The prospects of ending a marriage can create a lot of questions and a certain level of concern for many here in Arkansas and across the nation who are considering or already facing this scenario. If you are one of these individuals, one of your primary worries probably involves the financial aspects of your divorce. Therefore, gaining an understanding of how the division of marital assets works could benefit you both during the proceedings and in your post-divorce future.
Arkansas is an equitable distribution state where a court has the authority to distribute all of a couple’s marital property in what it deems as a fair manner. Because fair doesn’t always mean equal, this can create a large variance in the amount of certain qualifying assets you could be entitled to receive. Below are some of the things a court will take into consideration when making its determinations:
- How much income each spouse makes and what each spouse does for a living
- Each individual’s ability to find adequate employment if needed
- The duration of the marriage
- The age and overall well-being of each spouse
- Potential tax repercussions for the division of certain assets
- Both the direct and indirect contribution of each party to the marital property
Another matter where doing your due diligence could prove critical to your future best interests involves preparations and planning for how to address the highly valued items in your proceedings. Some of the most common of these important marital assets include the following:
- The marital home: There may be several different options for what happens to your marital home, such as you being able to keep the house in exchange for your soon-to-be ex-spouse receiving something of equal value in return, or you could sell the home with the proceeds subsequently becoming eligible for division.
- Real estate properties: If you or your partner purchased any form of real estate during the marriage, it will most likely be part of the division of assets.
- 401(k)s and other retirement accounts: The majority of personal financial accounts and company retirement plans are typically subject to division.
Finally, if you or your partner owns a business, there’s a chance that it could qualify as marital property. With so much at stake and so many different complex matters you could encounter during the financial aspects of your divorce, you owe it to yourself to take advantage of the professional support readily available to you. An experienced family law attorney can carefully guide you through every step of the process, allowing you to better focus on the future and increasing your odds of achieving the best settlement possible.