Whether you’re concerned about who gets the house, how retirement accounts will be handled, or what happens with debts, you will want to know how property division works in an Ohio divorce.
The process of splitting assets and debts is guided by a principle called equitable distribution. However, that does not mean everything gets split down the middle. Find out how the property division process works.
What Counts as Marital vs. Separate Property?
There are two types of property: marital or separate property. The courts will take steps to determine which category the assets fall into:
Marital Property
This type of property includes anything you and your spouse acquired during the marriage. This could include:
- Your home or any real estate you own together.
- Bank accounts, retirement funds, and investments earned or built up while married.
- Vehicles, furniture, and other personal items purchased during the marriage.
- Debts, such as credit card balances or loans taken out while married.
In short, if earned or bought during the marriage, it will be classified as marital property. That can happen even if only one spouse paid for it.
Separate Property
On the other hand, this property belongs to one spouse. In most cases, it is not divided in a divorce. Some examples may include:
- Property owned before the marriage.
- Inheritances or gifts given specifically to one spouse.
- Personal injury settlements, if they do not include compensation for lost wages during the marriage.
Unfortunately, things can get complicated if separate property is mixed with marital property. For example, if one spouse inherited money but deposited it into a joint account, it might lose that separate status.
How Are Marital Assets Divided?
Now that you know how property is categorized, how are marital property separated?
Ohio courts will divide marital property in a way considered fair, not necessarily equal. That is known as equitable division.
There are a variety of factors when it comes to equitable division. These can include:
- The length of the marriage: Courts may lean toward a more equal division for longer marriages. On the other hand, in short marriages, each spouse might leave with what they brought into the relationship.
- Each spouse’s income and earning potential: If one spouse earns more or has greater future earning potential, the other might be awarded more assets to balance the division.
- Custody of children: In cases where one spouse has primary custody, they may be awarded the family home or other assets to maintain stability for the children.
- Contributions to the marriage: Courts look at more than wages or earning potential. Contributions like being a stay-at-home parent or supporting a spouse through school are also taken into account.
- Age and health: If one spouse is older or has health issues that limit their earning capacity, they may receive a larger portion of the marital property.
- Debts and liabilities: Marital debts are divided just like assets. If one spouse is in a better position to handle certain debts, they may take on more responsibility in that area.
What happens in cases of financial misconduct? In situations when one spouse wastes marital assets, like gambling or spending recklessly, the court might adjust the division to compensate the other spouse.
What About Retirement Accounts and Pensions?
In many cases, retirement accounts are some of the largest marital assets. In the Buckeye State, these are divided using a Qualified Domestic Relations Order (QDRO).
With that, the funds are to be split without triggering taxes or penalties. If you’ve spent years saving for retirement, you will want to know how this process works so you can make sure the division is handled in the proper manner.
Learn More About the Marital Division Process
If you’re going through a divorce, you will want to know how property division works in an Ohio divorce. You might want to consider working with an experienced attorney or mediator to protect your interests.
If you would like to learn more, reach out to the legal team at Axelrod Law Office in Lake County, OH. Call our office at (440) 271-8126 or submit a contact form to schedule a free, confidential legal consultation.