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Dividing your assets in divorce

On Behalf of | Feb 3, 2022 | Family Law |

When Kentucky couples decide to divorce, they will need to divide their assets and debts. Kentucky laws dictate equitable distribution, where each spouse owns a certain share of the assets acquired during the marriage, but the division is not always a 50-50 split.

Preparing for negotiations

Before beginning property negotiations during the divorce, you should identify all your assets. You will also need to identify which of those assets are marital assets and which are separate assets, which can include inheritances and any assets bought with that money. Assets to identify include:

  • Bank accounts
  • Credit cards and other lines of credit
  • Investment accounts
  • Property, including the family home
  • Retirement, pensions and life insurance policies

Bank accounts and lines of credit

You need to identify separate and joint accounts. You should close joint accounts and transfer your part of the money into an individual account. You and your spouse can go together to the bank to close the account or you can wait for the divorce decree. With joint cards, it is always best to close them, whether paid off or not.

Property

The family home is often one of the assets with the highest worth, but it also usually comes with a mortgage. With the home, you can either buy out your spouse, refinance the mortgage in your name if you are keeping the home, or sell it and split the money you make from the sale.

Retirement and pension plans

For these types of accounts, you will need to know the policies of each plan administrator. You will also need to follow strict rules and get a qualified domestic relations order to be able to divide some of the accounts without penalties.

Dividing assets fairly is a very demanding job that needs preparation and a sharp eye for details. You might wish to work with a professional team to help you prepare for this process.