How is retirement divided in a divorce?

Division of Retirement in a Divorce in North Dakota

In North Dakota, the division of retirement benefits in a divorce is governed by the North Dakota Century Code. The court is tasked with making an equitable distribution of the property and debts of the parties, which includes retirement benefits. The division of retirement benefits is a complex process that involves a careful analysis of the parties’ financial circumstances, the nature of the retirement benefits, and other relevant factors.

Legal Framework for Division of Retirement Benefits

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. This includes retirement benefits. The valuation date for marital property and debt is either the date mutually agreed upon between the parties or, if the parties do not mutually agree upon a valuation date, sixty days before the initially scheduled trial date.

If there is a substantial change in 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. The court is required to make specific findings that another date of valuation is fair and equitable.

Factors Considered in Division of Retirement Benefits

The court considers several factors when dividing retirement benefits in a divorce. According to North Dakota Century Code 14-05-24.1, these factors include:

  1. The respective ages of the parties, the ability of the parties to earn a living, the effect of the spousal support award, and the time of the application for retirement;
  2. The degree and duration of the economic dependency of the recipient upon the payor during the marriage;
  3. Whether the recipient has foregone, relinquished, or otherwise sacrificed claims, rights, or property in exchange for a more substantial or longer spousal support award;
  4. The duration or amount of spousal support already paid;
  5. The health of the parties at the time of the retirement application;
  6. Assets of the parties at the time of the retirement application;
  7. Sources of income, both earned and unearned, of the parties, including whether the payor spouse intends to continue employment;
  8. The ability of the recipient to have saved adequately for retirement; and
  9. Any other factors the court deems relevant.

Special Considerations for Government Pensions

If one party to the divorce is covered by the civil service retirement system or other government pension system in lieu of social security and is not entitled to receive full social security benefits, the court shall compute what the present value of the social security benefits would have been to the party with the government pension during the covered period and subtract that amount from the value of the government pension in order to determine the government pension’s marital portion (North Dakota Century Code 14-05-24).

In conclusion, the division of retirement benefits in a divorce in North Dakota is a complex process that requires a careful analysis of the parties’ financial circumstances, the nature of the retirement benefits, and other relevant factors. The court’s goal is to achieve an equitable distribution of the marital property and debts, including retirement benefits.