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Dodd & Dodd Attorneys, PLLC Louisville Kentucky

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What is Usually Considered to Be Separate Property in a Louisville Divorce

What is Considered to Be Separate Property in a Louisville Divorce

What is usually considered to be separate property in a Louisville divorce?  What is the difference between marital property and separate property during the property division phase of a divorcePrenuptial and postnuptial agreements can have a substantial impact on these issues.

One of the first issues in a divorce is to characterize the assets and debts of each former spouse.  Both spouses must provide extensive disclosures of all assets and debts, regardless of who is on title or listed on an account.  The Court and/or the parties (through negotiation or mediation) must then determine which assets and debts are marital property, and which are the separate property of one of the spouses.  Marital property is to be equally divided between the parties.

How is this determination made and what is usually considered to be separate property in a Louisville divorce?  Generally speaking, any asset or debt acquired by either or both parties from the date of the marriage until the date of separation is considered to be marital property (with a few exceptions we will not discuss in this post).  Kentucky Family Law generally defines property which was owned by a party prior to the marriage, or property acquired during the marriage by “gift, bequest, devise, or descent” to be “separate” from marital property.  The designation of separate property also extends to income derived from separate property such as appreciation, profits or rental income.

When was an asset or debt acquired?  This is the first question when determining the characterization of an asset or debt.  It is important to note that an otherwise “separate” asset can become a “blended” asset if marital funds or labor are used to support, repair, sustain or otherwise improve what would otherwise be a separate asset.  The spouses may also negotiate or agree to “transmute” a marital asset or debt into the separate property of one of the former spouses.  In these cases one spouse would release their marital interest in their rights to an asset to become the “sole and separate property” of the other spouse.

Property division issues can be one of the complex issues in any divorce.  This is especially true when one or both of the spouses own a business or have a professional practice.  What is marital property?  What is usually considered to be separate property in a Louisville divorce?  Can an agreement be reached between the parties to set aside a marital asset as the separate property of one of the former spouses?  The answers to these questions can be quite legally and financially complex.  This is why it is important to seek the advice and counsel of the experienced divorce and family law attorneys at Dodd & Dodd.

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.