Divorce can be a complex and emotional process, with many questions to be answered. One common question that often arises is what will happen to joint bank accounts that were held by the couple during the marriage. In Arkansas, the laws are designed to ensure that the division of assets is fair and equitable.
The Basics of Equitable Division
In Arkansas, the courts follow the principle of equitable division, which means that all marital property is divided fairly and equitably between the two parties. This does not always mean that the property will be divided equally, but rather that the court will consider a range of factors to determine what is fair.
Identifying Marital Property
Before assets can be divided, they must be identified as either marital or separate property. Marital property includes any assets that were acquired during the marriage, regardless of how they were titled. Joint bank accounts are typically considered marital property, even if only one spouse contributed to the account.
Valuing Joint Bank Accounts
In order to divide a joint bank account, it must first be valued. This is typically done by determining the balance in the account on the date of separation. It is important to note that any transactions that occurred after the separation date are not considered part of the marital property and are not subject to division.
Division of Joint Bank Accounts
Once the account has been valued, the court will determine how to divide the funds. The judge may order that the funds be split equally, or they may take other factors into consideration when making the decision. For example, if one spouse contributed significantly more to the account than the other, the judge may order a different division of assets to reflect this.
Options for Division
There are several options available for dividing a joint bank account. One option is to simply split the account down the middle, with both spouses receiving an equal share. Another option is for one spouse to keep the account and compensate the other spouse for their share of the funds. This may involve one spouse giving up other assets to make up for the value of the account.
Conclusion
Dividing assets during a divorce can be a challenging process, but understanding how joint bank accounts are handled in Arkansas can make it easier. In general, joint accounts are considered marital property and are subject to equitable division. The court will consider a wide range of factors when determining how to divide the account, including each spouse’s contributions and the value of the account. By working with an experienced divorce attorney, couples can ensure that their assets are divided fairly and equitably.