How are large value assets divided in a Louisville divorce? Generally speaking, the assets and debts accumulated from the day you were married until the day your property division is completed during divorce are going to be considered to be “marital” property. Marital property is to be divided “equitably” between you and your former spouse, based upon Kentucky family law.
Key Takeaways about How Are Large Assets Divided in a Louisville Divorce:
- The process of property division in a high asset Louisville divorce is not a simple or easy matter, both from a legal perspective and a financial perspective.
- Large assets often include retirement plans or pensions, including public employees’ and teachers’ retirement as well as stock options, the equity in the family home, cash on hand, collections, real estate, vehicles, and any business interests or professional practice owned in whole or in part by either or both of the parties.
- Every asset and debt must first be classified as either marital property, the separate property of one of the former spouses, or “commingled or blended” property, which is usually a separate property asset that has been blended with marital funds or labor.
The Division of Assets and Debts is Not an Easy Process in a High Asset Louisville Divorce
The division of assets and debts is not an easy financial or legal process in Kentucky. How are large value assets divided in a Louisville divorce, and what do you need to know, both from a financial perspective and a legal perspective? High asset Louisville divorces usually involve some or all of the following types of property:
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- All money in any marital account, as well as cash on hand.
- The equity in your family home
- The ownership of a corporation or LLC, a closely held company, a family business, or a professional practice
- Stocks (including those that are fully vested versus assets such as unvested or partially vested stock options)
- Retirement plans, 401ks, public retirement such as teachers or public employees, and/or pensions
- Investment property, including rentals and vacation homes or units
- Second homes and other real estate
- Miscellaneous assets, including collections of any sort (cars, art, jewelry, firearms)
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One of the most challenging aspects of marital property division can be the determination of whether a specific asset or group of assets is to be considered as marital property, one of the former spouse’s separate property, or a “commingled” or “blended” asset – partially marital, and partially the separate asset of one of the parties. In most cases, if one of the parties acquired an asset before the day of the marriage, and marital funds and labor were not used at any point to support that asset during the course of the marriage, that asset will usually be classified as the “separate” asset of the spouse who owns it.
If marital funds or labor (such as payment of the mortgage or other costs, such as the repair, upkeep, or even painting of an otherwise “separate” rental property) are used to support a separate asset, it may become commingled or blended with marital funds or assets. This requires an extensive analysis and calculation to determine the value of the “separate” asset, as well as the portion of its value that is “commingled.” Any debt or asset obtained by a married couple, or either of the individual married parties from the day they were married to the date of any subsequent divorce will usually be considered a “marital” asset. Marital assets and the commingled portion of an otherwise separate asset are to be divided equitably between the two former spouses under Kentucky Family Law.
How Are Property Disputes Managed and Large Assets Divided in a Louisville Divorce?
The classification of assets and debts, as well as the division of marital and commingled property, can be complex. How are property disputes managed and large assets divided in a Louisville divorce? Negotiation and mediation are among the most powerful and effective options for resolving property division and related disputes during a Louisville or Kentucky divorce. There are also often significant tax issues and resulting financial implications (now, or in the future) that arise as part of the valuation and marital property division process. This is another reason why it is so important to work with the experienced divorce and family law attorneys at Dodd & Dodd.
We are highly recommended by former clients, other attorneys, as well as the legal industry. You should always ask your Dodd and Dodd attorney about how these assets are going to be managed, as well as our experience in similar circumstances and cases. This experience, and the ability to protect our client’s personal and financial goals and interests is one of the most important reasons why you should select Dodd and Dodd to represent you in a divorce that involves large assets.
We work to help to protect and accomplish your goals and objectives, and to keep you informed at every step during your case.
We invite you to review the strong recommendations of our former clients and the legal industry and contact Dodd & Dodd or call 502-584-1108 to schedule an appointment with one of our experienced, proven divorce and property division attorneys.
