Columbus Family Law Blog

During a divorce, one of the main concerns of both parties is the division of assets. The laws vary from state to state. In an equitable distribution state such as Ohio, assets are divided fairly based on cash value, with an equal division as a starting point to work from. However, handling a life insurance policy held by one of the parties might confuse both policy holders and beneficiaries alike.

Another consideration is the original purpose of the term life policy. If it was intended to help support the children in the event of death, then the policy holder might consider a transfer of policy ownership. However, if the policy existed to pay for expenses related to the marriage, the policy holder can then use the policy as they wish.

While some individuals may think that spouses only litigate about what assets that each party should leave the marriage with during divorce proceedings, the fact is that many spouses argue over which debt should be allocated to each spouse. Individuals who live in community property states have a more difficult time in proving that a debt should not belong to him or her because he or she is presumed to be responsible for the community debt. However, individuals in equitable division states like Ohio may be able to protect themselves from their spouses' debts.

In community property states, a spouse has to prove by clear and convincing evidence that he or she is not responsible for the debt. This legal standard is difficult to prove and goes beyond the burden imposed on plaintiffs in personal injury cases. A spouse may be able to meet this test if he or she can prove that he or she was not aware of the debt and the debt was acquired in a way that only provided a benefit to the other spouse.

When approaching a divorce, whether in Ohio or another state, most people have the expectation that it will end their relationship permanently. However, as many divorcees have learned, this isn't the case due to permanent alimony laws in their states. This type of "spousal support requires the supporting spouse to pay alimony until the other spouse passes away or remarries. There is growing opposition throughout the country that brings these laws into question.

Each state varies slightly regarding the details of permanent alimony laws. An example from New Jersey is that someone married for 10-15 may end up paying 40-50 years of alimony. The opponents to permanent alimony laws argue that this is unfair. Many describe that this is a personal entitlement program.

When an Ohio couple faces separation, they need to consider a variety of financial factors. By the time they go through a divorce, they might realize too late that they could have planned more thoroughly even before they married. Women who earn more than their husbands need to take extra precautions when protecting themselves against the financial pitfalls that can come with divorce.

A prenuptial agreement saves couples money in the long run by helping them avoid expensive litigation that can tie up their money and potentially drain resources better spent on their children or on other long-term goals. While couples who are currently married can't draw up a prenuptial agreement, they may have the option of writing up a postnuptial agreement. However, the laws surrounding these vary by state, so they will need to seek legal counsel. An important part of marriage is keeping clear communication lines open about financial issues, and a formal agreement is one way to clarify expectations.