Introduction
Divorce is a complex legal process that involves the dissolution of a marital union and the division of assets and debts between the parties involved. In North Dakota, the law provides specific guidelines on how these assets and debts should be divided. However, complications can arise when one spouse attempts to hide assets to avoid their equitable distribution. This article will explore the legal implications of such actions, referencing the North Dakota Century Code and other relevant legal procedures.
Legal Framework for Asset Division in North Dakota
According to North Dakota Century Code 14-05-24, when a divorce is granted, the court is mandated 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 between 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 valuation date and the trial date, the court may adjust the valuation to effect an equitable distribution.
Consequences of Hiding Assets
If a spouse attempts to hide assets during a divorce proceeding, they may face severe legal consequences. According to the provided context, if a spouse disposes of, sells, encumbers, or otherwise dissipates assets during the interim period, that spouse must provide an accounting to the other spouse within 30 days. If they fail to do so, they may be held in contempt of court.
Protection Provisions and Penalties
The North Dakota Rules of Court provide protection provisions during divorce proceedings. These provisions include maintaining all currently available insurance coverage without change in coverage or beneficiary designation, and not removing any minor children from North Dakota without the written consent of the other spouse or order of the court. Violation of these provisions is subject to penalties established in section 14 -07.1-06 and the arrest procedures authorized in section 14 -07.1-11.
Asset and Debt Listing
As part of the divorce proceedings, both parties are required to provide a confidential property and debt listing under Rule 8.3, NDROC. This listing includes real estate, business/farm assets, financial assets, retirement/pension assets, vehicles, household goods, and debts. Any attempt to hide assets or misrepresent the value of assets in this listing can lead to legal consequences.
Remedies for Hidden Assets
If it is discovered that a spouse has hidden assets, the court has the power to adjust the division of property to ensure an equitable distribution. According to North Dakota Century Code 14-05-25.1, a money judgment to secure the division of property is enforceable by contempt proceedings, and exemptions from process are not available. This means that if a spouse is found to have hidden assets, they can be held in contempt of court and the hidden assets can be included in the division of property.
Conclusion
In conclusion, attempting to hide assets during a divorce proceeding in North Dakota is a serious violation of the law and can lead to severe legal consequences, including being held in contempt of court. It is always advisable to be transparent and honest during the divorce process to ensure a fair and equitable division of assets and debts. If you suspect your spouse is hiding assets, it is recommended to seek legal counsel to protect your rights and interests.