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.
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.
If you're going through a divorce, you understand that there are many financial details to worry about: Will you be able to retire? Should you keep the house? What about spousal support?
Kentucky courts follow the rule of equitable distribution when dealing with the division of marital assets during divorce proceedings. This also applies to marital debts such as student loans. However, as is the case with other indebtedness, the decision could hinge upon when the student loan was taken out.
When a Kentucky couple agrees to get a divorce, one or both individuals may have their eye on the house, especially if they have lived in the home for years or raised children there. However, if no agreement regarding this large asset can be reached, the judge may make the final decision.
The process of ending a marriage is generally stressful for all parties involved. Undoubtedly, working through what will happen to the marital assets is one reason people in the state of Indiana feel that way. This is understandable when one considers the approach used in the state to make this determination.