What is the difference between marital property or separate property in your divorce? Why is the “date of separation” such an important issue in your Jefferson County or Louisville divorce?
When a couple divorces in Louisville, their assets and debts (or liabilities) must be carefully accounted and appropriately divided. The property, assets, retirement accounts and investments which they acquired or accumulated during the course of the marriage is known as “marital property.” Marital property is most often divided fairly evenly between the parties absent extreme circumstances or the presence of a prenuptial agreement.
Property that was owned by one of the spouses prior to the marriage is known as “separate property” as long as it was maintained completely separate from marital property, and no marital funds were used on the separate property during the course of the marriage.
The discussion of whether an asset or debt is marital property or separate property can become quite challenging in many cases, and this is why it is so important to have the representation of the experienced skilled attorneys at Dodd & Dodd. We have practiced in Jefferson County Family Court for decades and provide informed insight based upon this extensive experience as well as our proven track record as trial attorneys.
One of the challenges in the division of property arises when marital funds were used to support a “separate” asset. For example, if one of the spouses owned a vacation cabin prior to the marriage and the cabin required repairs during the course of the marriage and marital funds were used for the repairs or renovations the asset would become blended. It is not entirely a separate asset, nor is it marital property.
Sophisticated financial analysis must often be performed to calculate the value of the marital’s interest in a “separate” asset while ensuring that the marital interest is fairly divided as part of the divorce. This can be especially difficult when investment accounts, a business or professional practice is involved in your divorce proceedings.
The date of separation is a critical date in any divorce. This date marks the point where the former spouses acquire property or earn income without having to divide it as marital property. This can also become a clouded issue, and it is important to have the skilled representation of our experienced Louisville divorce and family law attorneys.
If you are considering a divorce in Louisville and have questions regarding marital property or separate property we invite you to contact us or call 502-584-1108 to schedule an appointment with one of our seasoned attorneys.