Retirement Accounts and Divorce in North Dakota
In North Dakota, the division of retirement accounts during a divorce is governed by the principle of equitable distribution. This principle, as outlined in North Dakota Century Code 14-05-24, mandates that the court make a fair, but not necessarily equal, distribution of the marital property and debts, which includes retirement accounts.
Equitable Distribution and Retirement Accounts
Under the equitable distribution principle, the court considers several factors when dividing retirement accounts. These factors include the length of the marriage, the age and health of the parties, their earning abilities, and the contributions of each party to the acquisition of the marital property (North Dakota Century Code 14-05-24).
The court also considers the present value of the retirement accounts. If one party to the divorce is covered by a civil service retirement system or other government pension system in lieu of social security and is not entitled to receive full social security benefits, 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.
Valuation Date of Retirement Accounts
The valuation date for marital property and debt, including retirement accounts, 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 (North Dakota Century Code 14-05-24).
Spousal Support and Retirement
The court also considers the impact of retirement on spousal support. Factors considered include the age of the parties at the time of the application for retirement, the degree and duration of the economic dependency of the recipient upon the payor during the marriage, the duration or amount of spousal support already paid, and the assets of the parties at the time of the retirement application, among others (North Dakota Century Code 14-05-24.2).
Protection of Retirement Accounts
During the divorce proceedings, neither spouse may dispose of, sell, encumber, or otherwise dissipate any of the parties’ assets, including retirement accounts, 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 (Rule 8.4 of the North Dakota Rules of Court). If a spouse violates these provisions, they may be held in contempt of court.
In conclusion, the division of retirement accounts in a divorce in North Dakota is a complex process that involves the application of the principle of equitable distribution, the valuation of the retirement accounts, and the consideration of various factors, including the impact of retirement on spousal support. It is advisable to seek legal counsel to navigate this process.