How are investment accounts and stocks divided in a divorce?

Division of Property and Debts in North Dakota Divorce

In North Dakota, the division of property and debts in a divorce is governed by the principle of equitable distribution. This principle is outlined in North Dakota Century Code 14-05-24, which states that when a divorce is granted, the court shall make an equitable distribution of the property and debts of the parties. This includes all types of property, including investment accounts and stocks.

Valuation Date for Marital Property

The valuation date for marital property and debt is a crucial factor in the division process. According to North Dakota Century Code 14-05-24, the valuation date is the date mutually agreed upon between the parties. If the parties do not mutually agree upon a valuation date, the valuation date for marital property and debt is 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. This is particularly relevant for investment accounts and stocks, which can fluctuate in value.

Equitable Distribution of Investment Accounts and Stocks

Investment accounts and stocks are considered marital property and are subject to equitable distribution. The court will consider various factors in determining what is equitable, including the duration of the marriage, the age and health of the parties, their earning abilities, and their contributions to the marital estate.

The court will also consider the present value of social security benefits for parties covered by the civil service retirement system or other government pension system. The court will 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 to determine the government pension’s marital portion.

Protection of Assets During Divorce Proceedings

During divorce proceedings, certain protections are in place to prevent the dissipation of assets. According to Rule 8.4 of the North Dakota Rules of Court, neither spouse may dispose of, sell, encumber, or otherwise dissipate any of the parties’ assets, except for necessities of life or for the necessary generation of income or preservation of assets, or for retaining counsel to carry on or to contest the proceeding. If a spouse disposes of, sells, encumbers, or otherwise dissipates assets during the interim period, that spouse shall provide to the other spouse an accounting within 30 days.

Conclusion

In conclusion, the division of investment accounts and stocks in a North Dakota divorce is subject to the principle of equitable distribution. The court will consider various factors in determining what is equitable, and protections are in place to prevent the dissipation of assets during divorce proceedings. As with all legal matters, it is advisable to consult with a qualified attorney to understand the specifics of your situation.