Nebraska Property Division in Divorce

Nebraska is an equitable distribution state with an important distinction — courts begin with a presumption of equal division of the marital estate. Under Nebraska Revised Statutes (Neb. Rev. Stat.) Section 42-365, the court divides marital property in a manner that is equitable, and the starting point for that determination is a one-half share to each spouse. The court departs from equal division only when the specific facts of the case make an unequal split more reasonable and fair.

This article explains how Nebraska courts classify property, what factors drive the division, how the marital home is treated, and what you need to know to protect your financial interests.

Residency Requirement

Before you can file for divorce in Nebraska, you must meet the state’s residency requirement. Under Neb. Rev. Stat. 42-349, at least one spouse must have been a bona fide resident of Nebraska for at least one year before filing the complaint for dissolution of marriage. There is one exception — if the marriage was solemnized in Nebraska and one of the parties has resided in the state for the entire duration of the marriage, the one-year waiting period does not apply.

Additionally, Nebraska imposes a 60-day waiting period between the filing of the complaint and the entry of the final decree. Under Neb. Rev. Stat. 42-363, no decree of dissolution may be entered until at least 60 days after the respondent has been served with the complaint. This waiting period applies to all divorces, whether contested or uncontested.

Filing Fees

The filing fee for a divorce complaint in Nebraska is $164 statewide. Additional costs may include fees for service of process, certified copies, and any required filings such as motions for temporary orders.

If you cannot afford the filing fee, you may file an application to proceed in forma pauperis. If approved, the court waives or defers the filing fee based on your financial situation.

For a national overview of divorce costs, see our guide on how much divorce costs.

Marital Property vs. Non-Marital Property

The first step in any Nebraska property division case is classification. The court must determine which assets and debts are marital property and which are non-marital (separate) property.

Marital Property

Marital property includes all assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title. Common examples include:

• The family home purchased during the marriage
• Bank accounts, investment accounts, and retirement accounts funded during the marriage
• Business interests established or grown during the marriage
• Debts incurred during the marriage, including mortgages, car loans, and credit cards

Non-Marital Property

Non-marital property is generally excluded from division and remains with the spouse who owns it. Non-marital property includes:

• Assets owned by either spouse before the marriage
• Inheritances received by one spouse, even if received during the marriage — as long as the inheritance was kept separate from marital funds
• Gifts given specifically to one spouse
• Property designated as non-marital in a valid prenuptial or postnuptial agreement

Commingling

Non-marital property can lose its protected status through commingling — mixing separate assets with marital assets until the two become indistinguishable. If you deposit an inheritance into a joint bank account used for household expenses, the inheritance may become marital property. The burden falls on the spouse claiming the separate character to trace the funds back to their separate source.

For a broader overview of how property classification works, see our guide on separate vs. marital property.

The Presumption of Equal Division

Nebraska’s approach to property division is distinctive. Under Neb. Rev. Stat. 42-365, the court begins with a presumption that marital property should be divided equally — a 50/50 split. This presumption is the starting point, not the guaranteed outcome.

The court may depart from equal division when the facts warrant it, but Nebraska appellate courts have consistently held that the presumption is strong. In practice, many Nebraska divorces result in a division close to equal, with the court offsetting individual asset awards to arrive at an overall split near 50/50.

Factors Courts Consider

When deciding how to divide marital property, Nebraska courts consider the factors set out in Neb. Rev. Stat. 42-365. While the statute does not provide a numbered list of factors as some states do, the courts have identified several considerations that are consistently weighed:

Duration of the marriage. Longer marriages tend to result in divisions closer to equal. In shorter marriages, the court may give more weight to what each spouse brought in and return the parties closer to their pre-marital positions.

Contributions of each spouse. The court considers both financial and non-financial contributions. Nebraska courts have repeatedly affirmed that homemaking and childcare are contributions of equal importance to financial earnings.

Circumstances of the parties. The court looks at each spouse’s earning capacity, age, health, education, and job skills. A spouse who sacrificed career advancement may receive a larger share to compensate for reduced earning potential.

Whether the custodial parent should be awarded the marital home. Nebraska courts give particular attention to whether the custodial parent should receive the home. Stability for the children is a significant consideration, even if it creates a somewhat unequal division offset through other assets.

Dissipation of assets. While Nebraska is a no-fault state, the court may consider whether either spouse wasted marital assets through reckless spending, gambling, or transferring property in anticipation of divorce.

Tax consequences. The court considers the tax implications of dividing specific assets — for example, a retirement account has built-in tax liability that reduces its net value compared to a bank account of the same nominal value.

Valuation of Marital Property

Before property can be divided, it must be valued. Nebraska courts use fair market value — the price a willing buyer would pay a willing seller, with both having reasonable knowledge of the relevant facts.

Key valuation issues include:

• Real estate is valued through appraisals. Each spouse may hire an appraiser, and the court determines the value if the appraisals differ.
• Retirement accounts and pensions are valued based on the balance as of a specific date. A Qualified Domestic Relations Order (QDRO) is required to divide most retirement plans.
• Business interests may require a formal business valuation analyzing income, assets, goodwill, and growth potential.
• Personal property is valued at fair market value, not replacement cost or sentimental value.

Nebraska courts generally value property as close to the date of trial as practical.

For more on specific asset types, see our articles on dividing retirement accounts and business valuation in divorce.

Debt Division

Debts incurred during the marriage are generally treated as marital debts and divided equitably along with assets. The court considers who incurred the debt, whether both spouses benefited, and each spouse’s ability to pay going forward.

Importantly, the division of debt in the divorce decree is binding between the spouses but does not bind creditors. If a joint credit card is assigned to one spouse but that spouse stops paying, the creditor can still pursue the other spouse. Refinancing joint debts into individual accounts is an important step during or after the divorce.

For more on dividing debt, see our guide on dividing debt in divorce.

The Marital Home

The marital home is often the most valuable and emotionally significant asset in a Nebraska divorce. Courts consider several options:

• Award the home to one spouse. The recipient typically must buy out the other spouse’s equity through a cash payment, an offset against other assets, or a refinance.
• Award the home to the custodial parent. Nebraska courts regularly award the home to the parent with primary custody, particularly when stability is in the children’s best interest. The buyout may be deferred until the youngest child reaches a specified age.
• Order the home sold. If neither spouse can afford to maintain the home, the court may order it sold and the proceeds divided.

For more on this topic, see our guide on who gets the house in divorce.

What to Do Next

If property division is an issue in your Nebraska divorce, take these steps:

1. Inventory all assets and debts. Create a comprehensive list of everything you and your spouse own and owe. Include real estate, vehicles, bank accounts, retirement accounts, investments, personal property, and all debts.
2. Classify each asset. Determine which assets are marital property and which are non-marital. Gather documentation — pre-marital account statements, inheritance records, gift letters — to support your classification.
3. Obtain valuations. Get appraisals for real estate and business interests. Obtain current statements for financial accounts. Accurate valuations are essential for a fair division.
4. Understand the presumption. Nebraska starts with a presumption of equal division. Know that any argument for an unequal split must be supported by specific facts tied to the statutory factors.
5. Consult a Nebraska family law attorney. Property division involves nuances — commingling, valuation disputes, retirement account division, tax consequences, and the treatment of the marital home. Schedule a free consultation to discuss your situation and protect your financial interests.

For a broader overview of property division, see our guide on property division in divorce.

Frequently Asked Questions

Is Nebraska a 50/50 divorce state?

Nebraska is not strictly a 50/50 state, but it comes close. Courts use equitable distribution with a starting presumption of equal division. The court may depart from a 50/50 split when the specific facts of the case justify it, but significant departures require clear justification under the statutory factors.

What counts as marital property in Nebraska?

Marital property includes all assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title. It includes income earned during the marriage, property purchased with marital funds, and the increase in value of marital assets. Property owned before the marriage, inheritances, and gifts to one spouse are generally non-marital.

How does Nebraska handle the marital home?

The court may award the home to one spouse (often the custodial parent), order a buyout of the other spouse’s equity, or order the home sold with proceeds divided. The children’s stability and ongoing housing costs are also considered.

Can I protect an inheritance from division in a Nebraska divorce?

Yes, if you keep it separate. Inheritances received by one spouse are generally classified as non-marital property and excluded from division — but only if they have not been commingled with marital assets. Depositing inheritance funds into a joint account or using them for marital expenses can convert them to marital property. Keep inherited assets in a separate account under your name only.

How long does a Nebraska divorce take?

Nebraska requires a minimum 60-day waiting period after the respondent is served before the court can enter the final decree. Uncontested cases may be finalized shortly after the waiting period ends. Contested cases involving property disputes, custody disagreements, or complex assets can take six months to over a year.