Kentucky is among the states that do not divide marital assets strictly equally between a divorcing couple. Instead, the state uses an equitable division approach when splitting the property and assets acquired during the marriage.
An equitable division aims at achieving fairness rather than equality. As such, the court looks at various factors when dividing marital assets. They include:
- The length of the marriage
- The earning potential and financial situation of each spouse
- The monetary and non-monetary contributions of each spouse to the acquisition of marital assets
- The value of the property awarded to each spouse, among others
In light of these and other factors, you may end up with different portions of the marital assets. It’s how an equitable division works.
How are marital debts divided?
Debts incurred by a couple during the marriage (marital debt) are also subject to division. These include credit card debt, car loans, home mortgages and even business loans. Marital debt is divided similarly to assets – equitably. The same factors that influence property division will guide the splitting of marital debt.
What happens to commingled assets?
Commingling of assets occurs when separate or personal property mixes with marital property. When this happens, the commingled asset may lose its status as separate property and be considered a marital asset.
For instance, if a spouse deposits their inheritance in a joint bank account for everyday use, the funds may be deemed a marital asset and subject to division. However, this can be avoided by identifying and distinguishing the separate and marital interests in the said asset.
Safeguard your financial interests in a divorce
If you are going through a divorce in Kentucky, seeking qualified legal guidance is advisable. The stakes are always high during the property division phase of a divorce, and even the slightest of mistakes can have far-reaching consequences.
The necessary assistance will help you easily navigate the legal landscape and address any complexities that may arise while protecting your financial interests.