Marital vs. Separate Property in Arkansas

By the FigureMyTax Editorial Team · How we calculate

In Arkansas, marital property is all property acquired after the marriage except seven categories, including property owned before marriage, gifts, inheritances, property exchanged for them, their increase in value and income, and certain disability benefits. Other property is returned to its owner unless the court divides it equitably and states why.

The statutory definition

Under Ark. Code 9-12-315(b), marital property means all property acquired by either spouse after the marriage, except the seven categories below. Everything else is returned to the party who owned it before the marriage unless the court makes some other equitable division and states its reasons in writing.

What is excluded

1. Property acquired before the marriage or by gift or by reason of the death of another, including life insurance proceeds, deferred compensation payments, an individual retirement account, property acquired by right of survivorship, trust distributions, bequests, inheritances and payable-on-death or transfer-on-death arrangements.
2. Property acquired in exchange for property acquired before the marriage or by gift, bequest, devise or descent.
3. Property acquired by a spouse after a decree of divorce from bed and board.
4. Property excluded by a valid agreement of the parties.
5. The increase in value of property in the first category, or of property acquired in exchange for it.
6. Benefits from a workers’ compensation, personal injury or Social Security claim when they are for any degree of permanent disability or future medical expenses.
7. Income from property owned before the marriage or acquired by gift or by reason of the death of another, or in exchange for it.

How the exclusions work in practice

These illustrate the statute’s wording. Wages earned during the marriage are marital property. A house owned before the wedding is excluded, along with its increase in value and the rent it produces. An inheritance is excluded. A personal injury settlement is excluded to the extent it is for permanent disability or future medical expenses. Mixing separate and marital funds can create classification disputes that depend on the evidence, so keep records.

The court can still divide non-marital property

The statute returns other property to its owner unless the court makes some other division it deems equitable, considering the nine factors, and states its basis and reasons in writing. That makes the exclusions a strong starting point, not an absolute rule.

How to document non-marital property

Keep statements from before the wedding, deeds and closing documents with dates, records of gifts and inheritances, and statements tracing money between accounts. Because the increase in value and income from non-marital property are also excluded, records that show the source of funds are the best evidence that an asset stayed non-marital.

Where this fits in the calculator

The Arkansas property division calculator asks for non-marital property separately from marital property, because the starting point is that non-marital property returns to its owner. The house is covered in the marital home and buyouts.

Frequently asked questions

Official sources

• Ark. Code 9-12-315: division of property

This is general information, not legal advice. It is based on the cited Arkansas statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Arkansas attorney.