During a divorce, the state will typically divide property in a way it considers fair. However, this can be difficult to accomplish if a divorcing couple owns a cabin or a home in another state. It is important to learn whether or not Kentucky has jurisdiction over properties in other states and how such a problem is often resolved.
How do Kentucky courts handle property in other states?
Kentucky follows a concept known as “equitable distribution,” which means the court divides marital property with equity in mind. Bear in mind that equity is different from equality. While the latter often means a 50/50 split, the former instead focuses on giving each spouse shares the court deems just.
Under Kentucky Revised Statutes Section 403.190, the court must first classify property as marital or nonmarital. Afterwards, it assigns each spouse’s nonmarital share and then divides the marital portion. This also applies to out-of-state property. A Kentucky court can:
- Decide if the property is marital or nonmarital, and whether marital money increased its value.
- Determine the property’s value and give the other spouse an offset (for example, more Kentucky assets if one spouse keeps the out-of-state home).
- Order a spouse to take action, such as signing over the deed or selling the property and dividing the proceeds.
Though Kentucky courts cannot control the title to real estate in other states, they do have jurisdiction over spouses. However, if spouses defy court orders, the court can enforce them to take action through contempt.
What is the significance of equitable distribution?
Equitable distribution matters because it guides how a Kentucky court divides marital property in a way the court views as fair, though this does not always mean equal. Under Kentucky Revised Statutes Section 403.190, the judge determines which assets are marital or not before determining the value of the marital property. The court then divides the marital portion fairly after considering factors such as:
- What each spouse contributed to getting the property, including being a homemaker
- How much property each spouse receives
- The duration of their marriage
- Each spouse’s financial situation at the time of the property’s division
This approach becomes especially important with out-of-state property. Even if Kentucky cannot directly change another state’s land title, the court can still assign the property’s value and balance the division with offsets or sale orders.