It can be a challenge for divorcing couples to figure out how to divide assets and property and handle child custody. Determining how to fairly divide retirement assets can add another layer of challenge to the divorce process in Ohio. For many couples, their retirement savings represent the largest chunk of money that they have. If they are not careful, they could find themselves paying a hefty price as they are forced to pay penalties and additional taxes. Or they may see a substantial amount of money go to their ex-spouse.
When an Ohio couple ends their marriage, the divorce process will force spouses to divide all of their marital property and assets. Although many variables could influence the division of property, including the law, spouses have some leeway when negotiating their settlements. In some situations, two parties might exchange assets of similar value instead of splitting them. Before making decisions like these, people should carefully consider potential tax obligations and unexpected expenses.
Throughout Ohio and the rest of America, divorce among older couples has been on a consistent rise. Dubbed "gray divorce," marital splits between Americans over 50 have grown 20 percent since the 1990s. This trend is continuing upward even as divorce rates remain flat or decline among other demographic groups. The financial repercussions of a later-in-life divorce can be significant, especially when it comes to retirement savings and property division.
Ohio residents who get a divorce may discover that the process can have a negative impact on their finances, including any assets that have been set aside for retirement. In fact, people who get a divorce are more likely to run out of retirement assets than those who have never been divorced.
When the children of wealthy Ohio families are planning to get married, they may not always consider using a prenuptial agreement. This is often an option that is pushed by the parents who may be concerned about keeping wealth within the family rather than going to a spouse in case of divorce. However, children may resist it.
When going through a divorce, entrepreneurs and business owners in Ohio have it doubly hard: On the one hand, they have to deal with the reality of walking away from someone they believed they'd spend the rest of their lives with. On the other hand, they have to contend with dividing up their assets, in particular their business, which may be the largest asset on the table. Consequently, it is imperative that both parties be made aware of the value of the business to ensure that everyone gets their due.