Nebraska divides property fairly in a divorce, though not always equally. Courts consider a range of factors when determining what is fair, and judges are given significant discretion in reaching decisions.
Understanding the divorce process and factors that influence marital property division in Nebraska can help you navigate a divorce with clarity and confidence. Here’s everything you need to know about divorce property division in Nebraska.
What Is Marital Property?
Marital property refers to any assets or debts acquired by either spouse during the marriage, regardless of whose name is on the title or account. Examples include:
- Real estate acquired during the marriage
- Vehicles purchased jointly
- Joint bank accounts
- Retirement accounts earned during the marriage
- Businesses established or grown during the marriage
Marital assets are typically subject to division during a divorce.
What Is Non-Marital Property?
Non-marital property, also called separate property, refers to any assets or debt acquired before the marriage. Examples of non-marital property include:
- Real estate owned before the marriage
- Gifts received by one spouse individually
- Inheritances left to one spouse
- Student loans or personal debt acquired prior to marriage
- Items covered by a valid premarital agreement
However, there are cases where non-marital assets can become marital if they’re commingled or used to benefit the marriage. For example, if an inheritance is deposited into a joint account and used for family expenses, it may lose its separate character and become marital property.
What about your house? Can you lose a home purchased before marriage during your divorce? Possibly, if the home was used as the marital residence or was maintained using marital funds, it might be considered marital property, in whole or in part.
To avoid confusion or disputes, spouses should maintain clear documentation and avoid depositing non-marital assets into joint accounts.
Factors That Impact Property Division in Nebraska
A number of considerations influence how property is divided, including:
- Duration of the marriage
- Each spouse’s earning potential
- Employment history and future prospects
- Child custody arrangements
- The best interests of any children involved
- Contributions (financial and non-financial) to the marriage
- Marital vs. non-marital property classification
Understanding Community Property vs. Equitable Distribution States
Is Nebraska a 50/50 divorce state? No. Nebraska is an equitable distribution state, not a community property state. So, Nebraska courts divide property fairly based on various factors rather than automatically splitting everything down the middle.
In community property states, assets acquired during the marriage are generally split 50/50. Nebraska’s equitable distribution model is more flexible, aiming for a fair—not necessarily equal—division based on individual circumstances.
What Happens When Spouses Disagree on Property Division?
If you and your spouse can’t agree on how to divide property, the court will step in. The judge will evaluate financial records, testimony, and legal arguments before issuing a ruling. This process can be time-consuming and emotionally taxing, which is why many couples try to resolve these issues through mediation or collaborative law when possible.
How to Avoid Court Involvement in Divorce Property Settlements
In many cases, property division doesn’t need to be decided by a judge. Couples can reach agreements outside of court through:
- Prenuptial agreements
- Postnuptial agreements
- Property settlement agreements
These legally binding contracts can outline how assets will be divided, helping reduce stress and costs during a divorce.
How Are Retirement Accounts Divided in a Divorce?
Dividing retirement in divorce depends on when the assets were acquired and the type of account. Typically, retirement funds accrued during the marriage will likely be equitably divided between the parties. For instance:
- 401(k)s are usually divided based on the portion earned during the marriage.
- IRAs may be subject to similar division depending on contributions and growth during the marriage.
- Pensions may require a court order, such as a Qualified Domestic Relations Order (QDRO), for proper division.
Is Alimony Determined with Property Division in a Divorce?
Alimony and property division are separate issues but may influence one another. Courts often consider the financial condition of each spouse when deciding alimony.
This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts.
For help navigating asset and property division in a divorce, hire the compassionate and experienced family law attorneys at Hightower Reff Law. Schedule your free consultation today!
