Premarital Savings and 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 equitable, but not necessarily equal. However, the question of whether premarital savings can be kept by the individual who saved them in a divorce is a complex one and depends on several factors.
Marital vs. Separate Property
In North Dakota, property is classified into two categories: marital property and separate property. According to North Dakota Century Code 14-05-24, marital property is generally all property acquired by either spouse during the marriage, regardless of whose name is on the title. Separate property, on the other hand, includes property owned by one spouse before the marriage, inheritances received by one spouse, gifts received by one spouse from a third party, and payments for pain and suffering in personal injury lawsuits.
In general, separate property is not subject to division in a divorce and remains the property of the spouse who owns it. Therefore, if your premarital savings are classified as separate property, you should be able to keep them in a divorce.
Commingling and Transmutation
However, the classification of property can change during the course of a marriage. If separate property is commingled with marital property, it can become marital property. For example, if premarital savings are deposited into a joint bank account and used for marital expenses, they may be considered marital property. This process is known as transmutation.
Premarital Agreements
A premarital agreement, also known as a prenuptial agreement, can provide additional protection for premarital savings. According to North Dakota Century Code 14-03.2-05, a premarital agreement must be in a record and signed by both parties to be enforceable. This agreement can specify that premarital savings remain separate property in the event of a divorce.
However, the court may refuse to enforce a term of a premarital agreement if it finds that the term was unconscionable at the time of signing or if enforcement would result in substantial hardship for a party due to a material change in circumstances after the agreement was signed (North Dakota Century Code 14-03.2-09).
Conclusion
In conclusion, whether you can keep your premarital savings in a divorce in North Dakota depends on whether the savings are classified as separate property, whether they have been commingled with marital property, and whether there is a premarital agreement in place. It is recommended to consult with a legal professional to understand your rights and options in your specific situation.