Divorce can feel like a storm, and deciding who gets what often sits at the center of that storm. Many couples in Kentucky look for a calmer path — one that lets them settle property issues without stepping into a courtroom.
At Schaffner Family Law, we focus on guiding Northern Kentucky families down that calmer path, pairing clear advice with tough advocacy when needed. In this blog, we’ll walk through how assets are sorted in Kentucky divorce mediation, showing you why this method can lift some weight off your shoulders.
Divorce Mediation in Kentucky
Mediation brings in a neutral professional who meets with both spouses and helps them work out every piece of the divorce puzzle. The process covers more than bank accounts. Couples often discuss:
● How to divide assets and debts
● Parenting schedules and decision-making for children
● Spousal maintenance
● Child support payments
Instead of two sides “winning” or “losing,” mediation invites both voices to be heard so the final deal feels reasonable for each party.
Key Steps in Divorce Mediation
The mediation road has several checkpoints. Knowing what comes next can make the trip less stressful.
Selecting a Mediator
Choose a mediator with family law expertise and strong conflict-resolution skills. The mediator should not favor one spouse over the other and should keep the discussion’s progress focused.
Initial Consultation
During the first meeting, the mediator lays out ground rules, asks about each person’s goals, and explains time frames.
Negotiation Sessions
Next comes one or more sessions where topics are tackled one by one. The mediator steers the conversation, calms tension, and helps each person voice concerns without interruption.
Drafting the Agreement
Once an agreement is reached, the mediator or one of the attorneys writes a settlement agreement spelling out every term in plain language. Both spouses then review the draft with their attorneys to check for clarity and fairness before signing.
Finalizing the Divorce
The signed agreement then heads to the family court. If the judge finds the terms legal and fair, the divorce is granted without a trial, saving you time, money, and the stress of litigation.
Identifying and Valuing Assets
Before dividing anything, couples must list what they own and owe. This step lays the groundwork for fair results.
Marital vs. Separate Property
Kentucky law labels most property bought during the marriage as marital, even if only one name is on the title. Examples include:
● The family residence
● Paychecks deposited into a bank account during the marriage
● Retirement savings earned after the date of marriage
● Vehicles purchased after the date of marriage
● Joint credit card balances
Separate property includes items owned before the date of marriage, inheritances, and gifts made to either spouse, even if during the marriage. A valid prenuptial agreement can also shelter assets as separate. If separate property increases in value during the marriage, like a retirement account, that increase in value may be deemed marital property.
Commingling of Assets
Mixing separate and marital funds can blur the lines. Picture a pre-marital savings account that later receives both spouses’ paychecks. Tracing who owns what can become tricky, and sometimes all or part of that account can be deemed marital property if it is impossible to adequately trace what portion is nonmarital.
Asset Valuation
After sorting the property into the right category, the parties must provide or agree on the value of each of their assets. Real estate might call for an appraiser, while business interests may need a valuation professional. Retirement accounts often require calculations from a CPA or actuary to reflect present value and tax consequences. It is important that the parties disclose the value of each and every asset to ensure both parties and their attorneys have the big picture, and no asset is left out of the division process.
Kentucky’s Equitable Distribution Principles
Kentucky follows equitable distribution under Kentucky Revised Statutes 403.190, which aims for fairness and equitability, not strict 50-50 splits. Courts—and by extension, mediators—take several factors into account, such as:
● Length of the marriage
● Each spouse’s financial and non-financial contributions
● Income and earning capacity of both parties
● Parenting arrangements and housing needs for children
The same fairness test applies to debts, meaning credit cards and mortgages are part of the distribution conversation, too.
Common Asset Division Issues in Divorces
Some items spark more debate than others. Knowing the hot spots can help couples brainstorm answers sooner.
The Marital Home
Deciding whether one spouse stays, the house is sold, or the couple co-owns for a set period of time is a difficult decision to make, especially when children are involved. If both parties have a marital interest in the home’s equity, one party may remain in the marital home, but must pay the other spouse their marital share in exchange. Other spouses may elect to sell the home, then must decide how to divide the proceeds.
Retirement Accounts
If the funds in a retirement plan are awarded to more than one spouse, the plan must be divided, and doing so requires the entry of a Qualified Domestic Relations Order (“QDRO. This is a court order that governs the division of certain retirement plans upon a divorce. Some parties may elect to keep their own individual retirement plans and forego any division.
Business Ownership
If one or both parties have an ownership interest in a business, the mediator may bring in valuation professionals to determine the fair market value of the business. This can help the parties understand their marital interests in the business, which then makes the division process much clearer.
Debts
The division of debts is just as important as the division of assets. This means credit cards, medical bills, and loans all land on the bargaining table. Even if a debt is held in one spouse’s name, it will still be considered marital if the debt was incurred during the marriage.
Asset division can be complicated and feel overwhelming, but understanding all your options is key to ensuring the division is fair and equitable.
Benefits of Divorce Mediation for Asset Division
Mediation shines for several reasons that reach beyond dollars and cents.
● Time and cost savings: Fewer court filings and hearings mean lower legal bills and faster results.
● Stress reduction: Sitting at a conference table feels less intense than sitting on the witness stand.
● Control: Couples work to shape their own agreement, with guidance from their attorneys, instead of letting a judge decide.
● Privacy: Discussions stay confidential behind closed doors rather than entering the public court record.
● Custom solutions: Parties can agree to whatever they choose, so long as it is not unconscionable.
Considering Mediation? Contact Us Today.
Our team at Schaffner Family Law pairs practical advice with the grit needed to protect what matters most to you. Whether your marital estate includes a modest home or multiple business entities, we stand ready to help you reach a fair result through mediation. Call us at (859) 577-7552 or use our online form to schedule a confidential consultation today. Your future deserves thoughtful planning, and we’re here to guide that process so you can move forward with confidence and peace of mind.