What is ‘Marital Property’ in Kentucky Divorce?

Rings with decree of divorce, judge gavel and key from house on table

In a Kentucky divorce, one of the most disputed issues is property division. The key to reaching a fair settlement is to understand what counts as marital property versus nonmarital property.

Kentucky is an equitable distribution state, which means that property is divided between spouses in a fair way – not necessarily in a strictly equal way. 

In this article, we will explore what is marital property in a Kentucky divorce: what qualifies it as such, what is excluded, and how courts in Kentucky handle property division in the event of divorce. 

Practice Areas Schedule a Consultation

Kentucky’s Property Division Law

In Kentucky, property division is governed by KRS § 403.190. The law requires courts to:

  1. Classify property as marital or nonmarital.
  2. Assign the non-marital property to each spouse respectively. 
  3. Divide the marital property in “just proportions.”

What is meant by “just proportions” isn’t always a 50/50 split. Courts will take into consideration each spouse’s contributions and financial circumstances. Understanding this is a very important step in protecting your rights and financial interests during any divorce negotiations or litigation. 

What Counts as Marital Property

Kentucky law defines marital property as the assets and debts acquired after the date on which the marriage took place, and before separation, irrespective of whose name is on the title. For example:

  • Real estate acquired during the marriage. 
  • Cars, furniture, and any household items. 
  • Bank accounts, retirement savings, and investments which accumulated during the marriage. 
  • Any business interests developed during the marriage. 
  • Any marital debts – mortgages, loans, and credit card balances. 

In simple terms, any assets which were acquired using marital funds or through joint efforts are presumed to be marital property. 

What is Considered Nonmarital (Separate) Property

Under KRS § 403.190(2), certain assets are excluded from marital property, such as:

  • Any property owned before the date of the marriage.
  • Any inheritance or gifts received by one spouse alone. 
  • Property which was acquired in exchange for nonmarital assets. 
  • Personal injury settlements for pain and suffering (lost wages do not fall under the exclusions).
  • Any assets that are excluded by a valid prenuptial agreement. 

Essentially, one spouse’s nonmarital property will continue to belong to them alone – except for when it becomes commingled with marital assets, which further complicates classifications. 

The Challenge of Commingled Property

Commingling refers to when marital and nonmarital assets are mixed. For example:

  • If you use an inheritance to make a down payment on a home owned by both spouses. 
  • If you deposit separate funds into a joint bank account. 

In the event of commingling, unless the nonmarital asset’s ownership can be traced and documented, it will lose its character of being separate. Courts will often rely on financial records and testimony in determining whether a spouse can prove that a certain asset, or part of it, remains nonmarital. 

In this complex process, legal guidance from an experienced Kentucky divorce attorney is crucial to avoid misunderstanding and mistakes. 

How Kentucky Courts Divide Marital Property

Toy house model and judge's gavel

As mentioned above, Kentucky courts don’t necessarily divide equally, but rather in “just proportions.” In doing so, judges consider factors such as:

  • How much each spouse contributed to the acquisition and maintenance of assets, including homemaking and childcare. 
  • The value of each spouse’s nonmarital property. 
  • How long the marriage lasted. 
  • The economic circumstances of each spouse at the time of the divorce. 
  • If children are involved, courts will consider custody arrangements too. 

It’s important to remember that the court’s goal is to achieve a fair and practical outcome, reflective of both spouses’ contributions to the marriage. 

Why You Need Legal Help

The classification of marital and nonmarital property is a complicated process, especially when there is commingling, or property values have changed. This is where an experienced Kentucky divorce lawyer can help. They can identify and value both types of property and negotiate or litigate on your behalf whilst protecting your rights. 

If you are getting a divorce in Kentucky and you want a fair division of your property, contact Hoffman Walker & Knauf today. Our skilled attorneys will guide you and prevent you from making costly mistakes. 

Protecting your financial future is our goal. Let’s work together to reach a fair resolution in this challenging time of your life.