Division of Marital Property
How is marital property divided Ohio?
What does the term "during the marriage" mean?
How does the court determine how to divide the marital property?
How is the value of a marital asset determined?
A professional license is not an asset subject to valuation and division.
What about retirement accounts, pensions and other deferred compensation?
How is marital property divided Ohio?
In Ohio, each spouse is considered to have contributed equally to the production and acquisition of marital property and the property must be divided equally between the spouses. However, if an equal division of property will result in inequity to one of the spouses, then court must divide the property equitably instead of equally. "Marital property" does not include any "separate property."
What is "separate property?"
"Separate property" is any interest in real and personal property that is one of the following:
1) An inheritance received during the marriage; 2) Any interest in real or personal property that was acquired by one spouse prior to the marriage; 3) Passive income from and appreciation of property during the marriage of property acquired by one spouse prior to marriage; 4) Any interest in real or personal property acquired by one spouse after a decree of legal separation; 5) Any interest in real or personal property that is excluded by a valid ante-nuptial agreement; 6) Any personal injury award for pain and suffering; 7) Any gift of real or personal property, or interest therein, after the marriage that can be proven by clear and convincing evidence to have been given to only one spouse; 8) The commingling separate property with other property does not destroy the separate property's status as long as it is traceable.
What is "marital property?
"Marital property" means the following:
1) Any interest in real and personal property owned by either or both of the spouses that was acquired during the marriage, including retirement benefits; 2) All income and appreciation on separate property, due to the labor, monetary, or in-kind contribution of either or both of the spouses that occurred during the marriage; 3) Interest in participant accounts in state and municipal deferred compensation plans, as set forth in the applicable statute.
What does the term "during the marriage" mean?
"During the marriage" means the period of time from the date of the marriage through the date of the final hearing in an action for divorce or legal separation. If the court determines either of the above dates would be inequitable, then court may select dates that it considers equitable.
How does the court determine how to divide the marital property?
In making a division of marital property the court shall consider all of the following factors:
1) The length of the marriage; 2) The assets and liabilities accumulated during the marriage; 3) The desirability of awarding the family home, permanently or for a reasonable period of time, to the spouse with custody of the children; 4) The liquidity of an asset and the economic desirability of keeping an asset intact; 5) The tax consequences of the property division; 6) The costs of sale, if an asset must be sold to accomplish an equitable division of property; 7) Any voluntary division of property made in a separation agreement; 8) Any other factor the court finds relevant.
How is the value of a marital asset determined?
Some assets, such as bank accounts and publicly traded stock, have readily ascertainable values. If the parties cannot agree on the value of a particular asset, such as a pension, retirement account, or business interest, then appraisals must be obtained from qualified experts, which can be expensive and time consuming. If both parties do not accept the expert's valuation, then additional appraisals will be required, and the court will have to take evidence and testimony and make a determination as to the value of the property.
A professional license is not an asset subject to valuation and division.
Ohio has determined that a license or degree obtained during the marriage is not an asset subject to division; however, such a license or degree is a factor to be considered by the court when determining spousal support.
What about retirement accounts, pensions and other deferred compensation?
The retirement benefits, including IRA's, 401-K plans, pensions, deferred compensation, etc. are marital property, and subject to division by the court to the extent that the asset, or portion thereof, was acquired during the marriage.
How is Real Estate divided?
The family home commonly causes problems in a divorce. For most couples, the family home is the highest value asset of the marriage and is charged with emotion. The custodial parent may want to keep the home to provide a stable environment for the children, but perhaps that spouse does not have the ability to afford the property alone.
The family home may be difficult to value. Real estate in general is not quickly convertible to cash, and there may be tax implications for selling property. The decisions made regarding the family home will likely have long lasting consequences. Should you sell the property, or keep it until the children are out of the house? Can you afford the home in the meantime? Should you keep the home, and refinance it to buyout your ex-spouse? If so, can you afford the mortgage, taxes, insurance, and maintenance on one income? Serious and dispassionate considerations of these questions can help you avoid problems.
If you are considering a dissolution or uncontested divorce, please call 216.225.9181, Email, or use the contact form to schedule an initial consultation.