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

Economic Overview of Oklahoma 

Oklahoma has a population of approximately four million people. The largest metropolitan areas are Oklahoma City and Tulsa, collectively representing over one-third of the state’s population. Oklahoma is home to many High Net Worth (HNW) individuals, including seven billionaires.

In March 2023, the U.S. Bureau of Economic Analysis reported significant growth in real gross domestic product by Oklahoma. Oklahoma ranked third in GDP growth among all other states and the District of Columbia, with a decline in seasonally adjusted unemployment. Personal income increased at 5.9 percent in the third quarter of 2022, placing Oklahoma thirteenth among all states during a period of personal income growth nationwide.

Oklahoma has a diverse economy, with the natural gas and oil industry contributing to over one-fourth of the state’s gross domestic product. Oklahoma’s natural gas reserves are the third largest in the nation, holding eight percent of the country’s total proved reserves. The state remains the sixth-largest crude oil producer in the United States. Cushing, Oklahoma holds approximately fourteen percent of the country’s commercial crude oil storage capacity. Cushing is a major crude oil trading hub that receives supply from several major oil pipelines and is the designated delivery point for the New York Mercantile Exchange crude oil futures contracts. 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.

In April 2023, Oklahoma’s governor entered a Memorandum of Understanding with the UK, establishing a bilateral trade and economic cooperation board. The agreement's stated purpose is to increase trade and development between Oklahoma and the UK. Oklahoma is the fourth state to enter into such an agreement with the UK.

Marriage and Divorce in Oklahoma 

Historically, 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 also decreased. While the state’s divorce rate has decreased from prior years, the rate continues to be among the highest in the country. The decrease in the divorce rate may be a function of more adults choosing not to marry.

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 without a prenuptial agreement. This uncertainty may be compounded by the absence of concrete legal standards for determining the value of businesses and other types of assets. In addition, Oklahoma does not have 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. Absent a contract, state law makes no provision for determining the property interests and rights of unmarried cohabiting persons in a domestic partnership.

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.

In novel child custody cases, state appellate courts consistently affirm that a minor child’s “best interests” supersede all other considerations. Recently, the Oklahoma Supreme Court held that a child’s best interests trump a biological parent’s fundamental parental relationship rights. Although the court broadened the in loco parentis doctrine to protect the rights of non-biological parents in same-sex relationships, it declined to extend the concept to stepparents. As trial courts have wide latitude in determining a child’s best interests under the abuse-of-discretion standard, evaluating the risks and merits of child custody disputes can be very difficult.

Oklahoma law favors antenuptial (premarital) agreements, which are viewed as fostering marriage. While antenuptial agreements may be set aside due to fraud, duress, coercion, or overreaching, courts are quite reluctant to set aside such agreements except in extremely rare circumstances where fraud or misrepresentation is proven by clear and convincing evidence. Oklahoma’s favorable treatment of antenuptial agreements makes them valuable tools for HNW individuals contemplating marriage. A valid antenuptial agreement is one of the only ways to minimize the risks associated with somewhat vague family law concepts and statutes granting broad discretion to trial courts hearing contentious matters.

Careful analysis, planning, and credible, understandable presentation of complex concepts are critical to obtaining a successful outcome in financial cases. An HNW individual contemplating marriage or facing divorce is generally well-advised to include qualified financial professionals on their legal team. Several tax and wealth management professionals in the state are qualified to advise HNW individuals with their legal counsel during the negotiation of antenuptial agreements or the negotiation and litigation of contested matrimonial matters.

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. The collaborative law process is an alternative to conventional, public litigation of family law cases. 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 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 continued movement in Oklahoma toward using 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 outcome.