There are a wide variety of issues in a Kentucky divorce. From alimony payments to child custody arrangements, you and your soon-to-be-ex-spouse may disagree with one another on one or several terms of the divorce settlement.
One of the most common, hotly contested divorce issues involves property and asset division. In the United States, there are two types of laws which determine property division: community property laws and equitable distribution laws.
Community Property vs. Equitable Distribution
Nine states – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin – follow community property laws. In these states, both parties are assumed to an equal share of all property, income, and debts accumulated during the course of the marriage. While this method is simple because everything is split 50/50, it can also be unequal and can lead to higher alimony and child support payments.
On the other hand, equitable distribution laws do not divide assets down the middle. Rather, the court looks at various factors in determining a “fair and equitable” division of all marital property.
The equitable distribution of property during a divorce in Kentucky involves the following factors:
- Each party’s income and property upon marriage and when they filed for divorce
- Duration of marriage
- Each spouse’s age and wellbeing
- Retirement, pension, health insurance, and inheritance rights of each spouse
- The potential future financial circumstances of each spouse
- Alimony payments
- The liquid or non-liquid character of all marital property
- Each party’s tax consequences
First, the court needs to determine what is considered marital property and separate property. Then, the court must apply a monetary value for all properties and assets. In conclusion, the court decides a fair and equitable division.
If you are interested in filing for divorce in Kentucky, contact a Louisville divorce attorney at Winner Law Group, LLC and schedule a consultation today.
