The end of a marriage can be overwhelming, and a common source of fear and confusion is the distribution of assets. To overcome this concern, spouses must understand the rules Ohio courts use to split marital assets and debts.
How property division works in Ohio
In Ohio, courts divide assets and debts equitably, meaning all marital property will be split fairly, but not necessarily equally. Equal division, however, is the starting point that Ohio courts typically use and apply. The starting point can vary depending on several factors. These factors include the duration of the marriage, assets and debts of both spouses, potential tax consequences of division, and each spouse’s desire to reside in the family home. These factors, and others, can lead to a fair, but unequal, division of assets
What can spouses do to prepare for the division of assets?
When a couple files for divorce, each spouse typically seeks to retain specific assets that they wish to keep. The following are critical elements of the property division process:
- Collect financial documentation: As a starting point, collect recent statements for bank accounts, retirement accounts, investment accounts, mortgage balances, credit card balances, life insurance policies, and tax returns.
- Trace separate assets: In general, assets owned prior to marriage or received during marriage by way of gift or inheritance are separate property and are not subject to division. Identifying separate property can be complex if separate property has been mixed with marital property, this commonly occurs with a home that is owned prior to marriage. Inherited or gifted money is often deposited into accounts also holding marital money. A spouse claiming separate property must find clear documentation (e.g. account statements, probate records, real estate deeds, premarital mortgage balances) to establish a claim for separate property. After documenting separate property, a spouse must avoid comingling these separate assets with marital assets.
- Review retirement accounts: Retirement accounts often have a premarital component. In Ohio, any contribution to a retirement account during a marriage will be deemed marital property subject to division. A premarital balance is separate property. Collecting documentation of separate and marital interests in retirement accounts is imperative when the asset division process commences.
- Consider a postnuptial agreement: As an alternative to divorce, and provided collaboration is possible, a postnuptial agreement may be the best option. A postnuptial agreement can provide some peace of mind by addressing property division and spousal support issues in the event of a divorce. Each spouse may then have a sense of security creating a more positive atmosphere as they work through their marital issues.
- Talk to a family law attorney: Property division can be complex and therefore challenging to fully understand. Receiving guidance from an experienced family law attorney will help a spouse understand these complexities.
Even amicable divorces have honest disputes over property division. Limiting conflict while protecting assets requires thorough preparation and professional legal guidance from an Ohio divorce attorney.