How are debts divided in a divorce?

Division of Debts in a North Dakota Divorce

In North Dakota, the division of debts in a divorce is governed by the principles of equitable distribution, as outlined in North Dakota Century Code 14-05-24. This means that the court seeks to divide the marital debts in a manner that is fair and just, but not necessarily equal. The court takes into consideration a variety of factors, including the length of the marriage, the age and health of the parties, their earning abilities, and the nature and amount of the marital debts.

Equitable Distribution of Debts

According to section 14-05-24 of the North Dakota Century Code, when a divorce is granted, the court is required to make 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.

Classification of Debts

Debts in a divorce are typically classified as either secured or unsecured. Secured debts are those that are backed by an asset, such as a house or car. Unsecured debts, on the other hand, are not backed by any specific assets and include credit card debts and medical bills. The division of these debts is typically outlined in a form similar to the one provided in the context, detailing the creditor, total amount owing, monthly payments, when the debt was incurred, the party obliged, and the date of final payment.

Separate and Mutual Rights and Liabilities

Under North Dakota Century Code 14-07-08, neither spouse is answerable for the acts of the other, and 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. The separate property of each spouse is not liable for the debts of the other spouse, but each is liable for their own debts contracted before or after marriage.

Case Management in Divorce Cases

According to Rule 8.3 of the North Dakota Rules of Court, within 30 days after service of the divorce complaint, the parties and their attorneys must meet to prepare a joint informational statement and a preliminary property and debt listing. This meeting is intended to facilitate the exchange of information and documentary evidence relating to the existence and valuation of assets and liabilities, including debts.

In conclusion, the division of debts in a North Dakota divorce is a complex process that involves the application of the principles of equitable distribution, the classification of debts, and the separate and mutual rights and liabilities of the spouses. It is always advisable to seek legal counsel to navigate this process and ensure a fair and equitable division of debts.