How Property Division Works in High-Asset Oklahoma City Divorces

How property division works in high-asset Oklahoma City divorces often differs significantly from standard marital dissolution cases. Executives, business owners, physicians, and families with trusts add another level of complexity to the financial picture.

Oklahoma is an equitable distribution state, and determining marital vs separate property issues may involve forensic-level financial analysis. For those with considerable assets, proper valuation and planning are critical, particularly when dealing with businesses, investments, and retirement funds.

Hire a Property Division Lawyer

Attorney Aaron Bundy and the rest of the team at Bundy Law help high-net-worth clients navigate the complex divorce process in Oklahoma. A fellow of the International Academy of Family Lawyers and the only fellow in Oklahoma, Bundy is nationally recognized for his work and is well-versed in handling sophisticated property division issues that come up in divorce.

Our firm’s leadership is involved with the American Academy of Matrimonial Lawyers and has experience with international and high-net-worth divorces. Clients can count on our Oklahoma City family lawyers‘ guidance in cases involving businesses, trusts, executive compensation, and other complex assets.

Marital vs. Separate Property Under Oklahoma Law

In high-asset Oklahoma City divorces, the first step in property division is determining what is considered marital property versus separate property. Per 43 O.S. § 121, Oklahoma courts are required to make a just and reasonable property division of any property acquired by the spouses jointly during the marriage and must confirm each spouse’s separate property.

Property owned before marriage, inheritances, and some gifts may be separate unless commingled. With more complex estates, it may be necessary to review financial records to see if separate funds were deposited into joint accounts or if they were used to improve joint assets.

Valuing Closely Held Businesses and Professional Practices

Business ownership often comprises one of the most valuable assets in a high-net-worth divorce. If one spouse owns a closely held company, partnership interest, or professional practice, the Oklahoma Courts may order a formal valuation. Financial professionals may analyze revenue streams, tangible assets, enterprise goodwill, and market comparables.

According to the U.S. Small Business Administration, small businesses constitute 99.4% of the companies operating in Oklahoma. This shows how frequently privately-owned businesses become part of a marital estate. An accurate valuation may have a direct impact on settlement structure, liquidity concerns, and whether offsetting assets are available.

Dividing Executive Compensation and Complex Financial Assets

Divorces involving high assets in Oklahoma City often also involve executive compensation, including stock options and restricted stock units, as well as deferred and bonus compensation. Many factors are considered when determining what is classified as compensation, including when the compensation was earned, whether it vested during the marriage, and how it is connected to the marital contributions with regard to future payouts.

As per the U.S. Census Bureau, the median income for households in Oklahoma is over $60,000 annually. When it comes to higher-level executive positions, however, that compensation can be significantly higher than the average for the state, resulting in a number of questions. Documentation and professional review can be essential in these instances.

Trust Interests, Family Wealth, and Asset Protection Structures

In some high-asset divorces, parties may also have trust interests or inherited wealth. Inherited wealth and inheritances in Oklahoma are generally considered separate property, unless marital funds were used to improve or commingle them with marital property.

Beneficial interests in irrevocable trusts are not themselves divisible, but the distributions paid from such trusts during marriage can be considered in the equitable division of the parties’ estate or in making an award of support.

The court will also consider the extent to which a spouse managed the trust’s holdings, plus whether the assets were employed to support the marriage. Despite asset protection measures, the divorce court retains the authority to examine those assets.

FAQs

Does Oklahoma Require an Equal 50/50 Division of Assets?

Oklahoma has an equitable distribution system, and there is no automatic right to a 50/50 division of marital property. The property is distributed fairly and reasonably under the circumstances as determined by the judge.

Factors that might be considered include the length of the marriage, the contributions of the spouses, and the financial condition of each. This does not necessarily mean an equal division and is often not the result in a high-asset divorce with complex financial assets.

What Is the Divorce Rate in Oklahoma?

The Centers for Disease Control and Prevention lists Oklahoma’s divorce rate at about 3.3 divorces per 1,000 people. With so many divorces happening annually, Oklahoma courts see many that involve the division of substantial marital estates. High-asset property division is a small portion of the total filings, but it usually involves a higher degree of financial analysis.

Can Prenuptial Agreements Affect Property Division in Oklahoma?

An effective prenuptial agreement can change the way property is divided in an Oklahoma divorce. Oklahoma courts will typically enforce any valid and properly executed agreement that was entered voluntarily by the parties with full financial disclosure.

In the case of high-asset marriages, prenuptial agreements often outline business ownership, trusts, inheritance, or anticipated future income. If challenged, the court could potentially review enforceability prior to an equitable distribution analysis. Contact an Oklahoma City prenuptial agreements lawyer for more info.

How Are Debts Divided in High-Asset Oklahoma Divorces?

Division of debt is a component of the overall analysis of equitable distribution in Oklahoma. The courts look at the purpose of the incurred liabilities and the parties to benefit from the obligation. In high-asset cases, debt can arise from business loans, investment leverage, tax liens, or lines of credit secured by complex financial instruments. The division of liabilities can materially affect the net distribution of property.

Contact an Oklahoma City Property Division Lawyer

Determining how property division works in high-asset Oklahoma City divorces requires accurate classification and valuation and strategic planning. The division of significant assets is often intricate and challenging, calling for seasoned guidance and careful execution.

At Bundy Law, we represent executives, business owners, and professionals in high-stakes property division disputes. Contact our office to schedule a consultation. Together, we can review Oklahoma’s equitable distribution framework and how it may apply to your financial situation. Hire a property division lawyer in Oklahoma City today.