Property division is something that will be applicable in every divorce. At The Farrish Law Firm, L.P.A., our property division lawyers understand just how complex this aspect of a divorce proceeding can be.
Kentucky courts state that property division in a divorce should be based on something called “equitable distribution,” also referred to as “common law.” This law states that property isn’t automatically assumed to be owned by both spouses during a marriage. Instead, property is divided based on what is fair. A key part of equitable distribution is that “fair” isn’t necessarily “equal.”
How does the law break down this distribution?
According to Kentucky Law (KRS 403.190), the court divides all marital property based on a few important factors:
- How much income both spouses possess
- The value of the property which each spouse will receive
- The duration of the marriage
- Whether either spouse is undergoing certain economic circumstances which may place him or her under financial strain
This Kentucky legislation doesn’t just apply to real estate properties during a divorce; “property” during a divorce procedure refers to many assets, such as:
- Debts owed
- Cash
- Bank accounts
- Retirement accounts
- Personal items
- Real estate property
The courts will decide on a fair division of all marital property, which is defined as the property acquired by either spouse before and during the marriage. There are five main exceptions for what is considered marital property:
- Property acquired by one spouse as a gift or inheritance, so long as there have been no substantial increases in value
- Property acquired in exchange for a property which was acquired by one spouse before the marriage
- Property acquired after a decree of separation
- Property which was explicitly excluded via a valid agreement prior to the marriage (such as a prenuptial agreement)
- Property which was acquired by one spouse prior to the marriage and increased in value during the marriage, as long as the other spouse did not play a role in this increase during the marriage
According to Kentucky law, a couple may solve the issue of property division through a separation agreement but this division is still subject to court approval. If the court rules that the division is unfair, a new division of property can be arranged.
If you and your spouse are getting a divorce, it’s important to have experienced divorce and property division attorneys advocating for you. The attorneys at The Farrish Law Firm, L.P.A. are familiar with the property division issues that Northern Kentucky couples often face during a divorce proceeding. For more information on how we can help you through your divorce case, contact us today.
