Many people in Ohio who get divorced are unprepared for the financial impacts. Recovering from the financial devastation that a divorce can bring might be a years-long process. There are steps that people can take to protect themselves against a potential divorce in the future.
In Ohio and across the United States, it is unfortunate that many marriages will end in divorce. When a couple decides to part ways, there are certain issues that will come to the forefront as part of the case. That includes property division, spousal support and other financial considerations. To make the situation harder, couples may have prenuptial agreements but disagree about whether it is enforceable.
Millennials in Ohio and across the country have grown up in a different reality than their parents and grandparents. Both men and women have the opportunity to attain financial independence, and this has influenced the way that millennials view marriage, divorce and prenuptial agreements.
A well-drafted prenuptial agreement has the power to do more than protect personal assets for individuals planning to walk down the aisle in Ohio. A prenup can also be used by a business owner wishing to determine how their company's assets will be handled during a marriage. For example, it could be kept as separate property, considered marital property or divided up according to a predetermined asset split plan.
People in Ohio who decide to divorce may face a number of unique and complicating factors. Every person's divorce is different, and the issues that can accompany the end of a marriage will be affected by whether a couple has children or how amicable the separation may be. In addition, financial issues can have a major effect on the divorce process. A divorce that involves dividing a business or other assets in a high net worth family may require the involvement of a number of professionals to help both parties arrive at a fair result.
For decades, alimony payments have been tax deductible for the payor and taxable income for the payee. As of Jan. 1, 2019, however, the Tax Cuts and Jobs Act will change this. Alimony will no longer be considered tax deductible to the payor starting in the new year.
There was a time not so long ago when Ohio couples who lived together without the benefit of wedlock were subject to a certain stigma. Although some hold beliefs to the contrary, a strong majority of adults are now of the opinion that living together before marriage is a good idea, and most indicate they have done so themselves. However, recent studies reveal that individuals who cohabitate before getting married run a greater risk of divorce than those who live apart until after the wedding.
Ohio couples may be interested to know that based on the results of a survey of more than 2,000 adults, the primary cause of relationship stress is money. Thirty-five percent of the respondents identified finances as the main cause of contention with their significant other.
Couples in Ohio who are planning on getting married may want to strongly consider completing a prenuptial agreement or postnuptial agreement. These legal documents can be helpful with communicating about issues, such as finances, that couples may be reluctant to discuss openly and that could sometimes contribute to a divorce.
During a divorce, an Ohio couple may find themselves completely at odds when it comes to reaching a settlement. This can be especially true if the divorce is not amicable. Ultimately, most former couples walk away thinking that their ex-spouse "won," even though this generally is not the case.