OKLAHOMA: An introduction

Economic Overview of Oklahoma

Oklahoma’s population is slightly over 4 million people, with nearly 2 million of them representing the state’s labor force. The state is home to many High Net Worth (HNW) individuals, including eight billionaires. The largest metropolitan areas are Oklahoma City and Tulsa, comprising over one-third of the state’s population. Through mid-2024, the state’s unemployment rate remains low, well beneath the long-term average. Oklahoma is recently in the top ten of U.S. states in economic growth, with gross domestic product exceeding 6%, while having the lowest cost of living in the entire Southwest region. For example, real estate sales prices are over 70% lower than national median sale prices. This positive economic data reflects an ongoing commitment by the government to make the state more business friendly. In 2023, Oklahoma implemented an “Eight-Year Construction Work Plan” with USD9 billion earmarked for highway and other infrastructure upgrades.

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 8% 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 turmoil, and inflationary pressures. 

Marriage and Divorce in Oklahoma

Among U.S. states, Oklahoma consistently has some of the highest divorce rates per 1,000 people. While divorce rates have declined over the past few years, marriage rates have also decreased. Although 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. Unless there is a prenuptial agreement, premarital, separate property may have a divisible marital component if it increased in value due to the effort of either spouse during the marriage. This can lead to uncertainty for HNW individuals involved in property division disputes with no 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. Oklahoma’s statutes include a formulaic calculation for child support, and case law supplements the child support formula for HNW individuals with incomes exceeding the capacity of the child support calculator. However, Oklahoma does not have a statutory guide or list of factors for spousal support; instead, courts seek guidance from appellate decisions spanning decades of evolving legislative and social policy. Finally, 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 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 challenging.

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.

The Courts

Oklahoma’s favorable economic trends have not impacted its judicial system, which is rapidly decaying. Many county courthouses remain in a perpetual state of disrepair. There is an ongoing statewide shortage of court reporters, impacting speedy access to hearings and the quality of records from hearings. Of Oklahoma’s 77 counties, 20 have been designed “legal deserts” by the American Bar Association, meaning the county has less than one licensed attorney for every 1,000 residents. Extreme variations in local court rule and unwritten practices often conflict with other rules and the Oklahoma Rules of Civil Procedure, leading to potential traps for counsel who are willing to travel and practice in multiple counties. Oklahoma state courts have not implemented standardised electronic filing, perpetuating the difficulty faced by counsel who work across the state.   

Oklahoma is home to 39 federally recognized tribes. With the largest Native population of any state, some call it "Indian Country". The Tribes have their own governments, and each has a unique with the state. Tribal courts have concurrent jurisdiction with the state over certain civil matters, including family law cases, in some circumstances. It is possible for multiple identical or similar proceedings involving the same litigants to exist simultaneously in state and tribal courts.

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.