posted by Attorney Monaco on Jul 19
In order to terminate a marriage, the assets and liabilities of both spouses must be divided. The first step in doing so is to identify all assets and liabilities. The second step is to exclude all assets and liabilities considered to be the “separate property” of either spouse. The third step is to value the assets and liabilities that are considered to be “marital property.” The final step is to negotiate or litigate for the best possible division of the marital property.
“Separate property” means all real and personal property and any interest in real or personal property that is found by the court to be any of the following:
(i) An inheritance by one spouse by bequest, devise, or descent during the course of the marriage;
(ii) Any real or personal property or interest in real or personal property that was acquired by one spouse prior to the date of the marriage;
(iii) Passive income and appreciation acquired from separate property by one spouse during the marriage;
(iv) Any real or personal property or interest in real or personal property acquired by one spouse after a decree of legal separation;
(v) Any real or personal property or interest in real or personal property that is excluded by a valid antenuptial agreement (also known as a prenuptial agreement);
(vi) Compensation to a spouse for the spouse’s personal injury, except for loss of marital earnings and compensation for expenses paid from marital assets;
(vii) Any gift of any real or personal property or of an interest in real or personal property that is made after the date of the marriage and that is proven by clear and convincing evidence to have been given to only one spouse.
“Marital property” means all of the following:
(i) All real and personal property that currently is owned by either or both of the spouses, including, but not limited to, the retirement benefits of the spouses, and that was acquired by either or both of the spouses during the marriage;
(ii) All interest that either or both of the spouses currently has in any real or personal property, including, but not limited to, the retirement benefits of the spouses, and that was acquired by either or both of the spouses during the marriage;
(iii) Except as otherwise provided in this section, all income and appreciation on separate property, due to the labor, monetary, or in-kind contribution of either or both of the spouses that occurred during the marriage;
(iv) A participant account of either of the spouses, to the extent of the following: the moneys that have been deferred by a continuing member or participating employee, as defined in that section, and that have been transmitted to the Ohio public employees deferred compensation board during the marriage and any income that is derived from the investment of those moneys during the marriage; the moneys that have been deferred by an officer or employee of a municipal corporation and that have been transmitted to the governing board, administrator, depository, or trustee of the deferred compensation program of the municipal corporation during the marriage and any income that is derived from the investment of those moneys during the marriage; or the moneys that have been deferred by an officer or employee of a government unit and that have been transmitted to the governing board, as defined in that section, during the marriage and any income that is derived from the investment of those moneys during the marriage.
posted by Attorney Monaco on Jul 19
Divorce courts deal with all kinds of assets such as frequent flyer miles, stock options, houses, time shares, pensions, retirement accounts, cash, savings, pets, inheritances, trusts, lottery winnings, medical licenses, family businesses, art, jewelry, antiques, guns, stamp collections and other collectibles, gifts, engagement rings, household contents, cemetery plots, country club memberships, etc.
posted by Attorney Monaco on Jul 19
The good news is that the I.R.S. generally does not consider the transfer of assets between divorcing spouses a taxable event. In general, if the divorce is the driving force behind the asset transfers, transfers can be made at will with little fear of taxation. Financial professionals advise you on the short and long term financial aspects of your divorce. Short-term issues center on liquidity - valuing and converting your assets to cash. These include stocks, bonds, retirement funds and other investments such as your marital home. Long-term issues center on retirement planning and increasing the value of your assets.
To maximize assets, realize potential tax savings, and possibly avoid later disputes, divorcing or separating couples should examine an array of factors that could impact the parties. Considerations include the deductibility of spousal support payments (also called alimony), the claiming of dependency deductions, and the tax consequences involved in the distribution of assets and the sale of the marital home.
IRS Publication 504 “Tax Information for Divorced Individuals” is a very helpful and useful reference for divorcing spouses. It provides important tax information in areas such as filing status, exemptions, spousal support (alimony), qualified domestic relations orders (QDROs), individual retirement arrangements, property settlements, community property, and legal fees and court costs. It is a good idea to discuss these complex issues with an experienced tax professional who can assist you in optimally planning the tax aspects of your divorce.
posted by Attorney Monaco on Jul 19
The British government is just now considering whether pre-nuptial agreements between couples planning to marry could become legally binding. http://business.timesonline.co.uk/tol/business/law/article4112683.ece
posted by Attorney Monaco on Jul 19
Clients often ask whether the other party will be required to pay their attorney’s fees. In Ohio, the court may award all or part of reasonable attorney’s fees and litigation expenses to either party in an action for divorce, dissolution, legal separation, annulment of marriage, or an appeal of that action, if the court finds the award equitable. In determining whether an award is equitable, the court may consider the parties’ marital assets and income, any award of temporary spousal support, the conduct of the parties, and any other relevant factors the court deems appropriate.
The court also has the ability to award attorney’s fees when there is litigation after the marriage is terminated, called “post-decree litigation.” The court may award all or part of reasonable attorney’s fees and litigation expenses to either party if the court finds the award equitable. In determining whether an award is equitable, the court may consider the parties’ income, the conduct of the parties, and any other relevant factors the court deems appropriate, but it may not consider the parties’ assets.
An award of attorney’s fees and litigation expenses can be payable in gross or by installments.