Property division can be a complex process. It can also be intimidating, as you want to protect what you want to keep. However, not all assets are worth fighting for.
Refreshing the equitable distribution principle
Ohio follows equitable distribution and ensures equal division unless it would cause unfairness. A judge considers various factors when deciding how to divide assets fairly between spouses. One of them is the liquidity of the property subject to distribution, which refers to how an asset can easily transform into cash without losing significant value.
Understanding the liquidity of a real estate property
Houses generally have low liquidity due to high transaction costs and long transaction times. If you receive the home while your spouse receives $100,000 in a savings account, the outcomes may not be equitable. In other words, you may be rich in assets but poor in cash. This can put you in a precarious financial position, especially if you run a growing business.
Weighing the reality of retaining the marital home
Retaining a marital home can drain income quickly. It comes with financial obligations you may be unprepared to face, which can include:
- Maintenance and repairs
- Property taxes and insurance
- Refinancing requirements
Before you insist on keeping the house, it is important to calculate whether your finances can sustain these demands.
Assessing your current situation
Protecting your future after the divorce requires detailed planning in the present. It is natural to want to have the home for the sake of your children or the memories. However, this decision could lead to a significant financial burden. If you are unsure how to proceed, a divorce attorney can offer the guidance you need on navigating property division.
