Offsetting assets is common when dividing marital properties in a divorce. In many cases, it allows for an easier distribution during the property division process, whether in court or private settlement. Nonetheless, this approach still has some complexities that parties should understand to ensure fairness.
In relation to the equitable distribution rule
Kentucky follows the equitable distribution rule during property division, which means divorce courts divide marital assets between spouses fairly and equitably. This also applies to agreements made through private settlements since courts will still review and approve them to ensure fairness.
As long as offsetting properties against each other does not obstruct an equitable distribution, courts can allow it.
Considering accurate valuation of assets
To offset properties against each other, it is crucial to first obtain a precise valuation of the assets, such as businesses and real estate properties. For instance, if one spouse wants to solely keep a vacation home, they can offset only assets of equivalent value. This relates to the equitable distribution rule, which ensures fair and equitable division.
Other considerations
When offsetting properties in a divorce, multiple factors are in play. Depending on the involved assets and the case facts, parties have to consider tax implications and future property value appreciation or depreciation.
Dealing with high-asset divorce and property division can be overwhelming, especially when your rights and future are in line. It is recommended to seek legal advice from a professional who is familiar with federal and state laws to review your situation and available options.