USA OKLAHOMA: An Introduction to Family/Matrimonial: High Net Worth

Introduction to Oklahoma 

Oklahoma has a population of approximately 4 million people. The largest metropolitan areas are Oklahoma City and Tulsa, collectively representing over one-third of the state’s population. Although the median annual household income is approximately USD54,000, Oklahoma is home to many High Net Worth (HNW) individuals, including at least six billionaires. State residents are subject to a combination of taxes, including taxes on property, income, city and state sales taxes, fuel tax, and tolls. Oklahoma has a diverse economy, with the natural gas and oil industry contributing to over one-fourth of the state’s gross domestic product. As the petroleum industry is particularly sensitive to geopolitics and global economic forces, Oklahoma’s immediate economic conditions can be directly impacted by remote international conflicts, political change, and inflationary pressures.

Historically, the state of Oklahoma has had some of the highest divorce rates per 1,000 people in the United States. While national divorce rates have declined over the past few decades, marriage rates have decreased as well, and Oklahoma’s divorce rate continues to be among the highest in the country. Oklahoma’s family law courts, already strained before the pandemic, struggle to manage the surge of filings that followed after restrictions were lifted and people returned to school and work.

Impact of COVID-19 

The pandemic forced the judiciary and legal practitioners to adapt to remote practices, and Oklahoma’s state courts obtained video-conferencing technology that was not prioritized previously. While it remains to be seen how much of the progress will be retained, developments made during COVID-19 have benefited HNW individuals who are immunocompromised, who live remotely, or who travel frequently and work across borders. The ability to appear and participate by video in private mediations and public hearings has generally increased access to legal advice and resources and improved litigation efficiency.

A residual consequence of the pandemic and ongoing economic trends is the dramatic fluctuation in values of assets ranging from traditional brick and mortar to cryptocurrencies. In dissolution of marriage proceedings, state law offers flexibility for determining the proper valuation date. As time passes and prices change, the potential relevance of an ageing appraisal may diminish, depending on the circumstances.

An Uncertain Legal Climate 

In 2021, a change in the law created a legal presumption for shared parenting, or equal access, for parents and their minor children. This statutory update has immediate implications for individuals with children who may be nearing or going through a dissolution of marriage or family break-up. Other legislative developments, including the revision of child support laws, may reflect a modest progressive shift in policy concerning child custody and support provisions of family law.

Oklahoma is an equitable jurisdiction state, meaning marital property and debt do not have to be neatly divided 50/50 in the event of divorce. This can lead to uncertainty for HNW individuals facing property division disputes where there was no prenuptial agreement. This uncertainty may be compounded by the wide latitude enjoyed by trial courts for business and asset valuation and the absence of concrete statutory standards for determining value. In addition, Oklahoma does not have either a statutory calculation or a list of factors for spousal support; instead, courts seek guidance from appellate decisions spanning decades of evolving legislative and social policy. Prenuptial agreements are viewed favourably and can mitigate these risks, but there is a split in the law concerning the validity of postnuptial agreements. Properly done, a prenuptial agreement is one of the most powerful tools for HNW individuals to preempt uncertainty and risk associated with the broad discretion individual judicial officers have when applying state law in court.

A recent United States Supreme Court decision arising from a criminal case had an indirect impact on jurisdiction for Oklahoma family law cases. In McGirt v. Oklahoma, the United States Supreme Court determined that the Creek Nation reservation remains “Indian country,” as defined by federal law. As approximately ten percent of Oklahoma’s population are Native American and Oklahoma is home to 39 tribal nations, the aftermath of the McGirt decision has included increased attention to potential concurrent jurisdiction by state and tribal courts over certain family law matters, as well as a shift in federal and tribal revenues into tribal courts and judicial resources.

Shortly after the McGirt decision, the Oklahoma Court of Criminal Appeals issued decisions authorizing the prosecution of women who abused controlled substances while pregnant under the child neglect statute. Oklahoma also enacted controversial legislation similar to Texas law authorizing a private civil right of action to discourage abortion. After the United States Supreme Court issued its Dobbs v. Jackson Women's Health Organization decision, overturning Roe v. Wade, it seems likely in the context of other trends in Oklahoma jurisprudence that women seeking abortion in Oklahoma may be subject to prosecution.

Alternative Dispute Resolution Options 

Oklahoma law allows courts to refer family law disputes to mediation, and judges often require litigants to attend private mediation at least once before the final trial. An alternative to conventional, public litigation of family law cases is the collaborative law process. Intended to reduce conflict by minimizing the traditional adversarial dynamic, participation in a collaborative process requires agreement by all parties and the engagement of counsel and experts who are specially trained in collaborative law. Arbitration is another alternative to a public trial in state court. Like the collaborative process, all parties must consent to arbitration before their case may be removed from the conventional public adjudication system. There is movement in Oklahoma toward the use of arbitration for contested family law matters, especially for HNW individuals, as arbitration can be more convenient to the participants, lead to faster resolution, and provide a heightened degree of privacy over the issues, evidence, and the outcome.

Bundy Law advises and represents High Net Worth individuals in eastern Oklahoma and western Arkansas in all manner of family law situations, at all stages, including negotiation, trial, and appeal.

For more information, please contact:  

Aaron Bundy, Managing Director, at [email protected]