Property Settlement Agreements

A property settlement agreement ("PSA") details the parties’ agreement with respect to the division of marital personal and real property.  Marital property is property that is acquired by either spouse after the parties after the date of marriage. 

 

Under Arkansas law, the following types of property are not considered marital property:

 

• Property acquired before the date of marriage (“premarital property”);

• Life insurance proceeds;

• Payments made under a deferred compensation plan;

• Property acquired by right of survivorship;

• Retirement account funds acquired prior to the date of marriage;

• Property acquired by a trust distribution;

• Property acquired by inheritance;

• Property by a payable on death or transfer on death arrangement;

• Property excluded by a valid prenuptial agreement of the parties;

• Property acquired in exchange for premarital property;

• Benefits received, or to be received in the future, for a workers’ compensation claim, personal injury claim, or social security claim when the benefits were awarded for a permanent disability or future medical expenses;

• Income from premarital property; and

• The increase in value of premarital property.

 

Equitable Division of Assets & Debts

 

In Arkansas, property division must be equitable. In other words, party is entitled to receive one-half of the value of the marital property. Although it is the exception, not the rule, there are situations in which the court decides that an inequitable division of property is warranted.

 

Real Property

 

If you and your spouse own real property, typically, one of you will retain permanent possession of the marital residence.  If you and your spouse both want to keep the marital residence, the court will decide who shall keep the marital residence or will order that the property be sold.

 

Personal Property

 

Personal property includes all property that is not real property, including financial accounts. Should you and your spouse disagree on the division of personal property, the court will equitably divide the property at the final divorce hearing.

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