Practical Solutions, Personal Service
Photo of Lisa L. Johnson

What happens to my international assets during divorce?

On Behalf of | Oct 30, 2024 | High-asset Divorce

The thought of splitting up your hard-earned wealth during a divorce is tough enough, but what about those assets you’ve acquired abroad? If you’re facing a divorce in Kentucky and own property or investments outside the U.S., you might be wondering how the courts will deal with these far-flung holdings. Let’s break down what you can expect when your international assets come into play during a Kentucky divorce.

Kentucky’s fair share approach

Kentucky follows what’s called “equitable distribution” when dividing marital property. This means the court aims to split things fairly, but not necessarily 50/50. And yes, this includes your overseas assets. Whether it’s a villa in Tuscany, a bank account in Switzerland or a business in Hong Kong, if it’s considered marital property, it’s on the table for division.

But here’s the catch: Kentucky courts need to establish their authority over these international assets first. This can get tricky, especially if the assets are in countries with different legal systems.

Hurdles in splitting up foreign assets

Dividing international assets isn’t always a smooth process. Here are some bumps you might encounter:

  1. Getting the numbers right: Pinpointing the exact value of foreign assets can be a headache. Think about currency swings, different accounting rules and fluctuating exchange rates.
  2. Keeping it honest: Some folks might try to squirrel away assets in offshore accounts. Full disclosure is a must, or you could face serious consequences.
  3. Tax tangles: Splitting up international assets can trigger tax issues both here and abroad.
  4. Making it stick: Getting the other party to follow through on court orders about international assets can be tough, especially in countries that don’t cooperate with U.S. courts.

To tackle these issues, your divorce lawyer might need to team up with international legal experts, money gurus and forensic accountants. They can help track down assets, get accurate valuations and sort through the maze of international laws.

Remember, do not try to hide your international assets. Courts don’t look kindly on this behavior and might penalize the spouse who tries to keep things under wraps. With the right approach and professional guidance, you can protect your interests and reach a fair settlement in your high-stakes divorce case.