Commingling marital and separate property complicates many Louisville divorce cases. Kentucky residents who are contemplating divorce may wonder what happens to gifts or inheritances which were given to one partner during the marriage. That often depends on whether or not the gift was commingled with marital funds.
In the absence of a prenuptial agreement which specifically establishes the separate property of either or both of the parties, the assets and debts of the parties must be characterized and ultimately divided. Any asset or debt which was acquired during the course of the marriage is generally known as marital property. Marital property in a Kentucky divorce is divided equally between the parties.
There are a few exclusions to the marital property statutes such as personal injury awards or settlements as well as properly structured and separately maintained financial gifts and inheritances.
Property and assets which were owned prior to the marriage and kept separate during the marriage are usually considered “separate property.” The caveat here is that such assets cannot be put in a joint marital account, or they may be considered marital property and subject to division.
When “separate” funds or assets are used for the benefit of the married couple, or marital funds are used to support or maintain an otherwise separate asset it is known as “commingling.” Commingling marital and separate property complicates a Louisville divorce.
Resolving the value of marital property and separate property often requires detailed financial analysis by an external expert as well as extensive negotiations and/or mediation. If the parties cannot reach agreement on what is marital property and what is a separate asset as well as the value of each the Judge in your case must decide the matter.
Commingling marital and separate property is actually quite common in a Louisville divorce case. For example, a loan made to one partner during the marriage may have significantly different meaning at divorce. If the loan was used jointly as marital funds, then it may be seen as a marital liability and subject to joint repayment. However, if the funds were construed to be a gift and placed in a separate account, a former spouse may have no obligation or right to claim or repay half of it during marital property division.
The divorce and family law attorneys at Dodd & Dodd assist during divorce negotiations to help to differentiate marital property from the separate property of either former spouse. This can help a couple to reach a fair and reasonable settlement in a more cost-effective manner.
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.
