While the emotional side of a divorce often takes center-stage, residents of Kentucky should also anticipate that there is a financial side of divorce as well. As "divorce month" -- as January is referred to -- kicks off, it is a good idea to be aware of certain financial factors that may affect individuals who are getting a divorce in Kentucky.
First of all, it is a good idea to make sure you have a throughout accounting of all of the assets. Hidden assets in a divorce could lead to unfair property division. In fact, according to one survey, 15 percent of respondents admitted to concealing a financial account from their spouse, and 14 percent were not truthful about the amount of their wages or salary. Keep in mind that asset division laws vary by state, including what is considered marital property and what is considered separate property. People must make sure they have a thorough understanding of the laws in their state.
People should also pay particular attention to joint financial accounts. Individuals getting a divorce may want to open up their own bank accounts, so that their individual earnings will not be commingled in a marital account. In addition, individuals may need to contact their credit card companies to learn more about how to remove their ex-spouse from the account or close the account entirely.
Moreover, if certain assets have a beneficiary, such as a retirement account or life insurance policy, individuals may want to update these beneficiaries to someone other than their ex-spouse. After all, individuals may not want their ex-spouse to receive the benefits of these accounts should they come to fruition.
Finances can become strained during a divorce. However tempting it may be, it may not be a good idea to tap into people's retirement funds to pay for the costs related to the divorce or to pay off liabilities owed on joint accounts. After all, it is important to have an adequate amount of money set aside for retirement, an amount which could be impacted by a divorce even without depleting the accounts.
These are only some financial considerations to keep in mind when getting a divorce. Individuals in Kentucky should not hesitate to seek the advice they need to make sound legal and financial decisions as they move forward with a divorce and into their new lives.