Divorce can end the legal partnership between spouses and force them to divide property they shared previously. While property owned by one spouse can be retained, most marital and community property acquired after the wedding or before separation can be divided up. This section provides resources to help divorcing couples decide how to divide property. Louisville family law attorneys said that it includes information on how to locate hidden assets, how to locate common debts, how to find hidden asset, what to do about the family home, as well as how to deal with insurance policies. A checklist for marital property division is included as well as a sample agreement form.
Community Property vs. Equitable Distribution
Louisville Kentucky family lawyers state that there are two main systems for dividing marital property. They are equitable division and community. While equitable distribution is common in most states, approximately a third of all marital property lives in states that have community property. California and Texas are examples of this. Equitable distribution states allow the spouse with the highest income to receive a larger share of marital assets than the spouse with the lowest earnings. Community property states, however, divide marital property equally. See the Property and Debt Division FAQs and Community Property overview articles for more information.
Marital Property and Debt
Both spouses have to share the debts that result from their marriage. Sometimes, debts are not associated with one spouse. For example, gambling debts. In this case, the court may distribute the debts to any wrongdoer. Most household and general expense debts can be divided equally. You can divide even seemingly separate debts, such student loans to one spouse, depending on where you live, equally. You can contact a Louisville family attorney for more information.
Taxes and retirement funds, inheritances, divorce
It is crucial to understand how taxes affect divorce proceedings, particularly in the first year. Even if you do not have an IRA, your retirement funds and other estate planning tools may need to be divided to compensate your spouse. An order from the court called a "QDRO" may be necessary. Below you will find information about Inheritance or Divorce. Most often, inheritances are exempt from property division between spouses.
Property Settlement Agreements
Property settlement agreements between ex-spouses can be reached to avoid lengthy court proceedings. The judge will review it for equity. If it is fair, it will usually be granted. If you and your ex can agree on a particular division of marital property, it may be possible to resolve marital property disputes without going to court.
Legal Assistance
Your marital property will be divided according state law if you are planning on getting divorced. If you have substantial income, you should consider a prenuptial agreement with your spouse. If you are considering divorce, you may need to consult a lawyer. A divorce lawyer can help you decide your marital property options, and draft your settlement agreement together. This section includes a checklist you can refer to before speaking with your lawyer about marital and child custody.