Divorce is a complex process, especially when it comes to dividing assets and debts, even if your divorce/dissolution is amicable or a Collaborative Divorce. One crucial concept that often arises during divorce proceedings in Ohio is "separate property." Understanding what constitutes separate property, and how it affects the marital balance sheet, is essential. Additionally, it's crucial to be aware of how assets transferred into a joint account can sometimes be traced and determined to remain separate property.

What is Separate Property?

Separate property in Ohio generally refers to assets or debts that are not considered part of the marital estate, and therefore, are not subject to division during divorce. These assets and debts are typically owned or incurred by one spouse individually, either before the marriage or acquired during the marriage under specific circumstances.

Common Examples of Separate Property

1. Pre-marital Assets

Any assets or debts owned by either spouse before the marriage are typically considered separate property. This can include savings accounts, real estate, or personal belongings.

2. Inheritance

If one spouse receives an inheritance during the marriage, it is often considered separate property, provided it is kept separate from marital assets.

3. Gifts

Gifts given to one spouse by a third party, such as a family member or friend, are usually classified as separate property.

4. Property Acquired After Legal Separation

If a couple has legally separated, any assets or debts acquired afterward are considered separate property.

The Tracing Process: Keeping Separate Property Separate

Maintaining the "separate" nature of these assets and debts is crucial. While it may seem straightforward, things can get complicated if separate property is commingled with marital property. For example, depositing an inheritance into a joint account could potentially convert it into marital property.

However, Ohio recognizes the tracing process, which allows individuals to demonstrate that a commingled asset could still be considered separate property. This often involves providing a clear and detailed record of the source of the separate property, as well as how it was used or maintained over time.

Seeking Legal Guidance

Determining what qualifies as separate property and how it affects the marital balance sheet, especially in cases of commingling, can be complex. Legal advice from a divorce attorney with expertise in Ohio family law is invaluable in ensuring that your rights and assets are protected during the divorce process.

In conclusion, I am not an attorney, but in many cases where I perform Financial Mediation, circumstances like this arise and we need to understand the concepts. Fortunately, in financial mediation, Collaborative Divorce, or any amicable situation, a couple can agree to consider property marital or separate. It’s not written in stone that it must be considered separate property just because it qualifies as such.

Working with a CDFA® from the beginning of the process can help you have a better understanding of what to expect financially. And, of course, seeking legal advice before signing a legally binding document is always prudent.

Understanding Separate Property in Ohio Divorce and the Importance of Keeping it Separate