Have you been wondering how to analyze assets and debts in a Louisville divorce? What is “Marital property” and what is “separate property?” When is property both, or “commingled?”
Generally speaking, marital property is considered to be any debt or asset acquired by either or both of the spouses from the date the date they were married until the date the decree is issued by the Judge in their case. Separate property usually applies to any account, debt or asset obtained by one of the individuals before they were married (and the account, asset or debt was maintained and associated funds were kept completely separated from any marital accounts, and no work or funding was provided by the non-owning spouse to support that asset or debt), as well as any account, asset or debt acquired after the date of separation.
Gifts and/or inheritances that are received by a spouse during the marriage may be determined to remain the separate property of that spouse if that gift or inheritance has been structured in a proper legal and financial fashion, and kept entirely separate from marital accounts or funds. If marital assets or funds are commingled in any way with the separate asset of either party, then the Court will need to determine the impact of the commingling, and the amount of that asset which is “marital” versus the amount of the asset that would remain “separate property.”
When you begin the process to analyze assets and debts in a Louisville divorce, one of the first steps is to verify the date each asset was obtained. If that date falls between the date of the marriage and the final property division order of the Court, the debt or asset will likely be considered to be marital property, subject to equitable division. Every asset, retirement account or pension, business interest, collection, financial or investment account, as well as all debts and credit card accounts must be fully and accurately disclosed as part of the financial disclosures at the beginning of the process. The parties here in Kentucky are bound by a significant legal obligation to one another known as a “fiduciary duty.” From a legal perspective, a fiduciary duty is the responsibility to act in the best interests of the other party from the date of the marriage until the divorce is finalized and final orders are issued.
This fiduciary duty establishes an enforceable legal requirement for each party to make a complete, transparent, and accurate disclosure of all pertinent details, forms, documentation, statements or other information, as well as the value of each asset or debt. This information allows our Family Court to thoroughly analyze assets and debts in a Louisville divorce. In most cases, each spouse will be able to keep their separate property, debts and accounts. Marital assets and debts are to be equitably divided between the parties during a Louisville divorce.
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 attorneys.
