Property Distribution

Question 1

2 options for property distribution in a divorce

Answer 1

1. division of property order

2. property settlement agreement

Question 2

division of property order

Answer 2

a hearing in front of a judge; the judge determines how property is divided

Question 3

property settlement agreement

Answer 3

parties come to an agreement and present it to the judge @ the time of granting a divorce

Question 4

marital property

Answer 4

all property acquired AFTER marriage (using marital funds)

Question 5

nonmarital property

Answer 5

all property acquired BEFOR marriage or by gift or by reason of death (will)

Question 6

Judges considerations when splitting property (8)

Answer 6

1. length of marriage
2. age, health, and station of life
3. occupation (earning capacity)
4. amount and sources of income
5. vocational kills
6. estate, liability, and needs of each party
7. needs of each spouse and their opportunity for further acquisition of capital assets and income
8. the spouse’s contributions to the acquisition, preservation, or appreciation of marital property, including services as a homemaker
9. federal income tax consequences of the division of property

Question 7

if a judge deviates from 1/2 split…

Answer 7

…then the judge must draft an order stating its reason for not dividing the marital property equally 1/2

Question 8

if the property is not conducive to splitting…

Answer 8

…the court will issue a sale on the court house step.

The proceeds will then be split between the parties

Question 9

stocks & bonds are spit how?

Answer 9

easily distributed normally 1/2 of the fair market value

Question 10

property settlement agreement

Answer 10

• is contractual
• not subject to court intervention; however, a spouse’s agreement to relinquish all rights to property, if made for a wholly inadequate consideration, will be set aside for that account
• can NOT detrimentally affect child support obligations

Question 11

Arkansas is a what state? for property distribution?

Answer 11

Arkansas is an equitable distribution state; the court distributes “one-half (1/2) to each party unless the court finds such a division to be inequitable.”

Question 12

when does marital property stop accumulating (after separation? after divorce?)

Answer 12

marital property accumulates until the day the divorce is granted, even when the couple has lived apart for some time, with or without alimony, and whether or not one spouse is at fault

Question 13

3 three options to divide the equity of the Marital Home

Answer 13

1. The spouses sell the home and divide the proceeds.
2. One of the parties may refinance the home and “buy out” the other party.
3. One spouse (usually the custodial parent) remains in the home with the exclusive use and possession for a certain period of time (for example, until the youngest child graduates from high school), then either buys out the other spouse or sells the home and divides the proceeds.

Question 14

QDRO

Answer 14

Qualified Domestic Relations Order: a written set of instructions that explains to a plan administrator that two parties are dividing pension benefits. The instructions set forth the terms and conditions of the distribution - how much, when the benefits can be paid, how the benefits should be paid, etc.