Quick answer: Nebraska is an equitable distribution state, not a community property state. If the parties do not reach a property settlement the court finds conscionable, the court shall order an equitable division of the marital estate, and it includes any pension plans, retirement plans, annuities and other deferred compensation benefits owned by either party, whether vested or not vested (Neb. Rev. Stat. § 42-366(8)). The division is the one that is reasonable, having regard for the circumstances of the parties, the duration of the marriage and the history of each party’s contributions to the marriage, including to the care and education of the children and interruption of careers (§ 42-365). The Nebraska Supreme Court has said the test is reasonableness on the facts, with no rigid mathematical formula; it has also said that for a long marriage in which the parties are the parents of all the children, a “one-third to one-half” rule is of particular significance. A party’s separate property is not divided, but may be taken into account in setting alimony. Property settlement agreements are binding unless unconscionable, and alimony may be ordered in addition to a property settlement award.
What the Nebraska law says
- Equitable division of the marital estate. Pensions and deferred compensation, vested or not, are part of it.
- Reasonableness. The ultimate test is reasonableness as determined by the facts of each case.
- Active and passive appreciation. Appreciation in the marital interest is marital, and using marital funds to pay down the mortgage on separate property creates a proportionate marital interest in it.
How the calculator works
You enter the marital estate and debts each spouse holds and each spouse’s separate property. The calculator adds up the marital estate, starts at an equal share and shows the payment between the spouses; you can move the slider to test a different division. The reasoning is in how Nebraska divides property, the marital estate and pensions and reasonableness, not a formula.
Property and alimony
Property and alimony are considered separately. See the Nebraska alimony calculator.
Property division across Nebraska
The statutes apply in every Nebraska district court, from Omaha, Lincoln, Bellevue, Grand Island, Kearney or Fremont. The IRS lists nine community property states, and Nebraska is not among them.
Frequently asked questions
Is Nebraska a community property state?
No. Nebraska orders an equitable division of the marital estate under Neb. Rev. Stat. 42-365 and 42-366. The IRS lists nine community property states, and Nebraska is not among them.
Does Nebraska split property 50/50 in a divorce?
Not by rule. The division must be reasonable on the facts; the Supreme Court has called the one-third to one-half rule significant in long marriages.
Are pensions divided in Nebraska?
Yes. The marital estate includes pension plans, retirement plans, annuities and other deferred compensation benefits, whether vested or not.
Is an inheritance divided in Nebraska?
A party's separate property is not subject to division, but it may be taken into account in setting alimony.
Can Nebraska spouses make their own settlement?
Yes. A written property settlement agreement binds the court unless it finds it unconscionable.