Before you file for divorce in Ohio, check the state of your finances. You might assume that funds in your solely owned accounts are safe, but it may not be true. It is a common misconception that having your name on an account means its funds are all yours. However, under the Ohio legal system, the name on a bank account matters less than the source of the funds.
Marital vs. separate property
Ohio is an “equitable distribution” state. During a divorce, the court aims to divide marital property fairly, which does not always result in a 50/50 split. Knowing the difference between marital and separate property is key to understanding if your separate bank account is protected.
Marital property in Ohio generally includes income and assets you or your spouse acquired during the marriage. If you deposit your funds into a separate account that your spouse cannot access, that money is still marital property. Because you earned it during the marriage, your spouse likely has a legal claim to the funds. They may be entitled to a share regardless of whose name appears on the account
Dangers of commingling
On the other hand, separate property can remain yours after divorce. This category typically includes:
- Assets you owned before the marriage
- Inheritance that you received
- Gifts other people gave solely to you
While these funds can remain yours after a divorce, they lose their protection after “commingling.” If you mix separate and marital funds to the point where you cannot clearly distinguish them, the entire account may become marital property.
Protecting separate funds
Simply opening a separate account is not enough to shield your finances in a divorce. If you want to safeguard your financial future, you need to maintain strict boundaries between pre-marital wealth and assets earned during the marriage.
Commingling is one of the biggest pitfalls for Ohio residents who care about their separate property. If you claim certain accounts contain separate property, you will need to prove it. Consider maintaining clear records showing the source of funds and other evidence that you kept your accounts separate from marital property. Without proper documentation, courts may presume all assets acquired during marriage are marital property.
Additionally, you should reach out to a qualified Ohio legal representative. They can help you review your bank account and safeguard your separate assets.
