Zachary D. Smith, LLC Family Law Attorney Cincinnati Ohio 2026-07-07T20:05:34Z https://www.zdslaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1204423/2019/08/cropped-favicon-32x32.png On Behalf of Zachary D. Smith, LLC <![CDATA[4 tax traps to avoid when dividing assets during divorce]]> https://www.zdslaw.com/?p=52002 2026-06-22T07:24:15Z 2026-06-25T07:23:29Z Following incorrect retirement account procedures Different retirement accounts require different transfer procedures. Employer-sponsored plans like 401(k)s need a Qualified Domestic Relations Order (QDRO) for tax-free transfers. Individual Retirement Accounts (IRAs) use a transfer incident to divorce instead. Without proper documentation, the IRS may treat your transfer as taxable income.

Overlooking capital gains on property sales

Assets worth the same amount can have different tax consequences. A house valued at $500,000 and $500,000 in cash may seem equivalent. However, selling the house later could trigger substantial capital gains taxes that cash does not carry. Ohio follows federal capital gains tax rules. Generally, investment properties do not get the same exclusions as primary residences. An analysis of each asset's tax basis can help you understand the true value of what you are receiving.

Misunderstanding alimony tax treatment

Alimony tax treatment changed significantly in recent years. The payer cannot deduct alimony payments from their taxes. The recipient also does not pay taxes on alimony received. Ohio courts follow these rules when awarding spousal support. These rules affect how you negotiate support amounts. What seems like a favorable agreement may work differently after taxes.

Ignoring tax filing status changes

Your marital status on December 31st determines your tax filing status for the entire year. If your divorce finalizes before year-end, you cannot file jointly. This change affects your tax brackets, deductions and credits. Planning the timing of your divorce decree can have major tax effects.

Protecting yourself from costly tax mistakes

Divorce is one of life's most difficult transitions. The financial decisions you make during this time can affect you for years to come. Being aware of the tax impact of asset division can help you plan for the future.]]> On Behalf of Zachary D. Smith, LLC <![CDATA[The Ohio Supreme Court offers updated guidance on parenting time]]> https://www.zdslaw.com/?p=52001 2026-06-18T12:13:06Z 2026-06-23T12:12:17Z Ohio adopts new parenting time standards The new guide promotes moving away from standard visitation schedules like alternating weekends. However, it does not legally eliminate these traditional schedules. Each county court still has authority to maintain its own local parenting time guidelines. The guide supports custom schedules based on each child's age and needs. It establishes that there is no single legal default for parenting time. However, courts still have discretion to determine what arrangements serve the child's best interests.

Greater flexibility for parents

Ohio's updated parenting time framework takes into account the realities of today's families. It covers long-distance co-parenting and parental relocation issues. These matters often come up when you manage multiple business locations or properties in different regions. The guide provides schedules based on age groups: infants, toddlers, school-aged children and teenagers. If your role involves travel or irregular hours, the framework supports ways to keep strong parent-child relationships.

Modifying parenting time may be easier

The Supreme Court also clarified an important difference under Ohio law. In most cases, the parent must show a major change in circumstances to modify custody. However, parenting time schedules no longer require that high standard. You can now ask to change your parenting schedule by showing that the change serves the best interests of the child. This includes:
  • The child's wishes
  • The parents’ work schedule and availability
  • The child's adjustment to home and school
  • Each parent's ability to support the other parent's relationship with the child
These guidelines make it easier to adapt your schedule while prioritizing your child's well-being.

What this means for your custody case

Ohio's 2026 parenting time updates bring needed flexibility to families going through divorce. The guidelines now support arrangements that reflect real life. What matters most is keeping a meaningful relationship with your children through this difficult transition. As you move through this challenging time, these changes may give you new legal options. Understanding these can help you make informed decisions moving forward.]]> On Behalf of Zachary D. Smith, LLC <![CDATA[What happens during a forensic lifestyle analysis in divorce?]]> https://www.zdslaw.com/?p=51976 2026-05-22T13:27:18Z 2026-05-27T13:26:33Z How your attorney uses forensic accountants to trace spending Ohio law requires the evaluation of the standard of living established during the marriage to decide if spousal support makes sense. Your attorney must work with a forensic accountant who can review bank statements, credit card records, tax returns and receipts to get proof. Accountants will scan peer-to-peer payment apps like Venmo and Zelle for hidden transactions. They may also check buy now pay later services like Affirm and cryptocurrency exchange records. Your attorney can use this detailed report in negotiations or present it to the court to prove the true marital standard of living.

What the analysis reveals in complex cases

A lifestyle analysis uncovers spending that changes support outcomes. The accountant finds proof that contradicts what your spouse claims. This often reveals:
  • Undisclosed income: Cash deposits, business expense reimbursements or bonuses routed through personal accounts
  • Hidden assets: Cryptocurrency transfers back into liquid cash used for travel or discretionary spending
  • Inflated or deflated expenses: One spouse claiming poverty while digital payment records show luxury purchases hidden from shared credit card statements
The analysis also detects irregular expenses. Country club dues, private school tuition and luxury vehicle leases often appear in the data. Your spouse might leave these out of their proposed budget during the divorce process to lower their support obligation.

How this protects your financial future

Without a lifestyle analysis, you might accept too little spousal support. Your spouse could hide income or lie about expenses. This tool shows the court what you really spent during your marriage. It protects your right to keep the same standard of living after divorce. Divorce already turns your life upside down. Your divorce attorney can use this analysis to make sure it does not wreck your financial future too.]]> On Behalf of Zachary D. Smith, LLC <![CDATA[What if my spouse is wasting our money during the divorce?]]> https://www.zdslaw.com/?p=51959 2026-04-23T13:45:17Z 2026-04-28T13:44:21Z You notice your spouse spending money recklessly as your marriage falls apart. Large withdrawals appear on bank statements for unexplained purposes. Expensive purchases show up that serve no family need. This behavior might qualify as wasteful dissipation, which Ohio courts take seriously when dividing marital property.

What wasteful dissipation looks like

Dissipation happens when one spouse intentionally wastes or destroys marital assets during the marriage breakdown or divorce process. Ohio is an equitable distribution state, meaning courts must divide assets fairly. As such, they look out for patterns of wasteful behavior:
  • Affair-related spending: Your spouse spends marital funds on gifts, trips or living expenses for a romantic partner outside the marriage.
  • Excessive gambling: Your spouse loses significant amounts of money at casinos or through sports betting without any history of such activity during the marriage.
  • Reckless purchases: Your spouse buys luxury items, vehicles or other expensive goods that serve no legitimate family purpose right before or during divorce proceedings.
  • Business losses: Your spouse makes risky business investments or deliberately runs a marital business into the ground to reduce its value.
  • Giving away assets: Your spouse transfers money or property to friends or family members for little or no compensation.
Ohio law generally looks at spending that happened during the breakdown of the marriage. Courts want to see that the spending was intentional, wasteful and done to deprive you of your fair share.

How to protect yourself

Documentation becomes critical when you suspect dissipation. Save bank statements, credit card bills and receipts that show unusual spending patterns. Track when the wasteful behavior started and calculate how much money your spouse spent or lost. Take screenshots of social media posts that might show expensive purchases or trips. Ohio courts can compensate you for dissipated assets by awarding you a larger portion of the remaining marital property. Judges might also order your spouse to reimburse the marital estate for wasted funds. Acting quickly to document the waste and seeking legal guidance helps you build a strong case and protect your financial interests during property division.  ]]> On Behalf of Zachary D. Smith, LLC <![CDATA[Should I time my divorce based on the economy?]]> https://www.zdslaw.com/?p=51958 2026-04-17T15:46:48Z 2026-04-17T15:46:48Z What the research actually shows A Pew Research Center analysis of divorce trends during the Great Recession found that divorce rates actually fell as the economy contracted, then climbed again as conditions improved. The pattern suggests that financial stress discourages couples from pulling the trigger on a divorce they may have already decided on, not because the marriage recovered but because the timing felt impossible. What this means practically is that delaying a divorce for economic reasons tends to compress the timeline into a future period when asset values may be higher, legal calendars are more congested and opposing counsel has had more time to prepare. The delay rarely produces the financial advantage people anticipate.

Why asset values cut both ways

The assumption behind economic timing is usually that waiting will produce higher asset valuations. In a divorce involving substantial assets, that assumption deserves scrutiny. Consider what economic conditions actually affect:
  • Business valuation methods, including income-based approaches that rely on EBITDA multiples, compress during downturns and expand during recoveries. A business worth $8 million in a strong market may carry a significantly different valuation during a contraction, which can work in either party's favor depending on which side of the ledger you occupy.
  • Executive compensation structures, including unvested restricted stock units, performance shares and deferred compensation, fluctuate with both company performance and broader market conditions. The valuation date a court uses for these instruments under Ohio Revised Code § 3105.171 can produce materially different outcomes depending on when the case resolves.
  • Real estate holdings in Hamilton and Warren counties carry their own valuation timing considerations, particularly for investment properties where capitalization rates shift with interest rate environments.
Waiting for a "better" economy does not simplify any of these issues. It changes which set of numbers appears on the valuation reports and introduces new uncertainty about which party benefits.

What Ohio courts consider in financially complex cases

Ohio courts divide marital property under an equitable distribution framework, which gives judges significant discretion over how and when assets are valued. Courts can use different valuation dates for different asset classes, appoint independent business valuators and consider the liquidity implications of dividing illiquid assets like closely held businesses and real estate portfolios. That discretion means the outcome of a financially complex divorce in Ohio depends less on market timing and more on the quality of financial documentation, the credibility of valuation professionals and the strategic decisions made early in the process.

The case for acting on your timeline, not the market's

The decision to divorce is personal. The financial implications are real but manageable with the right preparation, regardless of where the economy stands. What produces better outcomes is not waiting for favorable market conditions but engaging early with professionals who understand how to navigate complex asset structures within Ohio's equitable distribution framework. An attorney who handles financially complex divorces in Cincinnati and the surrounding counties of Hamilton and Warren can help you assess the full picture: how your business interests, investment holdings and compensation structures are likely to be treated, what valuation strategies apply to your specific assets and where the meaningful leverage points in your case lie.]]> On Behalf of Zachary D. Smith, LLC <![CDATA[Is your startup’s growth still separate property?]]> https://www.zdslaw.com/?p=51928 2026-03-25T07:05:37Z 2026-03-30T07:04:37Z 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.]]> On Behalf of Zachary D. Smith, LLC <![CDATA[Should you fight for the marital home in a divorce?]]> https://www.zdslaw.com/?p=51920 2026-02-24T12:24:22Z 2026-02-27T12:23:47Z 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.]]> On Behalf of Zachary D. Smith, LLC <![CDATA[Can Assets Be Sold While A Divorce Is In Progress?]]> https://www.zdslaw.com/?p=51921 2026-02-23T08:42:36Z 2026-02-26T08:41:52Z The courts typically prevent questionable property transfers Financial misconduct in the early stages of divorce is a well-known complicating factor that can make it more difficult to fairly divide the marital estate. It is common for judges to issue temporary restraining orders at the beginning of a divorce. These restraining orders do not prevent contact between the spouses, like protective orders issued in cases involving stalking or domestic violence. Instead, they prohibit either spouse from selling or otherwise damaging marital resources. It is also standard for the courts to prohibit the removal of minor children from the state while a divorce is in progress. The temporary orders prohibiting the sale or transfer of marital assets help preserve resources until the courts rule on property division issues. People may be unable to access joint lines of credit or make major financial transfers without the permission of the courts or their spouses. Creating an inventory of marital property and learning more about divorce proceedings can help people preserve their resources and make use of the systems in place for their protection. Financial misconduct during divorce is common, so the courts are proactive about preventing inappropriate sales and transfers. Spouses who understand the law, and who know what to expect during divorce, can more effectively protect their resources until the courts approve a final property division order.]]> On Behalf of Zachary D. Smith, LLC <![CDATA[I’m divorcing and don’t want to lose our business. What now?]]> https://www.zdslaw.com/?p=51916 2026-01-28T07:35:18Z 2026-02-02T07:34:38Z If you share a business with your spouse – and you and your spouse are going your separate ways – you may be understandably concerned that the company you built is, effectively, on the line. Many spouses fear that divorce automatically means that they will be compelled to sell a shared business or lose control of the company, but that is not always the case.  While the process of dividing interests in a jointly-owned business with a spouse can be complex, there are strategies available that can help you to protect the business and keep it operating during your divorce process and after your divorce is finalized.

Which approach is right for your unique circumstances?

Even if only one spouse is actively involved in the running of a particular company, a business created or grown during a business owner’s marriage may be subject to division. That does not mean that the business must be sold. It means its value may need to be addressed as part of the overall settlement. Early valuation by a qualified legal team can help establish a realistic picture of what is at stake and prevent inflated or speculative claims. One common approach is a buyout. In this scenario, one spouse keeps the business while the other receives assets of equivalent value, such as cash, retirement accounts or real estate. This allows the business to remain intact and avoids disruption to employees, customers and operations. Buyouts can be structured over time to protect cash flow rather than requiring a large upfront payment. Another option is continued shared ownership, at least temporarily. Some spouses choose to remain co-owners for a defined period while the business stabilizes or until a future sale. This approach requires clear agreements regarding management, decision-making and exit strategies. Without careful planning, ongoing co-ownership can create conflict and risk for the business. Cash flow and income issues are closely tied to business ownership. How profits, retained earnings and compensation are handled can affect support calculations. Transparency is necessary during negotiations or litigation, as courts will closely examine whether income is being understated or manipulated. Clear financial records can help to support fair outcomes. Timing and strategy matter. Decisions made early in the divorce can shape the final result. Rushed agreements or informal promises may create long-term problems. Coordinating legal strategy with business planning from the start can reduce risk and preserve value.]]> On Behalf of Zachary D. Smith, LLC <![CDATA[Divorce Without Borders]]> https://www.zdslaw.com/?p=51899 2025-12-26T08:39:24Z 2025-12-31T08:38:48Z Legal immigration status Divorce can easily complicate the legal status of a non-citizen spouse. Frequently, those who marry United States citizens are eligible for green cards. However, those green cards are conditional. If the divorce occurs within two years of the immigrant spouse entering the country, their status could be at risk. Couples may need to discuss the implications of their divorce proceedings and take appropriate steps to prevent immigration consequences.

Property division challenges

When spouses own international resources, dividing those assets can prove quite difficult. Even securing accurate disclosures can be a challenge when some of the property is not local. People with international holdings frequently face complex property division litigation or negotiations due to their assets.

Custody concerns

When divorcing spouses share children, they typically arrange to share parenting time and legal authority with one another. When one spouse still has strong ties in another country, there may be reason to worry about international child abduction. Parents facing divorce when their spouse has family abroad or may return to their country of origin often need to include very clear provisions about international travel in their custody orders. While there are international laws and treaties that help protect parents from international parental child abduction by a former partner, preventing parental kidnapping is typically the better option. There may be a host of other challenges present when preparing for a divorce that involves people from two different countries. Working with an attorney who has helped people navigate international divorces previously may lead to better outcomes for concerned spouses.]]>