Marital property is generally subject to division when spouses divorce. Some couples have a smooth process ahead because they already set terms in a prenuptial agreement. Others must reach agreements regarding property division or prepare to take the matter to court in a contested or litigated case.
If a judge must settle disagreements about the distribution of assets and debts, they must take an equitable approach. North Dakota requires an equitable property division process instead of a community property approach that might result in a 50/50 split of most assets.
What does it mean to divide property equitably when spouses divorce?
Judges should focus on a fair outcome
The goal of equitable property division proceedings is to achieve a fair and reasonable outcome. The judge must look at the inventory of marital property and debts. They need to consider factors about the marriage and the spouses.
While the process generally does not involve the consideration of fault specifically, it does look at many other unique details about the marriage. How long the spouses remained married, the health of each spouse and even their custody arrangements for shared children can influence what a judge believes is fair.
Separate property owned by either spouse and earning potential can also impact what seems equitable. Judges consider not just paid contributions to the marital estate but also unpaid labor performed for the family and the standard of living during the marriage. Most of the time, equitable property division proceedings are relatively unpredictable.
Spouses never know exactly what a judge might determine is fair. Learning more about state law and properly inventorying marital property can help people push for fair asset division outcomes when they divorce, whether their situation is being managed via negotiation, mediation, arbitration or litigation.