Divorce is not just an emotional ending to a marriage. It’s a complex legal process that unwinds the shared life that you’ve built together. One of the most important and often stressful questions is: “What will happen to our assets and debts?” In Mississippi, the answer is found in the legal concept of equitable distribution.
At Gregory D. Keenum, PA, we have been helping clients navigate difficult financial decisions for almost 50 years. Our deep knowledge of Mississippi divorce laws allows us to provide strategic advice that will help protect your financial future.
Mississippi is an “Equitable Distribution” State
Unlike community property states, which mandate a 50/50 split of marital assets and debts, Mississippi follows the doctrine of equitable distribution. This means that the court will divide marital assets and debt in a way that is fair and equitable, based on a careful consideration of the circumstances of each case. The court will not necessarily split assets and debts equally, but rather will try to ensure that both parties receive a fair share.
The process involves three main steps:
- Classifying property as marital or separate
- Valuing all marital assets and debts
- Making a fair division based on legal factors
Marital vs. Separate Property: Knowing the Difference
Marital property is generally defined as all assets acquired and debts incurred by either spouse during the course of marriage. This includes income earned by either spouse, real estate purchased jointly, retirement accounts (401(k) plans, pensions), accumulated during marriage, bank accounts, investments, businesses started during union, vehicles, furniture, and any other personal property acquired during time being married.
Separate property is property that belongs exclusively to one spouse and is typically not divided during a divorce. This includes:
- Property owned by one spouse before the marriage
- Gifts or inheritances received during the marriage that were specifically given to one spouse, as long as they remain separate
- Property explicitly excluded by a prenuptial or postnuptial agreement
It is important to note that separate property can become “mixed” with marital property. For instance, if you inherit money and deposit it into a joint account that is used for household expenses, this money may lose its individual character and become considered marital property. To prove that an asset is separate, clear and convincing evidence is needed.
How Does the Court Decide What is “Equitable”?
Once all property has been classified and valued, the court considers a list of factors outlined in Mississippi Code § 93-5-24 to determine an equitable division. These factors include:
- The contributions of each spouse in acquiring the marital assets, including as a homemaker.
- The market and sentimental value of the assets.
- The financial situation of each spouse at the time of division.
- Health and age of each party.
- Tax implications of the division.
- Need for a primary caregiver to remain in the family home.
- Other relevant factors deemed important by the court.
What Happens to Debt in a Divorce?
Just like assets, debts incurred during a marriage are considered joint debts and are subject to fair distribution. This includes mortgages, car loans, credit card debt, and personal loans. The court will consider who incurred the debt, for what purpose, and each spouse’s ability to repay it.
It is important to understand that, even if a divorce decree orders your spouse to pay a debt, it does not automatically release you from your legal obligation to the creditor. If the debt is in both your names, the creditor may still seek payment from you if your former spouse fails to pay. Therefore, it is essential to take the necessary legal steps to protect yourself from potential liability.
Why Legal Representation Matters
Property division can have a significant impact on your financial security in the years to come. If you don’t seek proper legal advice, you may inadvertently waive your rights to retirement accounts, home equity, or business interests. At Gregory D. Keenum, PA, we provide strategic, personalized representation to help ensure that your assets and debts are divided fairly according to Mississippi law. Our team will work with you to protect your interests and ensure a fair outcome.
Facing a divorce can be an overwhelming experience, but you don’t have to go through it alone. If you have any questions about property division, debt responsibilities, or any other aspects of Mississippi divorce laws, contact our office. Our nearly five decades of experience can provide the guidance and support you need to navigate this process with confidence.