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Property division of commingled assets can be a complex process

On Behalf of | Dec 5, 2017 | Firm News, Property Division

When a Kentucky resident enters into marriage with already accumulated assets, he or she may be smart to protect those assets from the start. The only way to ensure that an asset such as a house does not form part of the property division process in the unfortunate event of a divorce will be to prevent the other spouse from investing any finances into the home. The court’s authority over assets includes only those that were gathered during the marriage — along with pre-marital assets that were later commingled.

An example of the non-marital property becoming marital property includes a case in which a couple purchases a home that is financed by the inheritance brought into the marriage by one spouse. Also, if one spouse puts his or her inheritance into the couple’s joint bank account, the money will become the property of both. When this happens, the court must decide how to split the property equitably. Equitable does not necessarily mean equal.

Property that can be nonmarital includes gifts and inheritances, property acquired before the marriage or in exchange for non-marital assets. Property that one spouse receives after a legal separation judgment will belong to that person. Furthermore, property recorded as separate on a valid agreement between the spouses will be regarded as such.

The property division process can be complex, particularly if some assets become commingled. The intricacies of how each state interprets divorce law can further complicate the process. The most appropriate step might be to retain the services of an experienced Kentucky divorce attorney who can prepare him or her for the way in which the court will divide the property.

Source: liveabout.com, “How Does The Court Determine If Property is Marital Or Non-Marital Property?“, Cathy Meyer, Accessed on Dec. 1, 2017