Dividing property during a divorce can be tricky, especially with retirement accounts and investments.
These accounts might count as marital property, depending on when and how spouses acquired them.
What is marital property?
Ohio law separates property into two types: marital and separate. Marital property includes things spouses obtain during the marriage. Separate property includes things owned before the marriage or received as a gift or inheritance. Retirement accounts and investments accumulated during the marriage are usually considered marital property.
What counts as contributions?
Courts examine what spouses add to a retirement account during the marriage. For example, money contributed to a 401(k) or pension during the marriage usually qualifies as marital property. Money in the account before the marriage remains separate property.
How are accounts valued?
Ohio courts determine the value of all retirement accounts and investments to divide them fairly. This process identifies which parts of the accounts are marital and which are separate. Tools like Qualified Domestic Relations Orders (QDROs) divide these accounts without tax penalties.
What affects how property is divided?
Several factors influence how retirement accounts are divided, such as the length of the marriage, each person’s financial situation, and any agreements between the spouses, including prenuptial and postnuptial agreements. Courts aim to divide property fairly, but this doesn’t always mean an even split.
Moving forward with your finances
Understanding how Ohio treats retirement accounts during a divorce helps individuals prepare to make informed decisions. Staying organized and planning ahead simplifies the process and supports future financial stability.
