How will our property be divided in a Louisville divorce? Kentucky is a “marital property” state. The marital assets and debts of parties considering a divorce are therefore known as “marital property.” Marital property is to be divided equally between the spouses. This includes all acquisitions during the course of the marriage, all debts incurred and the earnings of both parties up until the “Date of Separation.”
Marital Property or Separate Property?
The challenge in many cases is the determination of the nature of property held by the former spouses. Generally speaking, if one of the parties owned property, investments or a business prior to entering the marriage or received a specific inheritance during the course of the marriage and did not commingle marital assets with this property the assets will be considered to be “separate property,” belonging to only one of the parties.
The greatest challenge involves separate property which was commingled with marital funds or assets.
For example, if the wife owned a rental property prior to the marriage and did not use any marital funds to support or improve it the asset would be considered as separate property of the wife.
However, if in this example the married couple used money from their joint accounts to make some of the mortgage payments, put on a new roof or the husband put a lot of work into the home over the years (painting, maintenance, etc.) the asset is usually considered to be “commingled.” The court or the parties themselves will have to determine the value of the “separate” portion of the asset and the amount of its value which has become marital property.
The question of “How will our property be divided in a Louisville divorce” is often not a simple matter. Let us consider briefly the valuation of a business interest or professional practice. If the business or professional practice was obtained or started during the course of the marriage it will be considered to be a marital asset.
If one of the parties already owned the business or was in the professional practice at the time of the marriage it could be a separate asset or part of the business may be considered to be marital property. However, if the couple provided loans or funds for it to get through tough times or if business assets and funds were commingled with joint assets and funds the financial questions become a lot more complex.
The divorce and family law attorneys at Dodd & Dodd have decades of experience in Jefferson County divorce and family law courts. Our clients draw on this experience and the informed advice and counsel we provide to make sound decisions. We help you to understand the issues within your divorce and how to navigate through them efficiently.
How will our property be divided in a Louisville divorce? If you have questions regarding marital property, separate property or the impact of a business in a divorce we invite you to contact us or call 502-584-1108 to schedule an appointment.
