Often, emotions are running rampant when a couple decides that their only option is to divorce. So very little attention is paid to anything else — at least right after the decision has been made — and that includes the financial issues that surround the end of a marriage. Some folks in Kentucky are under the misguided impression that a divorce won’t really impact their lifestyles very much. But that is often not the case, especially when there is a lot on the line and a couple is going through a high-asset divorce.
Professionals agree that the financial picture in a high-asset divorce needs to be considered very carefully to ensure a fair agreement is reached. The income of both spouses along with any debt needs to be taken into consideration since there may be a sizeable drop in household income after divorce. Kentucky is an equitable distribution state which means there are distinct factors that have bearing on who gets what and a judge may rule that not all assets and debts are to be divided equally.
Possible future income and distributions also must be given some attention. The spouses should remember to change the beneficiaries on their wills, life insurance and other accounts. This issue is often overlooked and spouses usually name each other as beneficiaries. On the flip side, some people don’t know that they may be able to get benefits from a former spouse like Social Security benefits.
Kentucky residents who may be going through a high-asset divorce need to have clear view of their finances when a divorce is final. Help can be found through a number of professionals such as an attorney, accountant and financial planner. Knowing how the law factors into the equation can be particularly helpful.