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Equitable marital asset distribution and determining ownership

On Behalf of | Mar 31, 2023 | High-asset Divorce

While Kentucky requires the equitable distribution of marital assets during a divorce, the process requires distinguishing between separate and marital property.

Separate property depends on acquisition before the marriage or during the marriage either from inheritance or as a gift. Martial property is the debts or assets assumed during the marriage. There are exceptions to these categories and division standards.

Complicating the labeling of assets

Assets can include stocks, real estate, business ownership, retirement accounts and more. Commingling is a concern when a combination of marital and separate property exists, though this could occur unintentionally.

For example, a premarital bank account with one spouse’s name could get re-labeled as marital property if the other spouse deposits money into it. The same could go for real estate. Despite having one spouse’s name on the deed, if both spouses contribute to the expenses or mortgage, the property becomes a marital asset.

Dividing the debt of a marriage

There are several debts married couples could take on, including mortgages, credit cards or medical bills. While the Kentucky standard is equitable division, there are several factors that go into the decision.

  • Origin or nature of the debt, such as reckless decision-making
  • Economic circumstances of each individual
  • Overall liabilities and debt associated with each spouse

Unfortunately, creditors could still pursue you for payment even if your spouse has the responsibility for the debt. A court order can remove you from the account.

While it is advantageous for you to amicably work out the division of assets with your partner during the divorce, the court will step in as necessary. This could lead to unwanted financial responsibilities or the loss of property that you preferred to keep.