Going through a divorce is challenging, and one of the most significant aspects is dividing your property. Working with an experienced family law attorney for property division can help protect your financial future and promote a fair settlement, allowing you to begin your next chapter on solid ground.
At ACW Law, we bring years of dedicated family law experience to help people find clarity during this difficult time. We believe in providing clear, straightforward guidance so you can make informed decisions. Located in Lincoln, Nebraska, our attorneys serve clients throughout Lancaster County, Gage County, Saline County, Seward County, Otoe County, Cass County, and Saunders County. Connect with our team today to explore your options and rights for property division during a divorce.
What Is Considered Marital Property?
When a marriage ends, the court must divide the couple's property. To do this, it first separates assets and debts into two categories: marital property and nonmarital or separate property.
Marital property generally includes all assets and debts acquired by either spouse during the marriage. It generally does not matter whose name is on the title or who made the purchase. If it was obtained from the date of marriage to the date of separation, with some exceptions, it is typically part of the marital estate in Nebraska. Some common examples of marital property include:
The family home and other real estate
Vehicles, boats, and recreational vehicles
Bank accounts and investments
Retirement funds, pensions, and 401(k)s accumulated during the marriage
Furniture and household goods
A business started during the marriage
Credit card debt, mortgages, and personal loans
Nonmarital property, on the other hand, refers to property that belongs to one spouse individually and should not be included in the marital estate. The burden is on the party claiming property should be set aside as nonmarital to prove this. Nonmarital property typically includes:
Assets owned by one spouse before the marriage
Inheritances received by one spouse (even if received during the marriage)
Gifts received by one spouse from a third party
Assets designated as separate in a valid prenuptial agreement
It is important to know that separate property can sometimes become marital property if it is "commingled" with marital assets. For example, if you deposit money from an inheritance into a joint checking account that is used for family expenses, the court might consider that money to be part of the marital estate. Keeping clear records helps distinguish between these two types of property.
How Nebraska Law Guides Property Division
Nebraska is an "equitable distribution" state. This is a common point of confusion. Many people believe it means everything is split exactly 50/50. However, "equitable" means fair, not necessarily equal. The court’s goal is to divide the marital estate in a way that is just and reasonable for both parties with a general guideline that a party will receive one third to two thirds of the marital estate.
While an equal split is often the starting point, a judge may determine a different distribution after considering the circumstances of the marriage and the relationship between the spouses. This method allows for a more personalized outcome that reflects the unique circumstances of your marriage.
How Are Assets and Debts Commonly Divided?
The property division process involves identifying, valuing, and distributing every part of the marital estate. Some assets are more straightforward to divide than others. An experienced family law attorney can help you understand the property division process and what to expect.
The Family Home
The house is often a couple's most valuable asset and can carry significant emotional weight. There are several ways to handle it:
Sell the home: You and your spouse can sell the property and divide the proceeds.
One spouse buys out the other: One spouse keeps the home and refinances or assumes the mortgage, paying the other spouse their share of the equity.
Retirement Accounts
Retirement funds, such as 401(k)s, IRAs, and pensions earned during the marriage, are marital assets. Dividing them requires a special court order called a Qualified Domestic Relations Order (QDRO). A QDRO instructs the plan administrator to distribute a portion of the funds to the non-employee spouse without tax penalties.
Debts and Liabilities
As with assets, all debts acquired during the marriage must be divided equitably. This includes mortgages, car loans, student loans taken out during the marriage and used for living expenses, and credit card balances. The court will assign responsibility for these debts based on the same factors used to divide assets.
Contact Our Family Law Attorneys in Lincoln, Nebraska, Today
At ACW Law, our attorneys are committed to guiding you through your family law matters and advocating for your rights and best interests. Our attorneys are well-versed in Nebraska law and dedicated to providing thorough, compassionate legal support. We focus on a personalized approach, taking the time to understand your unique situation.
Our goal is to achieve fair property and support arrangements that align with state laws and help you move forward with confidence. We provide effective legal services. Contact us today for reliable family law services in Lincoln, Nebraska, and throughout Lancaster County, Gage County, Saline County, Seward County, Otoe County, Cass County, and Saunders County.
