As an equitable distribution or common law state, Paducah is in the majority. This means that in a divorce, the marital property should not always be divided equally because it is presumed to be owned by both spouses. If the spouses are unable to agree on a property distribution, the court may also divide the assets. There are many factors besides only property. The division of debt, money, assets, retirement benefits, savings, checking, and any other accounts will also be handled by the court. Paducah employs a common law property settlement, unlike some states that have community property laws.
Property owned separately and jointly
Identifying whether a piece of property is marital or separate is the first stage in the property division procedure. Most assets and obligations a spouse accumulates during their marriage are considered marital property. If one spouse received the property during the marriage through a gift or inheritance, it is considered distinct property. If your spouse invested a lot of time trading stocks in solely your name account and made sizable profits, those profits may be considered marital property.
Examples of Separate Properties
- Prior to marriage owned property.
- If a spouse received a valuable item during the marriage that wasn’t a gift from their partner.
- selling separate property while married
- Specified property in a prenuptial agreement
- By altering the title of a property from an individual to joint ownership, a spouse can also convert separate property into marital property. In this situation, a court would typically assume that the spouse intended to give the property to the marriage.
Example of Marital Property
- whatsoever assets either spouse has accumulated throughout the marriage (retirement accounts, money, real estate, etc.)
- property acquired through a joint account during the marriage, such as real estate or a car
- Due to monetary or labor-driven enhancements, separate property that was previously owned by the spouse has improved in value.
It is possible to combine separate and marital property—a practice known as “commingling.” Some spouses combine their different assets on purpose, while others do so out of simple negligence. A residence held by one spouse alone can become marital property if both couples pay the mortgage and other costs; a premarital bank account belonging to one spouse can become marital property if the other spouse makes payments to it. The judge will have to determine whether any or all of the commingled property was a gift to the marriage or whether the original owner should be compensated in full or in part if the couples are unable to agree on who owns what. If you have a commingling issue, these scenarios can be extremely complicated, and you will probably require a lawyer’s assistance in sorting things out.
Property Division
Couples can divide assets by selling property and dividing the revenues, allocating specific goods to each spouse, or by selling property and offering an equalizing payment if one spouse receives significantly more than the other. It may make sense to maintain the family home until the kids graduate from high school, for example, or if you have an investment property that you don’t want to sell because you believe its value will rise. They can also agree to continue to own property together. Some couples decide to continue holding property together despite the continued financial entanglements, which makes this option unappealing to the majority of people. This means that in a divorce, the marital property should not always be divided equally because it is presumed to be owned by both spouses. In Paducah, a separation agreement can be used to distribute a couple’s assets and obligations during a divorce. The parties negotiate independently, but the court could still disapprove of the entire agreement or some sections of it (extremely unfair). If the spouses are unable to agree on a property distribution, the court may also divide the assets. The judge takes into account the following variables while dividing marital property:
- Contributions made to gaining marital property by each spouse, including those made by a spouse who stayed at home
- circumstances of each spouse, including whether it is preferable for the custodial spouse to be in the family home with the children
- length of the marriage
- The cost of the assets given to each spouse
Dividing Paducah’s debts
The only three kinds of debts that married couples might accrue are credit card debt, medical debt, and mortgage debt. However, how these debts are shared can significantly affect a person’s financial situation after a divorce. One approach for each spouse to make sure that the split of assets and debts is fair is to have a thorough awareness of how debts are handled in Paducah. Debt can be divided by the courts depending on a variety of things, like…
- Liability and debt of each spouse
- The financial situation of each spouse
- the basis for the debt, such as whether one spouse foolishly incurred the loan, such as gambling debt.
A creditor may continue attempting to collect from you even if your spouse is mandated by a court order to pay a debt. Use the court order to get your name taken off the account as protection for yourself.
