When Kentucky couples decide to divorce, they are often struggling with intense emotions surrounding the end of their marriage. In addition, they must also find ways to work together to resolve important issues such as child custody as well as the separation of their joint finances. In many cases, spouses may not fully understand what it means to divide property, assets and debts.
One of the first things that a couple will need to do is develop an accurate understanding of marital assets as well as joint debts. This can be a complex process, particularly if spouses have not been entirely honest with each other regarding spending and the maintenance of financial accounts. Still, attorneys and other financial professionals will need to know about current debts and assets so that a fair property settlement can be negotiated.
An area of particular concern is that of debt. While it is not unusual for one spouse to agree to take on responsibility for one or more joint debts, the reality is that creditors are not obligated to honor a divorce agreement. Should the former spouse failed to make timely payments, the other party may be held responsible for debt repayment and might even suffer damage to his or her credit.
Taxes may be another concern, and spouses are often advised to keep copies of tax returns for at least the last five years so that they can address any issues as they arise. In addition, recent changes to tax law make it so that alimony payments are no longer tax-deductible for the party making these payments. Alimony recipients are not required to pay taxes on this income, so these factors should be taken into consideration when coming to an agreement regarding ongoing support.
A person who is considering divorce may benefit from speaking with an experienced family law attorney. Counsel may be able to review the client’s case and make recommendations regarding a comprehensive settlement agreement.