Property division is a complex process that can get more complicated with multiple properties and assets. Understanding how courts decide on dividing property and what options are available to parties can help clarify any doubts that this complex process may cast.
How do courts decide?
Kentucky courts consider several factors when distributing marital properties, including businesses, between spouses. Note that the state follows an equitable distribution system, dividing marital assets fairly and equitably between spouses. Four primary considerations are the following factors:
- The length of the marriage
- The property value
- Each spouse’s contribution to the property
- Each spouse’s economic condition, including the status of child custody
While some might think it has a significant role in the court’s decision, marital misconduct, such as infidelity, does not affect the property division.
Three available courses of action
Once the court determines how to divide the business between spouses based on the available circumstances, they may order one of the following:
- Have the financially capable spouse buy the business share of the other
- Sell the business and equitably divide the proceeds between the spouses
- Co-own and jointly operate the business
Whichever course of action the court chooses depends on several factors, such as the financial capacity of each spouse and whether the parties can maintain a civil relationship. The parties can also negotiate the terms of the division if they are open to settle. If they decide to do so, the final agreement still has to go through the court’s review.
If you are wondering which business division method is most beneficial to you, you can look at your goals and the circumstances surrounding your case. These details can also help you decide whether negotiation is something you and your ex-spouse can explore.