Alaska Property Division | AK Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

When a couple gets divorced, all assets and debt from the marriage must be sorted out by the courts. Legally speaking, the courts must turn the 1 household that existed during the marriage into the 2 separate households of each former spouse. Among the many considerations that must be considered, a universal one is property division, specifically Alaska property division.

No divorcing couple should discount the guidance of a licensed attorney who works in these cases. Property division laws can be complex, vary from state to state and lawyers have the proper training and experience to tell the judge what a divorcing spouse wants or needs from the property division.

Property Division Divorce Laws in Alaska

The purpose of Alaska property division laws is to make sure that marital property is allocated to each spouse equally, generally in a 50-50 split under a presumption that an equal division is the most equitable one. Alaska marital property is divided under the considerations of Alaska Statute §25.24.160(a)(4) but the trial court judge receives great discretion when converting Alaska marital property into separate Alaska divorce property.

Alaska is an equitable distribution state. This means that with regard to Alaska divorce assets, anything the spouses had prior to a marriage usually will not be included in Alaska divorce assets or Alaska divorce property. The only property that comes into the court's distribution is that which is legally classified as property of the marriage subject to Alaska Statute §25.24.160(a)(4).

However, separate & non-marital property may be included in property division if the trial judge feels this is necessary to make each spouse whole after the divorce. This is permitted under Alaska case law.

What is considered Marital and Non-Marital Property?

Marital property consists of joint items acquired during a marriage as well as separate items that are brought into a marriage and converted into marital property. Some examples of marital property are:

Joint checking/savings accounts
Separate property of a spouse that is placed into a joint checking/savings account
Real estate acquired by either spouse
Gifts from one spouse to the other

Non-marital property is property that each spouse had before the marriage or acquired individually without including it into the marital property. Some examples of non-marital property are:

Separate checking/savings accounts created before marriage
Stock certificates owned by one spouse with dividends paid exclusively to that spouse
Separate Inheritances
Any property classified as this under an agreement between the parties

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The final step is the allocation of marital property.

Under Alaska Statute §25.24.160(a)(4), the court considers a number of factors in dividing assets and debt. Some of these are:

The marriage's length and the parties' station in life during the marriage
The parties' age & health
The parties' earning capacity
The parties' circumstances & necessities
The income producing capacity of & the property's value at the time of division

Using statutory factors, judges decide how a marriage's assets should be divided. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equally among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely award $2,500 to each spouse.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount may be divided by each spouse's contribution or may be more balanced if the $1,000 contributor has fewer assets than the $4,000 contributor.
Retirement Plans: Divided based on the duration of the marriage at the time the benefits accrued, looking at the present value of the plan and/or survivor benefits.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would be entitled to 50% of the retirement plan that was acquired during the marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values at the date decided by the court. May be sold or given to a spouse outright.
- Example 1: A car is owned by one spouse. The car may be sold with the proceeds to be given to a poorer spouse or divided 50-50.
- Example 2: A boat has a shared title. The boat may be sold with the proceeds divided 50-50 or the boat may be given to a poorer spouse.
Insurance: Determined based upon each spouse's health, availability of alternate insurance and premium payments from marital income.
- Example 1: One spouse has covered the other under employer provided health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time and/or award money to the ailing spouse to get new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. The ex-spouse would be entitled to a portion of the payment for the premiums as determined by the court.

Settling Disputes in a Divorce Case with Property and Asset Division

If an asset was not included in property division, you may go to the trial court and get the divorce decree re-opened. However, the trial court's determinations won't be changed unless the division was clearly unjust.

Help From an Alaska Property Divorce Lawyer

Retaining an Alaska property divorce lawyer is key to getting the fairest result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

Thinking About Divorce?