Division of Property in a Divorce
In a divorce proceeding in North Dakota, the court is tasked with making an equitable distribution of the property and debts of the parties involved. This includes all types of property, such as real estate, personal property, and financial assets. Rental property, as a form of real estate, is therefore subject to division in a divorce.
Equitable Distribution
Under North Dakota Century Code 14-05-24, the court is required to make an equitable distribution of the property and debts of the parties. It’s important to note that “equitable” does not necessarily mean “equal”. The court will consider a variety of factors to determine what is fair, including the length of the marriage, the age and health of the parties, their earning abilities, and the nature and value of the property.
Valuation of Property
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 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.
Rental Property
Rental property, like any other marital asset, is subject to division in a divorce. The court will consider the value of the property, the income it generates, and any associated debts or expenses. The court may decide to award the rental property to one spouse, order it to be sold and the proceeds divided, or make other arrangements that it deems fair.
Restraining Provisions
According to Rule 8.4 of the North Dakota Rules of Court, during the divorce proceedings, neither spouse may dispose of, sell, encumber, or otherwise dissipate any of the parties’ assets, including rental property, 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.
Decree of Separation
Under North Dakota Century Code 14-05-28, a decree of separation confers upon the parties all the rights of property, business, and contracts as if unmarried and releases both parties from all obligations of maintenance, except as may be required by the decree. This means that if a decree of separation is in place, each party would have the right to manage their own property, including rental property, independently.
In conclusion, the division of rental property in a divorce in North Dakota is subject to the principles of equitable distribution, the valuation of the property, and the specific circumstances of the case. It is always advisable to consult with a legal professional to understand the potential outcomes in your specific situation.