Asset division in divorce can be a huge headache for most people. Divorce is a challenging and emotionally charged process already without bickering over who gets what. In Oklahoma, understanding the legal framework surrounding asset division is crucial for individuals navigating the divorce journey. Here we will aim to provide a comprehensive guide to the division of assets in an Oklahoma divorce. This can hopefully shed light on key principles, common pitfalls, and strategies to ensure a fair distribution.
Community Property vs. Equitable Distribution
Oklahoma follows the principle of equitable distribution. This means that marital property is divided in a manner that the court deems fair and just, considering various factors. It’s essential to distinguish this approach from community property states, as the division may not necessarily be a 50-50 split. Marital property is any property that is not separate property regardless of who paid for the property or holds title to the property. This includes retirement accounts like a 401(k) account.
Identifying Marital Property
Marital property typically includes division of assets acquired during the marriage, such as real estate, income, investments, and personal belongings. However, exceptions may exist, such as inheritances or gifts specifically designated to one spouse.
When spouses are unable to agree on how to divide a marital asset in a settlement agreement, or there is no prenuptial agreement that makes such a determination, the court will make this decision based on various factors that include the following:
- The asset’s value
- The asset’s use
- The contributions of both spouses during the marriage that increased the asset’s value
- The asset’s effect on the children or other spouse
This is not an all-inclusive list but helps demonstrate that Oklahoma courts have broad discretion in deciding what is fair and equitable when dividing property in an Oklahoma divorce case.
Valuation of Assets
Accurately valuing assets is crucial for a fair division. This may involve appraisals for real estate, businesses, and personal property. Understanding how different assets are valued and factoring in their tax implications can significantly impact the final division. Each party must disclose a list of assets and their fair market value to be reviewed either at mediation, or if mediation fails, at trial.
Factors Influencing Division
Oklahoma courts consider various factors when determining how to divide assets. These may include the duration of the marriage, each spouse’s contribution to the marriage, financial needs and resources of each party, and the overall economic circumstances. Just wanting something doesn’t often equate to receiving it in the divorce.
Business Ownership
If one or both spouses own a business, its valuation and division can be complex. Options may include selling the business and dividing the proceeds or one spouse buying out the other’s share. Professional assistance in business valuation is often necessary. It is very important that if you have a business tangled up in your divorce that you hire an attorney that is going to understand the complexities.
Retirement Accounts and Pension Plans
Dividing retirement accounts and pension plans involves adherence to specific legal procedures, such as obtaining a Qualified Domestic Relations Order (QDRO). This ensures the proper distribution of funds without incurring unnecessary taxes or penalties. The attorney you choose to hire is crucial for these steps, as not filing or misfiling the QDRO can put you in hot water financially.
Asset Division in Divorce
Asset division in divorce is a challenging process, and navigating the complexities of what is and is not marital property requires careful consideration and legal expertise. Seeking the guidance of an experienced Oklahoma family law attorney is paramount to ensuring a fair and equitable resolution. The attorneys at Tulsa Divorce Attorneys and Associates have the experience and knowledge to help you in your divorce and child custody case that involves the division of marital assets. For more information about how our family law attorneys can help you call (539) 302.0303 or contact us online.