During a divorce, spouses are supposed to reveal all of their assets and debts for the purpose of property division. Signs that a spouse in Kentucky may be attempting to hide assets could include taking money out of a shared account, showing a sudden interest in cryptocurrency or even investing in art and antiques.
A study released in June may seem to seem suggest that women in Kentucky who get a divorce should try to get the marital home, but experts say property division and maintaining financial security is more complicated than that. Some past studies have shown that women tend to suffer financially after their divorce, but women who keep a home after a divorce might be more financially secure than single women.
When Kentucky couples who have been married for decades decide to get divorced at an older age, certain complications may arise. In many cases, older couples who are going through a "gray divorce," or a separation that occurs when the individuals are over the age of 50, may have larger financial assets that will need to be divided.
Property division negotiations between Kentucky couples who are getting a divorce may hold some financial pitfalls. For example, a couple may decide that one will take a 401(k) while the other will take a brokerage or checking account that has the same value. However, the person who takes the brokerage or checking account has a much more liquid asset than the person with the 401(k) because of penalties associated with withdrawals from the retirement account.
For many Kentucky residents going through a divorce, dealing with the family home is one of the top priorities. Some want to retain ownership of the home while others want their fair share so that they can purchase a new home as soon as the divorce is finalized.
More Kentucky couples might be divorcing when they are 50 and older compared to previous generations. Since 1990, the divorce rate for people 50 and older has doubled. For people 65 and older, it has tripled. This can cause serious problems for people's retirements. Retirement accounts must be divided, and this can be costly. Furthermore, older adults do not have the time to replenish their retirement accounts that younger ones would have.
In recent decades, prenuptial agreements have become increasingly common ways to handle a variety of matters in the event of a divorce. Kentucky law regards prenups essentially as a type of contract between the spouses.
When Kentucky couples decide to divorce, they should be aware of how a bankruptcy may affect their property division. A case that was decided by a federal bankruptcy court in Georgia demonstrates that family court orders that state property divisions are not subject to bankruptcy may not override a bankruptcy court's ruling.
Kentucky residents who are planning to divorce will necessarily have to divide their property as a part of the process. If you are one of them, you will need to first figure out which property is marital and which is nonmarital. Only the marital property will be divided in your divorce.
When a Kentucky couple goes through a divorce, marital assets are divided based on state law. Depending on how a trust is written, it is possible that a spouse could lay a claim to assets inside of a trust created by the family of the other spouse. One way to prevent this is to create clear language that those assets are not to be considered marital property or used to calculate alimony.