How to Protect Your Assets During a Divorce in Kentucky

Man and woman on stacks of coins being divided

Combining finances after marriage can greatly simplify various aspects of managing your household, such as paying bills, budgeting, and saving for future goals. However, this merging of financial resources can also present challenges, especially if the relationship takes a downturn and leads to divorce. When assets are commingled, they can become more challenging to separate, potentially complicating the divorce proceedings. That is why it is important to take proactive steps to help safeguard your financial interests during a divorce.

Take Inventory of Your Assets

house on a gavel block with scales of justice nearby

To effectively protect your assets during a divorce, you must have a solid understanding of everything you own. In Kentucky, the legal framework operates under equitable property laws. This means that when it comes time for the court to divide marital property, the division will be fair but may not necessarily result in an equal split of 50/50. One of the first and most important steps is to take a detailed inventory of all marital property and any separately owned assets to prepare for this process. This inventory should encompass a wide range of items, including:

  • Marital home
  • Other real estate
  • Financial accounts
  • Personal property
  • Retirement benefits
  • Debts

Separate Bank Accounts

If you currently hold only joint accounts with your spouse, opening one or more individual accounts in your own name may be beneficial. This will provide you with greater financial independence and control over your personal finances. However, it is important to approach this situation with open communication. This means informing your spouse about your decision to open these individual accounts. This transparency will help both of you coordinate any financial obligations, particularly if monthly expenses or automatic payments are deducted from the joint account.

Close Shared Credit Cards

If you and your spouse currently share credit cards that are jointly held in both your names, it would be wise to start closing those accounts. Along with closing these joint accounts, work together to divide the outstanding balances and pay them off. This will help establish a clear understanding of your shared financial responsibilities. From there, consider opening credit cards in your name, or if you already have personal credit cards, begin using only those accounts for your purchases.

When you start using your own card, it can help effectively separate your finances, which makes it easier to identify and allocate marital debts. This separation is particularly important if you or your spouse incur any new debts, as it ensures that those debts can be assigned to the individual responsible for them. This practice not only promotes financial clarity but also aids in maintaining a fair financial environment between you and your spouse.

Consult an Experienced Divorce Attorney

An experienced divorce attorney can play a crucial role in ensuring a fair property division during a divorce, especially when complex situations arise, such as when your ex-spouse empties your joint savings account, takes control of retirement assets, or incurs significant debt in anticipation of the divorce. In these cases, a skilled divorce attorney can help you navigate the difficulties of your financial situation, advocate for your rights, and modify the settlement to reflect these changes accurately. More importantly, they will work hard to ensure you have access to the necessary funds for both living expenses and legal costs throughout the divorce process.

Contact Hoffman Walker & Knauf To Learn More About Protecting Your Assets in Kentucky

If you are considering filing for divorce in Kentucky and want to learn more about protecting your assets during the process, contact Hoffman Walker & Knauf today and speak with an experienced Kentucky divorce attorney.