Some of Kentucky’s wealthiest industries are based right here in Fayette County. This makes tracing separate property in Lexington divorce cases a high-stakes issue. It can be challenging and time-consuming.
With so much wealth on the line, high-value individuals going into Fayette County divorce court will often hire a hidden assets lawyer. This can help get to the bottom of who owns what.
Nobody likes to think about the failure of a once-happy marriage, but the reality is that Kentucky is one of the most divorce-prone states in the nation. Almost 3 of every 1,000 residents experience divorce in a given year.
Kentucky is also an equitable distribution state, making the division of wealth more complex and nuanced than in so-called “equal distribution” states. Assets are not simply split in half here.
The divorce process in equitable distribution states like Kentucky is not only more complex but also more subjective. According to Kentucky law, some of the factors that come into play when deciding what, precisely, is “equitable” in any given proceeding regarding the division of marital assets include:
- Each spouse’s contribution to getting the asset in question. The law explicitly protects working as a homemaker as the basis for a valid claim to marital wealth.
- The duration of the marriage. Marriages in the United States last an average of 20 years as of 2024.
- The value of any property or assets that the couple has already agreed upon
- The total length of the marriage
- Each party’s economic situation, including future earning potential and actual financial needs
If possible, these negotiations can be done privately through mediation. If both spouses disagree, they might need court intervention. Lexington divorces are often heard in the Robert F. Stephens Circuit Courthouse on 120 N. Limestone.
Confused About “Marital Property” in Kentucky? Hire a Hidden Assets Lawyer
Under Kentucky law, marital property includes everything that was earned after marriage, whether by one or both spouses. Without further legal context, that seems to put many personally-gained assets at unfair risk during divorce proceedings. Fortunately, the law also provides clear avenues for overcoming this presumptive stance.
Presumed marital property can be considered personal in a number of ways. Depending on the available evidence, potential scenarios for having marital property reclassified as one party’s personal property may include:
- Evidence to show that an asset was acquired personally before the marriage.
- Personally gifted assets to one party specifically, not the couple or their household.
- Proof that an asset was received in exchange for a personal asset from before the start of the marriage. Direct, one-for-one exchange for qualifying personal, non-marital property is considered personal property under Kentucky law.
- Evidence that the property was actually acquired after the legal decree of separation. This makes it the personal property of whichever party acquired it. This does not apply if it was acquired in a deliberate attempt to illegally transfer marital funds to personal assets.
- A legally binding agreement regarding ownership of the asset. This is a document made with both divorcing parties.
- A relevant increase in household wealth is directly tied to an increase in the value of a non-marital asset. It can be argued that the ensuing financial benefits were also non-marital in nature.
- The exclusion of one party’s retirement funds as personal assets. Under Kentucky law, any retirement accounts held by the other spouse must therefore also be presumed to be their personal, non-marital property.
If you are having difficulty proving which assets are marital or non-marital in a Fayette County divorce case, a reputable Lexington hidden assets attorney from Stange Law Firm, PC may provide the help you need.
To protect your wealth and prevent your ex from wrongly claiming marital property as their own, contact us today. Once we learn more about your case, we can explore which of our many legal strategies might work for your unique circumstances.
FAQs
What Is Tracing in Community Property?
Tracing in community property refers to the legal and investigative process of a court determining where a particular asset or property came from. They do this to accurately determine whether it is community property or the personal property of a single individual under Kentucky law. Tracing an asset back to its true origins is done through a comprehensive financial auditing process.
How to Divide Matrimonial Property?
To divide matrimonial property in Kentucky, there is a range of different factors. They include the household’s current finances, each spouse’s earning potential, and the duration of the marriage. This exhaustive process is necessary because Kentucky is an equitable distribution state. This is a different process compared to an equal distribution state. In these states, divorcing couples receive a simple 50/50 split of marital assets.
How Is Property Split After Divorce?
In Kentucky, property is split after divorce based on the equitable distribution principles enshrined in state law. This means that relevant factors in the division of marital property don’t just include whether or not an asset was gained before or after marriage. Subtler factors are used as well, including each spouse’s future earning potential, the length of the marriage, and each party’s actual financial needs.
Is Inheritance Marital Property in Kentucky?
Inheritance is not usually considered marital property in Kentucky. The only exception is for inheritance specifically bequeathed to a married couple, rather than to a single individual. This is uncommon, but could potentially exist through an estate planning instrument like a will or trust. For advice specific to your own situation and assets, it is important to work directly with a trusted attorney who knows the ins and outs of these cases.
Stange Law Firm, PC: Lexington’s Choice for Complex Marital Property Division Cases
Marital division proceedings can be complex and emotionally draining. Let Lexington’s preferred divorce and marital property division attorney take the lead on your hidden asset case.
That way, you can focus on rebuilding, supporting your family, and settling into your new situation. There is life after divorce, and with Stange Law Firm, PC’s world-class legal representation, your legacy can follow you into that new life.