Definition of Marital Property
In the context of North Dakota law, marital property refers to any assets or debts that are acquired or incurred by either spouse during the course of the marriage. This definition is derived from the North Dakota Century Code (NDCC) and is used in the division of assets and debts during a divorce proceeding.
Property Classification
According to the North Dakota Century Code, “Property” is defined as anything that may be the subject of ownership, whether real or personal, tangible or intangible, legal or equitable, or any interest therein (NDCC 14-03.2-01(6)). This broad definition encompasses a wide range of assets, including but not limited to real estate, personal property, financial investments, retirement accounts, and business interests.
Marital vs. Separate Property
In North Dakota, property acquired during the marriage is generally considered marital property, regardless of whose name is on the title. This is in line with the state’s equitable distribution laws, which aim to divide marital property fairly, though not necessarily equally, in the event of a divorce (NDCC 14-05-24).
However, not all property owned by a married couple is considered marital property. Separate property, as defined by the North Dakota Century Code, includes assets owned by either spouse prior to the marriage, as well as gifts or inheritances received by one spouse during the marriage (NDCC 14-07-08). Separate property is typically not subject to division in a divorce.
Division of Marital Property
When a divorce is granted, the court is tasked with making an equitable distribution of the property and debts of the parties (NDCC 14-05-24). This involves a thorough evaluation of the couple’s assets and debts, taking into account factors such as the duration of the marriage, the age and health of the parties, their earning abilities, and their contributions to the acquisition of marital property.
The valuation date for marital property and debt is either mutually agreed upon by the parties or, if no agreement is reached, is set as sixty days before the initially scheduled trial date (NDCC 14-05-24). If there is a substantial change in the value of an asset or debt between the date of valuation and the date of trial, the court may adjust the valuation as necessary to effect an equitable distribution.
Impact of Premarital Agreements
A premarital agreement, as defined by the North Dakota Century Code, is an agreement between individuals who intend to marry which affirms, modifies, or waives a marital right or obligation during the marriage or at separation, marital dissolution, death of one of the spouses, or the occurrence or nonoccurrence of any other event (NDCC 14-03.2-01(5)). Such agreements can significantly impact the classification and division of property in a divorce, as they may stipulate specific terms for the distribution of assets and debts.
In conclusion, marital property in North Dakota encompasses a wide range of assets and debts acquired during the marriage. The division of this property in a divorce is subject to equitable distribution laws, as well as any terms outlined in a valid premarital agreement.