by rules adopted by the supreme court or if the party fails to comply with the terms of a court order distributing property and debts.
In conclusion, debts acquired after separation in North Dakota are generally considered the separate responsibility of the spouse who incurred them, unless they were contracted for necessary household supplies, medical care, shelter, or the education of minor children. However, the court has the discretion to redistribute property and debts in a postjudgment proceeding if necessary.