In Oklahoma the courts generally accept a fair and reasonable property division the parties agree to, but if the parties cannot agree, the property is divided by the District Court within the Judgment of Divorce.

The spouses can negotiate with each other, and the court accepts a written separation agreement, as approved by both spouses.

An equitable distribution state, Oklahoma uses the dual classification model, and the appreciation of separate property is separate. When spouses are unable to reach a settlement, the Court of Common Pleas distributes the marital assets between the two parties in an equitable fashion. Equitable does not mean equal, or even half, but rather what is deemed by the District Court to be fair.

When the parties are unable to reach a settlement, the District Court assigns a monetary value to the marital property and debt and distributes the marital assets.

The court decides whats just and reasonable based on the complete picture of how each spouse contributed to the marriage and what each spouse needs to move forward.

The court, subject to a valid antenuptial contract in writing, divides marital property either by an in-kind division or by fair exchange of one asset for another.

According to Oklahoma Statutes - Title 43 - Sections: 121, the court may set apart a portion of the separate estate of a spouse to the other spouse for the support of the children of the marriage where the children resides with that spouse.

The courts involvement in the division assumes that the spouses cannot resolve their property disputes.

In Oklahoma, rather than rely on a rigid set of rules when splitting property, the court enjoys the latitude to consider a variety of factors unique to each marriage. In addition to what is just and reasonable, it considers how each spouse contributed to the marriage (including the contributions of a homemaker) and the conditions each spouse faces alone after the divorce, such as earning potential, medical needs, and childcare costs. The court also reviews the length of the marriage, the health and ages of the spouses, tax consequences, and liabilities.

Debts are among the most common types of property that must be divided at divorce. The court will treat debts the same as any other real, personal, or intangible property. Before dividing a debt, the court will have to characterize it as either marital or separate and then assign responsibility for it based on the same equitable principles applied to distribution of assets.

Before the court can divide property, it needs to know which property belongs to the marriage, which belongs to the spouses separately, and how much there is of each. Generally, marital property is all property acquired or earned during the marriage, regardless of what the title says. Separate property is property a spouse owned before marriage, including gifts and inheritances received during marriage. There are circumstances, however, when an increase in the value of separate property is characterized as marital property.

For example, if a couple upgrades a cabin that one of them owned before the marriage, the increase in value is marital property because it comes from joint efforts during marriage. On the other hand, if one spouse bought an investment property in an up-and-coming neighborhood before marriage and it improves in value during the marriage simply because the rest of the homes in the area do the same, then that increase in value remains separate property.

At divorce, the court divides the marital property. Any separate property remains the property of the spouse who owned it before or during marriage, with some exceptions. If the marriage produced children, the court could give one spouse some of the other spouses separate property to help support the children. The court can award one spouses separate property when there is little marital property, and the other spouse has limited income potential.

First, the court classifies assets and liabilities, property and debt, as marital or separate. Then it assigns a monetary value to the marital property and debt. Finally, it distributes the marital assets between the two parties in an equitable manner.

In Oklahoma as in many jurisdictions, the equity in the marital home is often one of the biggest assets the spouses divide. The equity is the market value of the house, less any debts or liens against it. Equity is established by determining what the current market value of the home is at the time of separation. Once the spouses agree to a current market value, any debts associated with the property (mortgage, taxes, home equity loans, etc.) from are deducted the market value to arrive at the equity to be divided. Normally, making this calculation requires a paid real estate appraisal or a real estate agent can prepare a market analysis for free.

From there, couples choose one of three options to divide the equity:

In Oklahoma vested pensions are marital property. A pension vests when all the requirements to receive the pension have been met. Unvested pensions are also marital property. Until the pension has vested, the person under whom the pension is maintained has only an expectancy of interest in the pension.

Several different methods of valuation are used in determining how much a marital asset is worth, depending upon the asset to be valued and the level of agreement between the parties. Courts generally accept the value when the spouses mutually agree on a value of a particular asset. Experts may be retained by the parties or by the courts to determine the value of marital assets if the parties cannot agree. Such experts may include accountants, real estate or business appraisers, or pension valuators. The use of experts adds to the cost of the divorce.

In Oklahoma the court may include the retirement benefits and plans earned by both spouses as marital assets available for division. Retirement benefits vary greatly but can generally be divided into two groups:

In Oklahoma if spouses share in each others retirement or pension plan, a Qualified Domestic Relations Order must be completed. A QDRO is a written set of instructions that explains to a plan administrator that two parties are dividing pension benefits. The instructions set forth the terms and conditions of the distribution - how much of the benefits are to be paid to each party, when such benefits can be paid, and how such benefits should be paid.