How is Marital vs. Non-Marital Property determined in a divorce in Nebraska?
In Nebraska, determining whether property is marital or non-marital during a divorce involves a careful process. Understanding this distinction is crucial because it affects how property is divided between the spouses. Heres a simplified explanation of how this process works:
First, the court identifies and classifies the property as either marital or non-marital. Marital property generally includes assets and debts acquired by either spouse during the marriage. This can include income earned, homes purchased, or retirement accounts contributed to during the marriage. Non-marital property, on the other hand, includes assets acquired before the marriage or received as a gift or inheritance by one spouse. However, if non-marital property is mixed or commingled with marital property, it may lose its non-marital status. For example, if one spouse inherits money but deposits it into a joint account used by both spouses, it may be considered marital property. The spouse claiming that an asset is non-marital has the responsibility to prove it.
Next, the court determines the value of the marital property and debts. This step involves assessing the worth of all marital assets, such as real estate, vehicles, bank accounts, and retirement funds, as well as any debts incurred during the marriage. Non-marital property is not included in this valuation unless it has been commingled or its value increased due to the efforts of either spouse during the marriage. For instance, if one spouse owned a business before the marriage but its value grew significantly due to the active involvement of both spouses, the increase in value might be considered marital property.
Finally, the court equitably divides the marital property and debts. In Nebraska, equitable does not necessarily mean equal. Instead, the court aims for a fair division based on several factors, such as the length of the marriage, the contributions of each spouse (both financial and non-financial), and the economic circumstances of each party. For example, if one spouse stayed home to care for children while the other worked, the court may consider this contribution when dividing the property. The court has broad discretion in determining what is fair, and there is no strict formula for dividing marital property.
Its also important to note that some assets may have both marital and non-marital components. For example, if one spouse owned a home before the marriage but the couple used marital funds to pay the mortgage or make improvements, the home may have both marital and non-marital value. In such cases, the court will determine how much of the property is marital and how much is non-marital, often based on the source of the funds or efforts that contributed to its value.
Understanding how marital and non-marital property is determined in Nebraska can help divorcing spouses navigate the process more effectively. Its always advisable to consult with a qualified attorney to ensure your rights and interests are protected.
