When a marriage ends, one of the biggest questions is often what happens to the property, money, and debts the couple accumulated during the marriage. If you are researching divorce in Ohio, you may come across the terms “community property” and “equitable distribution.” Although these concepts are sometimes discussed together, they describe different approaches to dividing marital property.
Ohio does not follow community property rules. Instead, Ohio courts generally divide marital property under an equitable-distribution system. Under Ohio law, marital property is generally divided equally unless an equal division would be inequitable. The court can then make a different division when the circumstances call for it.
What Is Community Property?
Community property is a system used in certain states where property acquired by either spouse during the marriage is generally considered jointly owned by both spouses. In those states, marital property is often divided according to community-property rules when a marriage ends.
Ohio takes a different approach. Rather than automatically treating all property acquired during the marriage as equally owned, an Ohio court first determines which assets and debts are marital and which are separate. It then applies Ohio’s equitable-division rules.
What Is Marital Property in Ohio?
Under Ohio Revised Code Section 3105.171, marital property generally includes real and personal property acquired by either spouse during the marriage. This can include assets such as a home, vehicles, bank accounts, investments, and retirement benefits. Certain income and increases in value associated with separate property can also become marital property when they result from a spouse’s labor, money, or other contributions during the marriage.
Separate property is treated differently. It can include property owned by one spouse before the marriage, an inheritance received by one spouse during the marriage, certain gifts made specifically to one spouse, and passive income or appreciation from separate property. A valid prenuptial or postnuptial agreement may also affect whether property is treated as separate.
Keeping good records can be important when claiming an asset is separate property. Although commingling separate property with other property does not automatically destroy its separate character, the separate property generally needs to remain traceable.
How Does Equitable Distribution Work?
In Ohio, the starting point is an equal division of marital property. However, the law recognizes that an equal split is not always equitable. If equal division would be unfair, the court can divide the marital property differently.
When making that decision, the court considers factors that can include the length of the marriage, each spouse’s assets and liabilities, the family home and the interests of children, the liquidity and tax consequences of the property, retirement benefits, and other factors the court finds relevant and equitable.
The court also generally treats each spouse as having contributed equally to the production and acquisition of marital property. This means that contributions to a marriage are not limited to earning an income.
What About Financial Misconduct?
Financial misconduct can also affect property division. If a spouse has concealed, destroyed, dissipated, or fraudulently transferred assets, an Ohio court may compensate the other spouse through a distributive award or a greater share of marital property. Ohio law also requires spouses to fully disclose their marital property, separate property, assets, debts, income, and expenses.
Understanding Your Rights
Property division can become complicated when a couple owns a home, operates a business, has retirement accounts, received inheritances, or accumulated assets before and during the marriage. The fact that an asset is in only one spouse’s name does not, by itself, determine whether it is marital or separate property under Ohio law.
If you are considering divorce, understanding how Ohio’s equitable-distribution rules may apply to your particular circumstances can help you make informed decisions about your property and financial future.
Contact us today—an experienced Ohio divorce attorney from David Shook can review your assets, debts, financial records, and other relevant circumstances and explain how the law may apply to your situation.
