Dublin Ohio Family Law Blog

The new year has arrived, and many changes from the tax law passed last year will have an impact on divorces occurring in 2019. Divorce is not an easy process in Ohio. It can be very emotional and stressful to family relationships, and involve copious paperwork. The division of property and other assets can also be difficult. The changes brought on by the tax law could add to the stress.

The changes to alimony are significant. Alimony used to be deductible for the payor and taxable for the recipient. Now, the payor can no longer deduct it, and the recipient does not pay tax on it. While this change does not impact divorces previously settled, if the settlements are modified, they could be subject to the new law.

Marriages, even good marriages, experience ups and downs. Some couples experiencing a down period that could end in divorce may decide to try a legal separation in Ohio to give them space to see if the marriage can be saved. While a legal separation is not as final as a divorce, there are still formal steps that should be taken to protect the individuals involved.

If one anticipates that the separation will last for a few months or more, there are financial considerations that need to be addressed. It is important to maintain or establish a good credit rating. It is a good idea to have one's own credit card and establish a credit history with it. Also, it's important to be aware of joint finances and to have an understanding of how they will be handled during a separation.

Deciding to end a marriage in Ohio is seldom a decision that is made lightly. While there are many concerns that go into arriving at the decision, financial concerns may be chief among them. While it can be difficult, a divorce doesn't have to spell doom for one's financial future. How assets are distributed can help to determine one's stability moving forward. Chief among these is how 401(k) accounts are divided.

Ohio is an equitable distribution state as opposed to a community property state. In a community property state assets acquired after marriage are considered owned equally by the parties and thus usually divided in that manner; in an equitable distribution state the division of assets is meant to be fair, though not necessarily equal. The variables in making that determination may include the length of the marriage, financial situation of each partner and the size of the 401(k) account. Once an amount is established, a Qualified Domestic Relations Order (QDRO) must be obtained and given to the plan administrator. This form, which can be complicated, allows the funds to be moved without incurring any tax liability or early withdrawal penalties.

Not every marriage in Ohio and across the country endure over the long term. Some statistics suggest that an many as 50 percent of marriages end in divorce. This leads to another more disturbing statistic, that over one million children a year become children of divorce. It is now widely believed that staying together for the sake of the children is not a good idea, but how divorced parents handle parenting post-divorce can be critical to how well children deal with the new family dynamic.

Co-parenting is a term heard more and more as parents try to deal with the new reality of parenting as separate but equal partners. While custodial parent arrangements still exist in many circumstances, where one parent has physical custody and primary care responsibilities, co-parenting is on the rise as parents recognize the value and importance of remaining involved in their children's lives. For co-parenting to be successful, the focus should be on the child or children and not on the prior relationship.