When a couple decides to divorce in Kentucky, dividing property, including real estate, becomes a crucial part of the process. Kentucky follows equitable distribution laws, which means the division of real estate aims to be fair but not necessarily equal.
Marital vs. non-marital property
Before dividing real estate, courts determine whether the property is marital or non-marital. Marital property includes any real estate acquired during the marriage, regardless of whose name is on the title. Non-marital property includes real estate owned by one spouse before the marriage or acquired through inheritance or gift. Only marital property is subject to division.
Equitable distribution of marital property
Once the court identifies the marital property, it proceeds to divide it equitably. This does not necessarily mean a 50/50 split. The court considers factors such as each spouse’s contribution to acquiring the property, the duration of the marriage, and the financial needs of both parties. Spouses may agree to sell the property and divide the proceeds or one spouse may keep the property, compensating the other for their share.
Handling real estate debt
If the marital property includes a mortgage, the court also determines responsibility for any outstanding debt. The spouse who receives the home might assume the mortgage, or both parties could remain responsible. It’s important to remember that even if the court assigns responsibility, it does not remove a spouse’s name from the mortgage without refinancing.
Considering the future of the home
In many cases, divorcing couples must weigh whether keeping the marital home is feasible for either spouse. Factors like the ability to maintain mortgage payments, taxes, and upkeep often influence this decision.
Navigating real estate decisions in a Kentucky divorce can be complex. Seeking legal guidance ensures that both parties understand their rights and options, helping them move forward with confidence.