Kentucky family law provides provisions for dividing marital property equitably in a Louisville divorce. However, what constitutes “marital” property and how can you ensure that not only are all assets fully disclosed but accurately valued?
The “marital unit” is generally established by the marriage and lasts until the “date of separation.” Any debt or asset acquired by either or both of the parties from the date of the marriage until the date of separation is probably going to be considered to be Marital property with a few exceptions:
- Assets received by one of the spouses through a will or trust
- Assets passed on through inheritance
- A Gift given to one of the spouses
- Income or gains from “separate” property
Generally speaking, any asset or debt taken on by one of the spouses prior to the date of the marriage or after the date of separation will remain the separate property of that spouse. Gifts given by either spouse to the other and all other assets and debts acquired during the marriage (regardless of whether an account or title to the asset is under only one of the spouse’s name) generally belong equally to the former spouses. They are to be divided equitably.
The first step in dividing Marital property equitably in a Louisville divorce occurs at the outset of the process. Each party must provide a series of disclosures which require both parties to list every asset and every debt regardless of whether it is a marital asset or debt or the separate property of one of the spouses. Any attempt to conceal money or assets in a Louisville divorce can result in severe financial consequences.
In one famous case, one of the spouses hid the fact they were holding a winning lottery ticket before the date of separation and did not disclose it to the Court during the divorce. Instead, the individual waited until after the date of separation, opened a new account in their own name and then presented the ticket in order to keep the millions in winnings for themselves. Ultimately, this deception backfired spectacularly as the Court ordered all of the money to be given to the other spouse as a consequence of attempting to hide the winnings from the Court.
Courts have awarded businesses to the non-owning spouse due to attempts to hide income and significantly under-value the company. The spouses have a powerful legal obligation known as a “fiduciary duty” to one another until the date the divorce is finalized. Generally speaking, this requires them to conduct themselves with the best interests of their spouse in mind. To deal fairly and forthrightly in all matters.
The process of dividing marital property equitably in a Louisville divorce cannot be undertaken until every marital asset and debt are fully identified and accurately valued. These issues can become quite contentious when a business or substantial assets (or debts) such as investments and/or retirement accounts are on the table. This is why you need to work with the experienced, proven divorce and family law attorneys at Dodd & Dodd. We protect your interests while working to ensure full disclosure and accurate valuation.
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.
