In a Kentucky divorce, learning how the state classifies property may help you understand how courts distribute certain assets. Knowing the difference between separate and marital property could protect your interests. This distinction often plays an important role when high-value assets are involved.
What is marital property?
Marital property generally includes assets and debts acquired during your marriage, regardless of whose name appears on the title. Examples of marital property may include:
- Homes you purchased during your marriage
- Vehicles you purchased while married
- Retirement accounts that grew during your marriage
- Joint bank accounts
- Debts you and your ex-spouse accumulated together
Kentucky courts typically divide marital property fairly during divorce proceedings. Keep in mind that what is fair is not always equal. The division depends on various factors, which typically include the length of your marriage, each spouse’s economic circumstances and contributions to the marriage.
What qualifies as separate property?
Separate property generally belongs to one spouse individually. In Kentucky, it is typically not subject to division in divorce. Examples of separate property may include:
- Assets you or your spouse owned before getting married
- Inheritance belonging to you or your spouse
- Gifts received by only one spouse during the marriage
- Property you or your spouse acquires after a formal decree of legal separation
If you sell separate property and use those funds to purchase something else, the new asset could also remain separate. However, it is important to be careful about commingling separate property with marital assets, as this can change its classification.
What is commingling and what makes it problematic?
It can become a problem if you mix separate property with marital property. For example, if you put your inheritance in a jointly owned account, it might become marital property. Keeping detailed records and maintaining separate accounts for your individual property can help preserve its classification.
Knowing the difference could protect your interests
By understanding how Kentucky classifies marital and separate property in a divorce, you can take steps to avoid commingling the two. Knowing these classifications may also help you develop a better understanding of what property the court will allocate to you after your divorce. Depending on the circumstances, this share might help you start a new chapter in your life and explore new opportunities.