During the divorce process, you and your spouse will face many challenges when dividing your assets. One of the most challenging stages of the process for many is dividing property. If you and your spouse have a house, car, or any other property together, you will go through the process of fairly dividing anything you co-owned.
Since Ohio is not a community property state, your divorce attorney will focus on equitable distribution and dividing all property equally. While this seems fair, the process comes with many challenges. An experienced, local divorce attorney can make the process much easier to navigate.
When you are listing your assets, you will divide those assets between:
In Ohio, this doesn’t necessarily mean that jointly owned property is only that which has both names on the title. All property acquired during the marriage is considered marital property, and this includes any property that benefitted from both spouses’ contributions of time or money during the marriage.
That means that most cars and homes, even those purchased by only one spouse, are likely to be considered joint property. The only property considered to be separate is typically an inheritance received during the marriage, gifts that were given to one spouse, or any assets noted in a pre- or post-nuptial agreement. If you are confused about how certain property might be valued, your attorney can help you determine how a judge will view it during the asset division process.
The first thing you will need to do when working out how to divide marital property is to find out how much it’s worth. In some cases, such as with financial accounts, the value is easy to define. For other properties, you will likely need the help of an expert.
In many cases, your attorney will recommend that you get your house and any other property appraised so a fair monetary value can be applied. In the case of your home, you will have an appraiser determine both the fair market value (what your home could sell for in the current market) as well as the appraised value of your home and calculate that with the amount that remains on the mortgage to determine how to put a monetary value on the home, which is the equity you share. While your home is likely the biggest asset co-owned by you and your spouse (unless you own a business, which will need to be considered carefully), you will also go through this process for cars, other vehicles, and anything else of value you own. If you and your spouse have an amicable divorce, you can agree to hire an appraiser together and accept the valuation provided, but in other situations, you and your spouse may opt to hire your own experts and have your attorneys assist you in agreeing on the figures.
In Ohio, the judge will want the property to be divided equitably. Sometimes, this is easy to do, but in other cases it can be more of a challenge, particularly if you and your spouse owned a home together before the divorce. There are several options to consider:
In many cases, this is the cleanest way to divide property. You and your spouse will both get an equal amount and can begin fresh. However, this can be difficult, especially if you have children together and one spouse will have primary physical custody.
In a buyout, you and your spouse will determine the amount of equity in your home and how much each spouse is entitled to in property distribution. For example, if you have $100,000 of equity in the house, the spouse who is buying out the other will give $50,000 in assets to the other as a buy-out. This can be done in a few ways. That spouse can give that amount of another asset to the other, take on additional debt, or refinance the loan to cash out equity and give it to the other spouse. This is a great way to avoid selling the home, which can save both spouses money, and can provide some stability if there are children involved. However, one spouse may not have enough income or a high enough credit score to take on the home loan or get the necessary cash for the buyout.
This is typically a short-term solution for parties who are very amicable. You will need to share the mortgage payments, repairs and maintenance, insurance, and property taxes, so both spouses must be willing. There is quite a lot to think about in this scenario, so an experienced attorney is a must.
Navigating the complexities of property division in equitable distribution states like Ohio requires careful consideration of numerous factors. Your marriage length, income disparities, contributions, and spousal support will all come into play. An experienced divorce attorney can fight for your best interests and help you move on. If you are facing a divorce, don’t underestimate the value of experienced legal guidance to help you understand what steps to take next. If you’re going through a divorce, contact my office today.