Oklahoma is an equitable division state. This means that the court will divide the couple’s property based on what is just and fair. This also means that the couple’s property may not end up simply being split down the middle. Depending on the circumstances, one party could be awarded a higher percentage of the marital assets than the other party.
When it comes to deciding what is fair when it comes to property division, it is important to have a good understanding of the date of separation and passive versus active appreciation.
In order to complete the property division process after divorce, courts need to determine the parties’ official date of separation. These rules vary from state to state. In some states, the date of separation is the date on which one party was notified that their spouse intended to divorce them. Other states pinpoint the date of separation as the date on which a party physically left the couple’s shared residence. Other possibilities include the date the couple signs a separation agreement or the day the divorce papers are filed with a court. Identifying the date of separation is important in determining what property is to be considered marital and what is to be considered separate.
Additionally, understanding property appreciation is important when dividing assets. Passive appreciation occurs when the value of one’s property goes up due to inflation, supply and demand and other forces attributable to the market. On the other hand, active appreciation occurs when the value of one’s property goes up due to the efforts of one or both spouses. Keeping track of how one’s property is being valued is also important when it comes to determining who should get what after a divorce.
As this post shows, the economic side of a divorce is important and can be complex. It behooves any couple going through a divorce to ensure that they have a good understanding of the value of their property so that a fair outcome can be reached.