How does the court determine the value of marital property?

Valuation of Marital Property in North Dakota Divorce Proceedings

In North Dakota, the valuation of marital property during divorce proceedings is a critical aspect of the equitable distribution process. The court’s determination of the value of marital property is guided by specific statutes and legal procedures.

Statutory Provisions

According to North Dakota Century Code § 14-05-24, when a divorce is granted, the court is required to make an equitable distribution of the property and debts of the parties. The statute provides specific guidelines for the valuation of marital property and debt.

The valuation date for marital property and debt is the date mutually agreed upon by 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 (NDCC § 14-05-24).

Adjustments in Valuation

The court has the authority to adjust the valuation of an asset or debt if there is a substantial change in value between the date of valuation and the date of trial. This adjustment is made as necessary to effect an equitable distribution. The court is required to make specific findings that another date of valuation is fair and equitable (NDCC § 14-05-24).

Factors Considered in Valuation

The court considers several factors in determining the value of marital property. These factors include the conduct of the parties during the marriage, the station in life of each party, the circumstances and necessities of each party, the health and physical condition of each party, and the financial circumstances of the parties as shown by the property owned at the time of the divorce. This includes the value of the property at the time of the divorce, the income-producing capacity of the property, and whether the property was acquired before or after the marriage (NDCC § 14-05-24).

Non-Disclosure of Property and Debts

The court has the power to redistribute property and debts in a post-judgment 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 (NDCC § 14-05-25.1).

Conclusion

In conclusion, the court determines the value of marital property in North Dakota divorce proceedings based on a date agreed upon by the parties or, in the absence of such agreement, sixty days before the initially scheduled trial date. The court can adjust this valuation if there is a substantial change in the value of an asset or debt between the valuation date and the trial date. The court also considers various factors related to the parties and the property itself. Non-disclosure of property and debts can lead to post-judgment redistribution of property and debts.