A family law case involving intense emotions and intimate relationships can pose a number of challenges. If there is money involved, the situation may become even more complex. The relationship between financial concerns and family law cases is unfortunately often intertwined.
Financial family law matters can be difficult to navigate without an experienced family lawyer on your side. The lawyer will also treat your case as if it were their own, knowing how important your family matter is to you.
Family Financial Law Overview
Your financial well-being is one of the most important things in your life. Having financial security and being able to support yourself and your family is something you should not take for granted. An unprepared or uneducated person cannot afford to be involved in a family law matter involving their finances. There are a number of family law cases that may involve your finances, including:
- Retirement
- Spousal support
- Prenuptial agreements
- Child support
- Qualified domestic relations orders
- Divorce and division of marital property
- Retirement
Family law cases involve either a financial consideration or a direct impact on your finances. Understanding these family law cases is a good first step to protecting your finances, as is hiring an experienced Ohio family law attorney.
Finances & Child Support
In Ohio, parents are legally responsible for providing for their children. Regardless of whether you live with your child, you have this responsibility. Your child’s other parent may receive child support if you do not have primary physical custody. In order to properly calculate child support, it is important to understand that income plays a substantial role. Your income from your job, investments, and other sources will likely be considered in determining the amount of your child support order. You may need to submit your paystubs, tax returns, and bank statements to the family court in order to prove your finances. Generally, child support is paid on a monthly basis and can be adjusted if your financial circumstances change.
Finances & Alimony (Spousal Support)
In Ohio, divorced spouses may receive support payments from their spouses before and after the divorce. It is only possible to order spousal support when it is necessary. Once a spouse has become financially independent, spouse support should cease. In determining the amount of spousal support to be paid and its duration, a judge considers many factors. Some of these factors include:
- Ages and conditions of the parties’ bodies, minds, and emotions
- Both parties’ retirement benefits
- How long the marriage lasted
- Living standards established during the marriage between the parties
- Parties’ educational backgrounds
- Any court-ordered payments by the parties, including their assets and liabilities
- Whether either party contributed to the other’s education, training, or earning ability, including but not limited to any party’s contribution to the other’s professional degree
Division Of Marital Property During Divorce
It is common for divorce to have a devastating effect on a person’s finances. There is a tendency for at least one side to walk away with a significantly smaller amount of money and assets, even in cases where the divorce is resolved amicably. In spite of Ohio being an equitable asset state for divorce, your property will not be split 50/50 between you and your spouse. As a result, the court divides the money, assets, and debt fairly between you and your spouse. Divorce may result in the division of the following types of property:
- Bank accounts
- Real Estate
- Businesses
- Stocks
- Bonds
- Vehicles
- Other investments (Mutual Funds, Annuities, etc.)
Divorce proceedings do not necessarily allow the distribution of all property. Divorce will likely not result in the division of property acquired before marriage. Distribution may not be possible for the following types of property:
- Inheritances
- Gifts
- Personal injury awards
- Passive income from separate property
- Property excluded by a Prenuptial Agreement
Qualified Domestic Relations Orders
In the event of a divorce, 401ks, Roth IRAs, pensions, or other financial products that have gained value during the marriage may be divided between you and your spouse. Distributions will only be made based on the increase in value experienced during the marriage. You may be forced to give up part of your 401k gain of $40,000 if your 401k was worth $10,000 before you got married and now is worth $50,000 after you got married.
Neither you nor your spouse will be able to accomplish this without filing what is known as a qualified domestic relations order (QDRO). A portion of the proceeds of this financial product is to be distributed to a specific person as a result of this legal document. For a QDRO to be valid, it must be drafted correctly and filed with the appropriate court.
Prenuptial Agreements
Upon divorce in Ohio, marital property is distributed equitably. Divorce laws and judges determine what is considered marital property. A prenuptial agreement, also known as a “prenup,” is an agreement between two people that describes how specific issues will be resolved in the event of a divorce. Prenuptial agreements can be drafted before or during a marriage. If the parties dissolve their marriage, a prenuptial agreement can specify how issues such as alimony, property division, and divorce costs will be handled. For a prenuptial agreement to be valid, there must be complete transparency before signing. A prenuptial agreement can be considered invalid if a spouse is dishonest or does not disclose assets before signing it.
Retirement Plans
Divorces are most common within the first ten years of marriage. Consequently, many couples fail to consider how divorce will affect their retirement benefits. It is important to know that retirement benefits earned during your marriage may be subject to division if you divorce. This can include:
- Pensions
- Savings
- Deferred compensation
- IRAs
- 401k
If you accumulated retirement benefits before marriage or after legal separation, you may not be able to distribute them. An agreement that protects your retirement benefits can also be included in a prenup.
Frequently Asked Questions
How Will Divorce Affect My Finances?
If you do not have a prenuptial agreement, a divorce will most likely affect your finances. The law in Ohio says that property acquired during a marriage may be divided equitably between you and your spouse. In the event of a divorce, real estate, investments, savings, and retirement benefits may be impacted. When the court finds that spousal support is fair and necessary, it may be ordered. In the same way, if there are children involved, you may also have to pay child support. As long courtroom battles can cost thousands in legal fees, litigation costs should also be considered for contentious divorces.
Is Spousal Support Forcible?
Yes. Spousal support payments may be ordered by the court during and after a divorce if certain conditions are met. In the absence of an agreement between you and your spouse, the decision regarding whether or not to pay spousal support will be made by the judge handling your divorce. Although spousal support is primarily determined by need, the judge will also consider a number of other factors when determining the amount and duration of the support. An experienced Ohio family law attorney can evaluate the circumstances surrounding your marriage and finances and determine whether or not you need to pay spousal support based on the circumstances.
How Much Will Child Support Payments Be?
There are several factors that will determine whether or not you will be awarded child support. Usually, child support is awarded to the custodial parent (the parent with whom the child lives) based on both parents’ income. When calculating a child support order, the income of the custodial and non-custodial parents will both be considered. The non-custodial parent will likely be unable to receive child support from the custodial parent if they do not have primary physical custody. Support for children is usually paid monthly and lasts until they reach 18 or graduate from high school. You and your spouse can also agree on child support, which is important to remember. Upon that happening, the agreement will become enforceable for child support and finalized by the court.
Is Child Support Forcible?
Yes. It is likely that you will be ordered to pay child support to your spouse if you do not have primary physical custody of your children. There is a possibility that your spouse doesn’t want child support; if that’s the case, you won’t be responsible for it. However, if they ask the court for child support payments, the court will calculate the amount based on both your incomes. Formulas are often used, but other factors like employment experience, education level, and special needs of the child may also be taken into account. In the event that you fail to pay support, your driver’s license will be suspended, your wages will be garnished, and you may face jail time.
Can My Spouse Be Given Part Of My Retirement Benefits?
Yes. Your spouse may be entitled to a portion of your retirement benefits if they accrued during your marriage. Divorce distribution will only apply to your retirement benefit increase during your marriage. Your spouse cannot receive any benefit accrued before the marriage or after a legal separation. Retirement benefits can be protected from being divided in a prenuptial agreement that excludes them from distribution upon divorce.
Do I Need A Prenup For My Marriage?
In some cases, prenuptial agreements can seem like a bad omen to couples. As the stigma surrounding prenuptial agreements begins to fade, more couples are open to the idea. If you or your spouse have significant assets going into your marriage, you should consider a prenuptial agreement. Even though no one wants to think about getting divorced, it’s smart to at least establish some ground rules that will protect you both in the worst-case scenario. In the event of a divorce, prenuptial agreements, sometimes referred to as “postnups,” may also be a consideration if you and your spouse wish to wait until after you are married to decide how the finances will be handled. Whether a pre-or post-nuptial agreement is appropriate for you depends on your circumstances, so only an experienced family law attorney can advise you.
Do I Need An Ohio Divorce Lawyer To File For Divorce?
You are not required to hire an attorney to handle your divorce. The sooner you hire one, the better as you will have a more secure financial future. If you don’t have the right counsel during this time, you could lose almost everything you own during the divorce process. If you don’t have a lawyer, and your spouse does, this is especially true. You should still have a lawyer review the proposed agreement, even if you and your spouse are on good terms and agree, to make sure your rights are protected.
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