Whether you are considering or amid divorce or just trying to educate yourself, you can quickly discover that Nebraska’s divorce regulations differ from those of other states. Questions like, “Is Nebraska a 50-50 divorce state?” are perfectly normal. While this guide can help you better understand divorce regulations, consulting Omaha, Nebraska, divorce attorneys is wise when seeking divorce information related to your situation.
Equitable Distribution in Nebraska
Some states use equal distribution in divorce decisions. This approach determines the split by designating one-half of all marital assets to each individual. Methods like this do not split houses or vehicles. However, they attempt to leave both parties with an equal monetary-valued share of their assets.
Nebraska operates differently, trying to seek a more just decision-making process. Instead of dividing marital assets in half, Nebraska follows equitable distribution. Courts use this approach to divide assets reasonably, not equally. Several factors can influence the outcome of who receives what, including:
- Financial contributions. Courts factor in income earned and a spouse’s career sacrifices during the marriage. For example, suppose one spouse left work to raise children while the other spouse pursued a professional career. In that case, both spouses’ contributions will hold value instead of simply income.
- Non-monetary contributions. Non-financial contributions matter in Nebraska. Duties like homemaking, childcare, and emotional support have value. Courts can see these aspects as essential to the family’s well-being, meaning they hold significance in the marital estate, regardless of whether they garnered a paycheck.
- Marriage length. Long-term marriages often lead to a more equal asset split. Marriages lasting years before a divorce can have so many financial and non-financial spousal contributions over time that marital aspects become highly intertwined. Unraveling this life can become difficult. Careers, finances, assets, and contributions can blend over time to bring equal splits closer to what a court may deem equitable.
- Each spouse’s needs. Limitations like child custody or health issues can impact a spouse’s ability to maintain a certain standard of living. Property divisions reflect these conditions. For instance, a spouse with a chronic health condition may need greater financial security after the divorce, so a court may factor this in when splitting assets.
Marital Property Versus Separate Property
The main difference between marital and separate property is that the law considers assets acquired after the marriage’s commencement as marital property. Marital property can encompass real estate, vehicles, retirement accounts, investments, household items, and business interest, amongst other assets.
Separate property can describe anything owned before marriage that is not intentionally made marital property during the marriage. Additionally, this property includes gifts or inherited items, which typically remain separate property despite acquisition during marriage. Exceptions to these distinctions can arise and can be avoided.
Commingling Inheritance or Gifts
Usually, assets inherited from a family member or received as a non-spousal gift remain separate property regardless of when you obtain them. However, blending separate funds with marital funds can cause complications. For example, using separate funds to renovate physical property, like a home, can lead to an increased home value becoming marital property.
Separate Property’s Increase in Value
As with the previous example, increased values on separate property can become marital property during the marriage. This distinction occurs when the other spouse contributes financially or non-financially to the individual property’s increase in value.
Suppose one spouse inherits a rental property before marriage. However, the other spouse manages and repairs the property, finds tenants, and increases the property’s value. In that case, a court may determine that the increased value is marital property.
Reaching an Agreement Before the Court Does
If interested, you can avoid a court’s decisions about your marital assets. When spouses agree on property division through a written settlement agreement outside of court, the applicable parties can decide and present the agreement to the court for approval. In this case, you can keep what you want most, and your spouse can do the same. This approach is typically more amicable and can prevent disputes and resentment after divorce proceedings.
FAQs
Q: How Are Assets Split in a Divorce in Nebraska?
A: Assets are split in Nebraska using equitable distribution in a divorce instead of equal distribution, known as a 50/50 split. Surprisingly, most states follow equitable distribution policies when discussing asset division. Nebraska uses several factors to determine a fair division of property, like the length of the marriage, the value of the marital estate, spousal contributions, and the needs of each spouse.
Q: Who Gets What in a Divorce in Nebraska?
A: In Nebraska, who gets what in a divorce comes down to asset division. When possible, spouses have the opportunity to settle their property split outside of the court system. In these cases, it is the couple’s decision who gets what. Decisions made through this method can result in more positive outcomes for both parties.
When individuals cannot agree on property division, the court decides what each spouse receives in the divorce.
Q: How Is a 401k Divided in a Divorce in Nebraska?
A: A court divides a 401k in a divorce in Nebraska using equitable distribution. The court may follow a process like this:
- Marital portion calculation. The marital portion includes contributions made during the marriage timeframe.
- Settlement agreement of court order. Ideally, spouses split the 401k in a settlement agreement. Alternatively, the court will divide the marital portion for you.
- Transferring funds. A Qualified Domestic Relations Order (QDRO) instructs the plan administrator to transfer 401k funds according to divorce-set terms. A skilled attorney or QDRO professional usually creates QDROs.
Q: Is Nebraska an Alimony State?
A: Nebraska is an alimony or spousal support state. Courts award spousal support based on factors like marriage length, income disparity, spousal needs, and ability to pay. Options include temporary, short-term, and permanent spousal support. Permanent support is rare.
There is no set formula for calculating spousal support. However, you can consult an experienced attorney to estimate what you might pay or receive.
In Nebraska, the recipient of spousal support pays taxes on the payments.
Helping You Make Sense of Property Division
While Nebraska’s equitable distribution approach may seem complex, you can understand it with help. To ensure a fair settlement that meets your individual needs, you should consult an experienced Nebraska divorce attorney. The Stange Law Firm’s knowledgeable team can answer any questions you have and guide you through Nebraska divorce law. Contact us today to discuss your unique situation.
