Selling a House During Divorce in Kentucky

Divorce and the family home: an overview

When a marriage ends, the family home is often the largest asset to be addressed. Kentucky law treats property division as part of the dissolution process. This article provides a general overview. It is not legal or tax advice. Every situation is different, and you should discuss your specific circumstances with a qualified Kentucky family law attorney and your tax professional.

How Kentucky law treats the marital home

Kentucky follows equitable distribution under KRS 403.190. Under Kentucky family law, marital property is generally divided equitably, which can differ from an equal split, depending on the court's consideration of the factors in KRS 403.190. The court considers several factors, including each spouse's contributions, the duration of the marriage, and the economic circumstances of each spouse.

KRS 403.190 generally presumes property acquired by either spouse after the marriage and before a decree of legal separation to be marital property, subject to the exceptions identified in the statute. Property classification can become more complicated when a home was owned before the marriage, received by gift or inheritance, acquired in exchange for separate property, or increased in value during the marriage. A Kentucky family law attorney should advise the parties about how a particular property may be classified.

Options for the marital home

Depending on the circumstances and any court orders, the parties may agree, or the court may decide, how the family home is to be handled. The outcome in any situation depends on its specific facts, and the parties should work with their family law attorneys to understand what is possible. The following are examples of arrangements that may arise through agreement or court proceedings, not guaranteed outcomes:

• Sell and divide proceeds. The home may be listed and sold, with the net proceeds divided between the parties. This may be an option when neither spouse wants to keep the home or when selling is the most practical path in a particular case.
• One spouse buys out the other. One spouse may keep the home and pay the other their share of the equity, whether through the overall property settlement or as otherwise agreed or ordered.
• One spouse stays temporarily. A spouse, especially the custodial parent of minor children, may be permitted to remain in the home for a period before it is sold, depending on the circumstances and any court order.

What happens may depend on factors such as whether minor children are involved, each spouse's financial ability to maintain the home, and the overall division of assets and debts. Because every situation is different, the parties should discuss their specific circumstances with their family law attorneys rather than relying on general descriptions.

Court orders and the listing process

A divorce settlement, court order, or other legal circumstances may affect whether and how a property can be listed or sold, who has authority to make decisions, and how sale proceeds are handled. Before listing a home involved in a pending divorce, the parties should ask their family law attorneys to identify any agreements or court orders that affect the real estate transaction. The real estate agent can then handle the listing and sale within those instructions.

Professional boundaries and where to get help

Real estate agents, including Daniel at Make Kentucky Home Group, can help with the practical aspects of listing and selling the home. However, a real estate agent does not provide legal advice about divorce, property division, or what terms to accept in a settlement. Those questions should be directed to a Kentucky family law attorney.

Similarly, questions about tax consequences should be directed to a qualified tax professional or CPA.

Disclosure and the listing

When a court is involved, the listing agent should be informed so they can structure the transaction correctly. The sellers disclosure form under KRS 324.360 applies to sales and purchases of single-family residential real estate where a person licensed under KRS Chapter 324 receives compensation. Certain transactions are excepted under subsection (7), including residential new-home purchases where a warranty is offered, sales at auction, and court-supervised foreclosures. Sellers should confirm which disclosure requirements apply to their transaction with their agent and, when legal guidance is needed, an attorney.

What Daniel can help with

When the time comes to list, Daniel can help with pricing the home based on current market conditions, coordinating showings, managing offers, and guiding the transaction through to closing. Questions about how sale proceeds are to be distributed should be handled according to the parties' legal agreements, applicable court orders, and guidance from their attorneys.

If you are going through a divorce and need to understand your options for the family home, start by talking to your attorney about what is possible in your situation. When you are ready to discuss the real estate side: market value, listing strategy, and the selling process, Daniel is here to help.

Next step

Whether you know what you need or are just beginning to explore your options, a conversation with Daniel can help you understand the real estate side of your situation without pressure or obligation.