Equitable Division Of Property In Divorce
When a couple is undergoing a divorce, they will need to resolve many points of contestation, including negotiating child support and alimony, as well as child custody and visitation. One of the most difficult areas in a divorce can be how a couple divides the assets and estate of their marriage. In Ohio, there are rules that can shape the outcome of the division.
Equitable division is the rule when it comes to the distribution of marital property in Ohio. Our courts start with a presumption that equitable means equal. However, a judge can decide that an unequal division is “equitable” based on the facts of your case.
At the law firm of Sowald Sowald Anderson Hawley & Johnson in Columbus, Ohio, our lawyers will represent your property interests in divorce and ensure that you receive everything you are entitled to under Ohio law.
What Is Marital Property?
Marital property includes all assets and debts you accumulated during your marriage such as:
- Retirement funds like pension plans and 401(k) accounts
- Family-owned businesses
- Mortgages and any other marital debt
- Real estate
- Financial accounts
- Credit card bills
- Personal belongings such as coin collections, jewelry, artwork and furniture
Often, simply dividing each individual asset and liability does not result in an outcome that protects the value of the assets or minimizes the impact of the liability. Through their experience and the use of experts, our lawyers can help you obtain a reasonable and logical distribution of assets and liabilities that maximizes the benefit to both parties.
Is It Marital Or Separate Property?
Not all property comes into question during asset division. Property division typically only looks at marital property instead of separate assets. It is possible for a spouse to acquire property that still qualifies as separate property. If a spouse earns something as a gift, through inheritance, or other methods of specifically designating a single person as the owner of an asset, the asset with likely qualify as separate property.
The Importance Of Valuations
Before you can fairly divide your assets, you need to know how much your assets are worth. If you do not have an accurate valuation of your house, car or other major assets, you may find yourself giving up more than you needed to just to keep a specific asset. By getting a fair valuation before division negotiations, you can help avoid having major regrets about the results.
What To Know About Dividing Pensions And Retirement Accounts
Pensions and retirement accounts are subject to equitable division laws, as the state of Ohio considers them marital property. Defined contribution plans such as 401(k)s and 403(b)s are easy to value. The value is the amount in the account at the date of division. Defined benefit plans like pensions are more difficult. If you wish to divide and cash out one of these accounts in your divorce, you may need to hire an outside expert to calculate its present value. If you wish to defer division to a future date, you simply divide the account equitably at some future date.
What About Gifts And Inheritances?
Gifts and inheritances, as well as assets owned prior to marriage, are not considered marital property in Ohio and typically remain the property of the recipient or owner. However, it is the responsibility of the party claiming the asset is nonmarital to adequately prove that the asset was a gift or an inheritance or was owned prior to marriage.