Many divorcing couples mistakenly assume that Mississippi divides marital assets equally, like community property states. However, the reality is that Mississippi is not a community property state and our courts use an “equitable distribution” model to divide assets fairly but not necessarily equally based on each spouse’s unique circumstances. This important distinction is crucial to protecting your financial interests during the divorce process.
Community Property vs. Equitable Distribution: Know the Difference
Only nine US states have community property laws. This means that assets acquired during marriage are automatically divided equally. In Mississippi, the equitable distribution method is used, as established in Ferguson v. Ferguson case. Under this system, judges take into account various factors to determine an equitable division. This could result in a 60/40 split or a 70/30 split, depending on the circumstances of the marriage.
How Mississippi Classifies Property in Divorce
Mississippi law distinguishes between marital and separate property. Marital property includes assets acquired during marriage, regardless of whose name is on the title, such as homes, vehicles, retirement accounts, businesses and even debt accumulated during marriage. Separate property typically includes assets owned before marriage, inheritances received individually and gifts given to one spouse, provided these assets have not been mixed with marital funds.
There is a critical nuance to property classification. For instance, a home purchased prior to marriage can become partially marital property if mortgage payments are made with joint income during the marriage. Additionally, a business owned before marriage can appreciate in value due to contributions from the non-owner spouse, creating a marital interest in that appreciation. These complex situations require careful legal analysis to determine ownership and rights.
The Ferguson Factors: How Courts Determine “Fair” Division
When dividing marital assets in Mississippi, judges apply the “Ferguson factors” to determine an equitable distribution. The courts consider:
- Each spouse’s significant contributions to the acquisition of assets (both financially and non-financially).
- The value of each spouse’s individual estate.
- The parties’ earning capacity and future financial needs.
- The duration of the marriage.
- Tax and economic implications of property division.
- Any dissipation or misuse of marital assets.
- The health and age of both spouses.
Unlike community property states, where the timing of acquisition determines ownership, Mississippi courts consider the totality of circumstances. In such cases, a spouse who sacrifices career advancement to support their partner’s education or business may be awarded a larger share of property, even if their direct financial contribution is lower.
Practical Implications for Your Divorce
The equitable distribution model presents both opportunities and challenges. Without strict 50/50 rules, it is essential for skilled advocates to accurately present their contributions, especially non-financial ones such as childcare, household management, or supporting a spouse’s career. On the other hand, spouses who have hidden assets or engage in financial misconduct may face an unfavorable division of assets.
High-net-worth divorces that involve business interests, professional practices, or complex investments often require the assistance of forensic accountants to help trace commingled funds and determine the value of assets. Retirement accounts that were accumulated during the marriage are typically divided through Qualified Domestic Relations Orders (QDROs), even if they are titled solely in the name of one spouse.
Protect Your Financial Future with Experienced Guidance
Divorce can have a significant impact on your financial situation. In Mississippi, equitable distribution of assets is not determined by automatic formulas, but by careful documentation, strategic planning and an understanding of the judicial process. If you are going through a divorce in Mississippi, it’s important to consult an experienced family lawyer to protect your assets and secure your financial future.
At Gregory D. Keenum, PA, we provide personalized guidance and expertise in navigating property division issues. Founded in 1979, our firm has served the community with integrity and commitment. Our attorneys have decades of experience with Mississippi family law and are dedicated to providing the best representation for our clients. Contact us today to find out how we can assist you through this process with confidence, protecting your financial security.