Grasch v. Grasch

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In Kentucky, an attorney’s contingent-fee contracts should be considered marital property to be divided as part of the equitable division of the marital estate, and trial courts must apply the delayed-distribution method to determine the actual distribution of funds.Husband had an active law practice in which he had executed contingent-fee contracts with some clients. When Husband and Wife divorced, the trial court treated the contingent-fee contracts as a component of Husband’s income when received and not as property of the marital estate subject to division. The court of appeals affirmed. The Supreme Court reversed and remanded the case to the trial court for further proceedings, holding (1) a contingent-fee contract in existence during the marriage does constitute marital property to be divided in a dissolution proceeding; and (2) trial court shall apply the delayed-division method to determine the distribution to the attorney and non-attorney ex-spouses. View "Grasch v. Grasch" on Justia Law