Division Of Assets & Debts In An Arkansas Divorce

Division of Property, Assets, and Debts in a Divorce

When navigating a divorce, one of the most critical aspects to consider is how assets, property, and debts are divided. In most cases, if both parties come to an agreement about the division, judges will generally accept it, granting you the freedom to arrange things to your mutual satisfaction.

If an agreement can’t be reached, Arkansas law steps in, typically requiring an equal division of marital property. While the judge has some discretion to deviate from this norm, they are required to provide substantial justification for any unequal division.

It’s important to understand what qualifies as marital property. This is usually any property acquired during the marriage which wasn’t received as a gift or inheritance. Any individually owned inherited assets and property owned prior to the marriage which has remained in your sole name, do not count as marital property.

Autonomy in Asset and Property Division

Indeed, divorcing couples have the power to decide how their assets and property are divided. The autonomy you have in this matter can help make the divorce process less contentious. If you can work together to find common ground, the court will usually honor your decisions.

Common Challenges in Asset and Debt Division

The division of assets and debts often brings about disputes. One common issue is preferences. For example, you might have a home that one party wishes to retain. Here, disagreements often arise about how much the other party should receive in return.

Another frequent challenge involves determining what constitutes marital property. For instance, if you owned a house before marriage but invested a significant amount in improvements during the marriage, there may be disputes over whether some of the equity is considered marital property and subject to division.

When it comes to dividing debts, the law doesn’t require an equal split. The court typically looks at the purpose of the debt and who benefitted from the loan. For instance, if one spouse racked up debt for personal activities, the court might assign that debt to them. General household expenses are usually shared, but if there is a significant disparity in income, the judge may adjust the distribution of debts accordingly. For instance, a lower-earning party may be asked to shoulder less of the debt burden. Each case is unique, and the outcome will depend on your specific circumstances.

For more information on the Division Of Assets & Debts In An AR Divorce, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (501) 984-7567 today.