Property division is a significant aspect of divorce proceedings in Ohio, and making mistakes in this process can have long-lasting consequences.
In Ohio, property division follows the principle of equitable distribution, meaning asset division is fair but not necessarily equal. There are three common mistakes to avoid during property division in an Ohio divorce.
1. Neglecting full disclosure
Both spouses must provide complete and honest financial disclosures during property division. Failing to disclose all assets and debts can lead to an unfair distribution of property. It may be tempting to conceal assets or downplay debts. In Ohio, courts expect full transparency, and any attempts to hide assets can lead to penalties.
2. Not considering separate property
Another mistake is failing to distinguish between marital and separate property. In Ohio, separate property includes assets owned before the marriage or acquired through inheritance or gifts during the marriage. Courts typically exclude these assets from the division process. However, commingling separate property with marital assets or using separate property for marital purposes can make it subject to division.
3. Ignoring tax implications
Property division decisions can have tax consequences that are easy to overlook. Consider the tax implications of the different asset choices before you, such as real estate or retirement accounts. For example, the sale of certain assets may trigger capital gains taxes, impacting the overall value of the property. Failing to account for these tax considerations may leave you with unexpected financial burdens down the road.
According to Forbes, six out of 1,000 people filed for divorce in 2021, leading to more than 680,000 total divorces that year. Navigating property division during an Ohio divorce requires careful attention to detail and adherence to state laws. It is important to approach this process with full transparency and a thorough understanding of the process. Properly managing property division can lead to a smoother divorce for you and your ex.