What are a few examples of separate property in a Louisville divorce case? Once all of the assets and debts are clearly established in the process of property division, one of the next steps is to identify those assets and debts which are “marital property,” those which are to be considered as the “separate property” of either spouse and those which have become blended or commingled.
Generally speaking any asset or debt obtained by either or both parties from the date of the marriage to the date of separation will be considered to be part of the marital property of the spouses. However, there are instances where debts and assets obtained during the term of the marriage are not considered to be marital assets based upon Kentucky Family Law. A few examples of separate property in a Louisville divorce which might appear to be marital assets include a properly structured inheritance or gift for either spouse, as well as additional assets or profits which were earned by property which was obtained prior to the marriage or after the date of separation.
For example, if one of the spouses owned rental properties prior to the marriage and did not use any marital assets or the work of the other spouse for improvement during the course of the marriage these properties would usually be separate assets during a divorce. In many cases these assets are held by a corporate entity (separate property). If the entity transacts a property, experiences income, makes improvements or acquires new assets based upon income and equity from the portfolio the newly acquired property and income would remain separate from marital property as long as it was never blended with a marital account.
Another of the examples of separate property in a Louisville divorce would be an asset purchased by properly structured inheritances which were kept separate from marital funds and accounts. In this example, the party receiving the inheritance and properly keeping it separate from marital funds might purchase a piece of art. The art itself would remain the separate asset of that spouse as it was acquired using separate funds.
In many Louisville divorce cases property which might have been considered is commingled in some way with marital funds, assets or labor to become a blend of marital and separate property. In these cases a complex legal and financial process must be undertaken to establish the portions of the value of these assets which are “marital property” versus “separate.”
This is why it so important to work with the experienced, proven divorce and family law attorneys at Dodd & Dodd. Our attorneys provide sound advice and counsel on how to protect a business, professional practice, collection or other separate property going into and during a divorce. If you have substantial assets or property and are considering a divorce it is important to pre-plan with our attorneys to protect your interests.
We invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.