Hot Springs Property Division Lawyers
Arkansas attorneys achieve fair distribution of assets for clients
The division of property between spouses can be a highly contentious issue in a divorce. Arkansas is an “equitable distribution” state, which means the court divides marital property in a manner that is fair but not necessarily equal. The court examines various factors, such as the contributions of each spouse to the marriage and to the wealth accrued, to reach a just outcome. A Hot Springs property division lawyer at Schnipper, Britton & Stobaugh can help manage the division process and protect your rightful share.
Marital vs. separate property
A critical part of equitable distribution is the classification of property as either marital or separate. Marital property includes assets acquired during the marriage, regardless of whose name is on the title or who paid for it. This can encompass homes, vehicles, bank accounts, retirement funds, and business interests, among other things. Separate property, on the other hand, refers to assets that a spouse acquired before the marriage, as well as gifts and inheritances received by one spouse during the marriage. Separate property remains the individual owner’s property, provided it hasn’t been commingled with marital assets.
Commingling means merging separate assets into joint accounts or common usage. For example, one spouse inherited a family heirloom during the marriage but then sold it, and the proceeds were used to purchase a home with her spouse. The home would be marital property, subject to division. Another type of commingling is depositing money held prior to marriage into a joint account with one’s spouse.
Factors that influence property division
Several factors can influence how property is equitably distributed in an Arkansas divorce. These include:
- The length of the marriage — Longer marriages may result in a more equal distribution of property, particularly if both spouses made significant contributions to the household.
- The economic circumstances of each spouse — If one spouse is in a stronger financial position, the court may award a larger share of marital property to the other spouse to achieve a more balanced outcome.
- Contributions to the marriage — This includes both financial contributions (such as earned income) and non-financial contributions (like homemaking or raising children).
It’s worth noting that debt is considered property, so if one spouse has run up the lion’s share of the debt, a court can assign responsibility to that spouse.
How complex, high-value property is divided
The division of real estate investments, businesses or retirement accounts can be significantly more intricate than for ordinary assets. Professional appraisers or accountants might need to determine their fair market value. For business assets, evaluation must include tangible assets (like equipment or property) and intangible assets (such as goodwill or brand value).
In some cases, high-value property can be divided by awarding one spouse the asset while compensating the other spouse with property or alimony payments. This approach is usually preferable to liquifying assets.
Strategies for protecting your assets
Protection of assets from equitable distribution requires preplanning. A prenuptial agreement executed before marriage can direct how to divide property in the event of a divorce. During marriage, you must maintain clear records of separate property. A spouse, who can prove by receipts, bank statements or titles that property is separate may be able to retain those assets. A Hot Springs divorce attorney with extensive experience in Arkansas property division can help you retain what you consider rightfully yours.
Contact our Hot Springs divorce lawyers to discuss property division
Schnipper, Britton & Stobaugh provides trustworthy representation for property division during an Arkansas divorce. To schedule an appointment, call use at 501-762-0887 or contact our office online.