Financial preparation for a dissolution in Ohio is an essential step you need to take well in advance to avoid complications later on. Even though a dissolution of marriage is simpler and more straightforward than a traditional divorce, you still need to financially prepare for what your new life will look like.
After all, although a dissolution is less rigid than divorce, it still requires you to completely divide your finances.
In this article, we will discuss the basics of financial preparation for a dissolution in Ohio so that there are no surprises along the way.
Gather Financial Documents
The very first step you need to take when preparing financially for a dissolution in Ohio is to gather all of the important financial documents. Doing this will help with every other step of the process and will reduce the risk of you forgetting anything important.
Here are some examples of the types of financial documents you should collect and organize:
- Bank statements
- Tax returns
- Paystub’s
- Retirement and investment accounts
- Credit card balances
- Loan balances
Ideally, all of these documents should go back as far as the past three years. But depending on the type of document, you may want to go back even further.
Identify Assets & Debts
Once you have completed the step of organizing your financial documents, you can move on to identifying assets and debts. This includes both marital and separate assets and debts, as this will be crucial for transparent asset and debt disclosure.
The way Ohio determines separate vs marital property is relatively simple, which should make it easy to categorize your assets and debts.
- Separate property: Any non-marital property you owned before the marriage, which can include gifts or inheritances that you received while you were married. Separate property extends to debt as well, including any debt that was solely incurred by you before the marriage.
- Marital property: Any property acquired during the duration of the marriage, which includes property where the other spouse contributed to it in some way. This will also include any debt acquired during the marriage, such as joint credit cards or loans.
Keep in mind that it isn’t always as straightforward as separate vs marital property, as the line may become blurred.
You should consult with a dissolution attorney in Ohio to determine the best way of navigating instances where the line between marital and separate property isn’t completely distinct.
Create a Financial Plan
The next step in this dissolution financial checklist is to create your individual financial plan. After your dissolution is completed, your finances will be officially separate and will most likely look very different from what you are used to. So, it’s important that you plan ahead so that you know what to expect and how you should proceed.
Here is a basic breakdown of what your financial plan should include:
- An updated budget for your post-dissolution income.
- Your new housing and living expenses.
- Child-related to costs, if applicable.
- Updated debt management strategy.
- Your individual income.
You may need to add to this list depending on your unique situation, especially if you are retired, have children, or are a stay-at-home parent.
Hire a Dissolution Attorney
Even though both spouses are on the same page during a dissolution case, you should still seek representation from a dissolution attorney in Ohio. Having an attorney on your side will ensure your rights are upheld, and can help you avoid running into legal issues later on.
Your attorney can guide you through dissolution preparation, ensuring you gather and document everything necessary for splitting your finances. They can also help you deal with any confusion surrounding marital vs separate property so that you are able to keep any property that is solely yours.
Common Financial Mistakes to Avoid in a Dissolution
A dissolution of marriage in Ohio is a legal process, so it is important that you understand what you should and shouldn’t do, especially when it comes to the financial side of things. There are many potential issues you could run into that could complicate your dissolution case, such as:
- Intentionally hiding or accidentally overlooking assets.
- Failing to prepare for potential tax consequences.
- Not creating a plan for your future expenses and financial obligations.
- Incorrectly assessing separate vs marital assets and debts.
FAQ Section
What financial documents do I need before filing?
You and your spouse will need to file a petition for dissolution of marriage along with a waiver of service of summons. Your petition should also include an affidavit of basic information, income, and expenses, an affidavit of property and debt, and a separation agreement.
Should I open a separate bank account before filing?
You can open a separate bank account before filing for a dissolution of marriage; just keep in mind that you will need to disclose this account with your petition. The court may also look into the account further to ensure it isn’t being used as a way of hiding financial assets.
How do I determine what assets are marital property?
Assets are categorized as marital property if they were acquired after you entered the marriage. This could also apply to certain situations where you owned the assets before the marriage, but your spouse directly contributed to them in some way later on.
Get the Help of a Dissolution Attorney in Ohio
Before you move forward with your dissolution in Ohio, you need to financially prepare for when your finances are divided between you and your spouse. And although this may seem simple enough, it is a crucial step in the dissolution process that will help you avoid running into issues later on. At Garretson & Holcomb, LLC, our attorneys are here to help our Ohio clients navigate the dissolution process. Contact us today at 513-863-6600 to get the process started with the help of a dissolution attorney in Ohio.
