When a marriage comes to an end, one of the most challenging aspects for couples is dividing their assets. In contrast to “community property” states, where all assets are typically divided equally, Mississippi follows a different approach known as equitable distribution.
At Gregory D. Keenum, PA, we have been guiding local families through complex transitions for nearly 49 years. Understanding how Mississippi law classifies your assets is the first step in protecting your financial future.
Mississippi Is an Equitable Distribution State
Unlike community property states, which divide marital assets equally, Mississippi follows the principle of equitable distribution. This means that courts divide marital property based on the specific circumstances of each case, rather than in a 50/50 split.
The landmark Mississippi Supreme Court case, Ferguson v. Ferguson (639 So. 2d 921, Miss. 1994), established the framework that courts use today when making decisions on equitable distribution. The Court acknowledged that judges should weigh specific factors in their decisions rather than following a rigid formula when determining equitable distribution.
What Counts as Marital Property?
Marital property typically includes all assets and liabilities acquired by either partner during the course of marriage, irrespective of whose name is listed on the title or records. Common examples include:
- Family home and other real estate acquired during the marriage.
- Retirement accounts, pension plans, and 401(k)s accumulated during the marital relationship.
- Vehicles, boats, and personal property acquired either jointly or individually during the course of the marriage.
- Business ventures started or developed during the marital period.
- Bank accounts, investment portfolios, and savings accumulated while married.
- Marital debts, including mortgages, credit card balances, and loans.
What Is Separate Property?
Not all property can be divided. Separate property usually remains with the original owner and includes:
- Assets owned before the marriage.
- Gifts or inheritances received by one spouse, even during the marriage.
- Property explicitly excluded by a valid prenuptial or postnuptial agreement in accordance with Mississippi law.
- Personal injury compensation for pain and suffering, though portions for lost wages or medical expenses may be considered marital.
However, separate property can become mixed with marital assets and lose its protected status. For instance, depositing an inheritance into a joint account used for household expenses can transform it into marital property.
How Mississippi Courts Divide Marital Property
When spouses are unable to reach an agreement, a judge in Mississippi Chancery Court applies the Ferguson factors to determine a fair division. These considerations include:
- The duration of the marriage and each spouse’s contributions
- Each spouse’s earning capacity and employability
- The standard of living established during the marriage
- Dissipation of marital assets (wasteful spending or hiding of assets)
- Tax and economic consequences of the proposed division
- Contributions of a stay-at-home spouse to the household and career of the other
Mississippi courts also take fault into account in some cases. While fault is not required to obtain a divorce on no-fault grounds, marital misconduct, such as adultery or financial abuse, can still affect the outcome of property division.
Why Legal Representation Matters
Mississippi property division disputes can become very complicated, especially when a marriage involves significant assets, business ownership, or retirement funds. Without skilled legal advice, you run the risk of an unfair outcome that can affect your financial security for many years to come.
At Gregory D. Keenum, PA, we have nearly five decades of experience helping clients in Mississippi navigate the complex process of divorce and the division of assets. We take a personalized approach to each case, as we understand that no two marriages or divorces are the same.
Protect Your Assets with Gregory D. Keenum, PA
Navigating the line between marital and separate property can be challenging. Whether you need to protect an inheritance or seek your fair share of a marital estate, our team of experts is here to help. We offer personalized services to ensure that your interests are protected and your rights are respected.Contact us today to schedule a consultation and take the first step towards a secure future.