In Ohio tech, your equity is often your most significant achievement. If you entered your marriage already holding shares or options, you likely view them as yours alone. However, the distinction between separate and marital property does not always have definitive boundaries.
Categorizing the business growth
In Ohio, the law recognizes that the initial value of your pre-marital assets remains separate. However, any increase in value due to active appreciation can count as a marital asset subject to equitable distribution. A judge may rule that the spike in your net worth during the marriage belongs to both you and your spouse.
Differentiating active from passive growth
If you enter the marriage with equity, the courts presume that the inception value of those shares is your separate property. Maintaining that status requires a clear paper trail from the pre-marital acquisition to the present day.
When it comes to an increase in value during the marriage, the party claiming that the appraisal is marital property has the initial burden to show that the growth was active. This means that it resulted from your labor, marital funds or specific contributions during the marriage. If your spouse presents evidence of active management, the burden effectively shifts back to you to demonstrate the growth was passive.
Securing your financial legacy
Your focus might be on safeguarding your financial future, but understand this requires moving beyond balance sheets. Navigating the nuances of family law, especially property division, can be difficult to face alone. Seeking legal advice from a divorce attorney can help you learn more about ensuring your professional success does not become a casualty of your personal transition.
