Dividing marital property can be one of the most challenging aspects of divorce. In Kentucky, the law follows the principle of equitable distribution, which means property and debts are divided fairly, though not necessarily equally.
Knowing how this process works can help ease uncertainty during a difficult time.
What equitable distribution means
Equitable distribution aims to divide property based on fairness rather than a simple 50/50 split. Kentucky courts consider several factors when dividing assets, including each spouse’s income, financial situation, age, health, and the length of the marriage. Custody arrangements for minor children may also play a role in determining what is fair.
Marital vs. separate property
Kentucky law distinguishes between marital and separate property. Marital property includes assets acquired during the marriage, while separate property refers to items owned before the marriage or received as gifts or inheritances. Only marital property is subject to division. Clear documentation is essential to determine which category an asset falls into.
Handling joint debts and assets
Many divorcing couples in Kentucky must address joint debts and high-value assets like real estate. Selling property is sometimes necessary to settle debts and divide the proceeds equitably. It’s important to understand that if both spouses are ordered to pay a joint debt, each remains responsible for the full amount. If one party fails to pay, creditors can pursue the other.
Ensuring a fair division
Equitable distribution doesn’t guarantee equal shares, but it aims to create a fair outcome for both parties. By understanding Kentucky’s approach to marital property division, individuals can take steps to protect their financial future and work through the divorce process more effectively.