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What assets can be exempted from property division?

On Behalf of | Apr 12, 2022 | High Asset Divorce |

Going through a divorce process is almost never easy. The proceedings can become even more stressful when you have a lot of assets to negotiate the division of. Emotions can run high when you want to protect what you believe is rightfully yours against your soon-to-be ex-spouse, who seems dead-set on draining you financially.

Kentucky is an equitable distribution state, which means that in most cases, courts will consider multiple factors such as education, earning potential, custody arrangements and more when determining property division. A lot can be up for discussion in terms of fairness. There are some assets, however, that may not qualify as marital property.

Exclusions to marital property

Generally speaking, marital property applies to any assets acquired by either party during the duration of the marriage. This includes things such as real estate, vehicles, furniture, money, businesses, stocks, retirement funds and other financial holdings. The courts will consider the value of all marital assets as well as whether non-marital assets commingled or affected the value of marital assets.

There are some items that courts may exclude from marital property, including:

  • Assets received as a gift or inheritance by one party
  • Assets received in exchange for assets acquired prior to the marriage or in exchange for assets received as a gift or inheritance
  • Assets acquired by a party after a decree of legal separation
  • Assets excluded from division based on a legally valid agreement signed by both parties

Even within these exclusions, there are limitations. If you are facing a high-asset divorce and are concerned that your spouse will attempt to take more than their fair share, you may want to speak to someone about safeguarding your rights to your property and assets.