Property division in divorces usually involve dividing the marital house, vacation properties, businesses, motor vehicles and the like. However, some cases involve distributing unusual assets that may make property division confusing and complex. This includes memberships in private clubs, such as golf and country clubs.
If you are dealing with a divorce involving memberships, below are things you should understand about their division in Kentucky.
Equitable distribution applies to memberships
Despite its unusual nature, memberships the spouses acquire during the marriage, just like other real and personal property, follow Kentucky’s rules of equitable division, which means they are divided fairly and equitably between the spouses.
When deciding what is fair and equitable, courts consider several factors such as each spouse’s economic circumstances, contributions to the marital property, the length of the marriage and the standard of living during the union. Equitable does not necessarily mean equal, but rather what is fair based on the circumstances.
Ways to distribute such asset
After a proper valuation of a membership, the court or spouses can divide them in various ways. For one, one spouse may get the full membership while the other may receive other assets of the same value. This often happens when one spouse has a greater attachment to the membership. Moreover, one spouse may buy the other’s share of the membership value and have full ownership. It is also possible for the spouses to simply sell the membership and split the proceeds between them. Ultimately, the appropriate distribution method will depend on the unique circumstances of each case.
Whether you are resolving the division of your marital assets in court or private settlement, such as mediation, it is essential to understand how your state’s laws affect the division of your assets, including memberships, so you can make informed decisions to protect your property rights.