If you plan to retain an attorney to file for divorce, prepare to discuss finances when you meet. Your legal counsel will likely ask you whether there’s been any commingling of funds. This concept refers to a process whereby separate assets that you alone owned before or during your marriage get combined with your spouse’s. Assets move from being separately owned to part of the marital property when this happens.
Dividing assets in divorce can be complicated. The division of assets depends on the extent possessions and valuables are combined. If both of you contributed to purchasing the marital home or vehicles, then those assets may, by default, now belong to both of you.
Many things can be considered marital property. If one of you receives an inheritance and deposits it in a joint bank account, then it becomes marital property. If a home is purchased jointly or both you and your spouse pay for the maintenance costs from a joint account, then it too would be considered marital property.
If you combined resources to purchase a vehicle, television or major appliance, those then fall under the umbrella of marital property. Joint checking, savings or investment accounts to which you’ve both contributed are marital property. If one or both spouses take out a loan and each one benefits from it, then both parties would be responsible for paying it back.
Some ways to avoid the commingling of separate assets is for couples to have a prenuptial agreement that clearly states what is and isn’t marital property. Couples should pay joint debts with marital money. Any property that you want to keep separate should be in your name only.
It’s beneficial to keep separate bank accounts and credit cards in case you split up. Adding your spouse as an authorized user could be financially disastrous.
If you’re considering getting divorced here in Louisville, you need to understand the differences between separate, marital and commingled assets. A divorce attorney can help explain the differences between these. Your lawyer will then give you a better understanding of what type of division of assets that you can expect in your Kentucky divorce case.