Arkansas Divorce Laws

Divorce is, unfortunately, the end result for many marriages. However, a marriage ending doesn’t need to mean the end of financial security for those involved. If you know the laws in your state and follow them to a tee, you can actually plan your divorce so that you won’t have to rebuild your finances in addition to your personal life. The laws in each state are different, though, so it’s important to do a bit of research and make sure you’re doing everything by the book. A local financial advisor can help you deal with the financial aftermath of a divorce.

How to File for Divorce in Arkansas Eligibility

To get a divorce in Arkansas, one or both spouses must have lived in the state for at least 60 days.

Grounds for Divorce

Arkansas offers both fault and no-fault divorces. No-fault divorces are available only if the couple has been living separately for at least 18 straight months. If a couple spends even one night together during that time, the clock starts over.

For a fault divorce, you can claim the following grounds:

• Impotence

• Conviction of a felony

• Abusing alcohol for at least a year

• Cruel treatment endangering the life of the other spouse

• Causing intolerable humiliation, embarrassment or shame

• Adultery

• Incurable insanity

• Failure to support the other spouse, despite legal obligation

Process to Divorce

If the two parties agree on getting divorced, an uncontested divorce is the least expensive and easiest way to go. To start, one spouse files a divorce complaint in the county where they live. The other spouse is then served a summons, either by agreement or via a local sheriff’s department.

From there, a hearing will be scheduled. Both spouses testify that they want a divorce and submit a settlement agreement, which will be approved by the judge if it is satisfactory. If both parties don’t agree to terms for the divorce, there will be a contested divorce. The filing process is the same, but the path diverges from there.

After the second spouse is served, there will be a discovery process where both sides gather evidence and talk to witnesses. There will likely be a mediation process in which lawyers for both spouses try to come to an agreement around relevant issues like child custody, assets and alimony. If a mediation doesn’t work, there will be a trial where evidence is entered and witnesses are called. After this, the judge makes a ruling on all relevant issues.

How to Split Up Assets During a Divorce in Arkansas

Arkansas defines all property — including cash, cars, pension assests and homes — as marital property if it was acquired during the course of the marriage. The only exception is property obtained via a gift or inheritance. Property acquired before the marriage is considered separate property, along with the earnings on this property and anything purchased with separate property during the marriage.

How to Divide Property in Arkansas After a Divorce

If a judge is dividing property in a divorce, they must divide it on an equitable basis. While this usually results in a near 50/50 split of property, it doesn’t always, and the judge can divide property unequally if they believe that is fair.

There are a multitude of factors the judge can consider when dividing property. These include:

• The length of the marriage

• The age and health of the parties

• Each spouse’s occupation and sources of income

• Vocational skills and employability

• The contributions each party made to the marriage

How to Manage Child Support and Alimony Under Arkansas Divorce Law

Arkansas figures out child support based on a percentage of the income of a parent who doesn’t have custody of the child. The state has a child support calculator you can use to figure out what your child support burden is likely to be if you are not the custodial parent.

There are three types of alimony in Arkansas. The first is temporary alimony, which only lasts for the length of the trial and is designed to keep the status quo while the divorce is finalized. Rehabilitative alimony is ordered after the divorce, but only lasts long enough to give the supported spouse time to get the education or training they need to support themselves. Finally, there is permanent alimony, which lasts until death and is increasingly rare.

There is no formula for determining alimony payments, but the judge can consider factors including income, resources, debts, standard of living during the marriage and the length of the marriage. Generally, around 20% of the supporting spouse’s take home pay is considered a good estimate of an alimony payment, especially if the supported spouse is the custodial parent of any children.

401(k) and IRA and Divorce in Arkansas

The money in a retirement account is considered marital property if it was put into the account during the marriage. This means that the judge may determine that some of the money in the account, which is technically in one spouse’s name, should be transferred to the other spouse.

Normally, taking money out of a 401(k) or another retirement plan would result in a 10% penalty. The judge, though, will issue a qualified domestic relations order (QDRO) which will result in these penalties being waived.

There are a few options for dealing with money transferred out of a 401(k). It can be taken directly as a distribution, which means the spouse getting the money can do whatever they want with it. In this case, the money would be subject to normal income taxes, unless it comes from a Roth account which is filled with post-tax dollars.

A rollover into an individual retirement account (IRA) is also an option. But if you have an IRA, the procedure is slightly different, as there will be no QDRO. Instead, the separation decree must explicitly state what assets are to be taken out and where they are to go. This will allow you to avoid the same penalties that are described above.

Divorce and Estate Planning in Arkansas

Many married couples have an estate plan, but things change once you get divorced. During the marriage, your spouse likely would have gotten all your assets if you were to die. You may want to change that now.

If you want assets to pass along to any minor children, you’ll need to establish a trust for them. You likely also want to change the designated inheritor on any financial holdings you have, including retirement and investment accounts. Finally, check in with your ex-spouse on arrangements for any children you have if you both were to die.

Bottom Line

There are both fault and no-fault divorces in Arkansas. A divorce can be uncontested if the two parties agree on solutions to issues including assets, child custody and alimony. If not, there will be an attempt at a settlement and a trial if needed.

Divorce Financial Planning Tips

• No matter how your marriage is going, a financial advisor can help with your overall financial health. Finding a financial advisor doesn’t have to be hard, though. SmartAsset’s free tool connects you with up to three financial advisors in your area in just five minutes. Get started now.

• If you get divorce, you may end up looking for a new place to live. Use SmartAsset’s mortgage calculator to see what your monthly payments on a new home may end up being.

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