Factors that Complicate the Division of Assets in an Ohio Divorce

 Posted on March 31,2021 in Divorce

When you and your spouse got married, you joined your lives personally and financially. Separating your lives through divorce also involves separating your finances. The division of assets and debts is often one of the most consequential aspects of the divorce process. The fewer assets and liabilities a couple has, the simpler this process typically is. Complex assets and investments or a high net worth will greatly complicate asset division during a divorce. If you have a complicated financial situation and you plan to end your marriage, working with a skilled divorce lawyer is highly recommended.

Marital and Separate Property that Has Been Commingled  

Ohio is an “equitable division” state, which means that marital property is divided fairly between the spouses based on factors including each spouse’s property, debts, and earning potential, the duration of the marriage, and tax consequences. Only property contained within the marital estate is divided by Ohio courts in a divorce. Property that is classified as “separate property” is assigned to the spouse who originally owned the asset. Marital property is the property that was acquired during the marriage. Separate property includes property acquired before the marriage, inheritance, passive income from separate property, and property acquired after a legal separation.

Distinguishing between separate and marital property is often much harder than it initially seems – especially if the property has been commingled or blended together. For example, if you owned your home before getting married, this is separate property. However, if you used marital funds to make mortgage payments or pay for repairs or renovations, the home may be classified as marital property during the divorce.

Assets That Are Hard to Value

Whether you plan to divide assets through a separation agreement or the court divides property, an accurate appraisal of the property and debts must be taken. Valuing assets is especially difficult if the asset has fluctuating value or if there are multiple methods for valuing the asset. Examples of hard-to-value assets include:

• Art

• Collectables

• Businesses

• Professional licenses or professional practices

• Retirement accounts

• Rental properties or vacation homes

• Cryptocurrency

• Restricted stocks and stock options

• Deferred compensation

• Investments

• Brokerage accounts

Contact a Medina County Divorce Lawyer

If you are planning to divorce, it is important to start considering how you intend to divide your property. A reputable Medina divorce attorney from The Law Office of Whitney K.S. Miller, LLC can help you and your spouse negotiate a property division agreement or, if an out-of-court agreement is not possible, represent you during divorce litigation. Call us at 330-725-4114 today. We offer free consultations in most cases.

Source:

http://codes.ohio.gov/orc/3105.171