by: Robert Moore, Attorney and Research Specialist, OSU Agricultural & Resource Law Program
A well-known statistic is that one-half of all marriages end in divorce. While there is some debate as to the accuracy of this statistic, there is no doubt that many marriages do end in divorce. According to Ohio law, all marital assets are to be divided equitably in the event of a divorce. Equitable does not necessarily mean equal although an equal division of assets between the spouses is often the result. It is important to note that only martial assets are subject to the equitable division between the spouses. Non-marital assets, or separate assets, are retained by the spouse who owns the asset.
Separate assets include the following:
- An inheritance received by a spouse during marriage
- A gift received by a spouse during marriage
- Property acquired by one spouse prior to the date of marriage
- Passive income and appreciation from separate property by one spouse during marriage
The above list would seem to make it an easy exercise to determine what are marital assets and what are separate assets in a divorce. However, like many legal issues, this is often not the case. Determining whether an asset is a marital assets or a separate asset can be complicated. For example, Ohio law also provides that the following is a marital asset:
“… 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.”
So, it is possible for an asset to be partially a marital asset and partially a separate asset.
Consider the following example: Continue reading