Clients going through a dissolution in Ohio often ask a very practical question: can I sell property while the dissolution is still pending? The short answer is that it depends, but selling major assets without clear agreement can create serious legal problems. Dissolution is meant to be a cooperative process, and actions that disrupt that cooperation can derail the entire case.
Unlike divorce, where the court resolves disputes, dissolution requires both spouses to agree on all terms before the case is finalized. That includes how property is handled. When one spouse sells or transfers assets without the other’s consent, it can undermine trust, delay approval of the dissolution, and expose that spouse to claims of misconduct or unfair dealing.
Understanding what qualifies as a major asset and how Ohio law treats asset transfers during dissolution is essential before making any financial moves.
What Qualifies as a Major Asset?
A major asset is generally anything of significant value that is considered marital property under Ohio law. Marital property typically includes assets acquired during the marriage, regardless of whose name is on the title or account.
Real estate is one of the most common examples. The marital home, rental properties, or vacant land are all considered major assets. Vehicles such as cars, trucks, motorcycles, boats, or recreational vehicles may also qualify, especially if they have substantial value or outstanding loans.
Retirement accounts are another category that often causes confusion. Pensions, 401(k)s, IRAs, and similar accounts earned during the marriage are usually marital property, even if only one spouse contributed to them. Selling, withdrawing from, or borrowing against these accounts during dissolution can create tax consequences and legal disputes.
Large personal property items can also be major assets. This may include valuable jewelry, collections, firearms, business equipment, or other high-value items. If an asset would reasonably affect the overall property division, it should be treated as a major asset.
Ohio Rules on Asset Transfers During Dissolution
Ohio dissolution law is built around mutual agreement. Both spouses must submit a separation agreement that clearly outlines how assets and debts will be divided. Any sale or transfer of major assets should be addressed in that agreement.
In most cases, spouses are expected to maintain the status quo while the dissolution is pending. Selling property without the other spouse’s consent can be viewed as an attempt to hide assets, reduce the marital estate, or gain leverage. Even if the sale was not intended to cause harm, the lack of agreement is often the real issue.
If a major asset is sold during the dissolution process, the sale and the handling of the proceeds must be disclosed and approved by both parties. This usually means including the sale terms and division of proceeds directly in the separation agreement. Without that approval, the court may refuse to finalize the dissolution.
Unauthorized sales can lead to claims of financial misconduct. A spouse who sells assets without permission may be required to reimburse the other spouse, account for the full value of the asset, or renegotiate the entire property division. In some cases, a dissolution may have to be converted into a divorce if cooperation breaks down.
Exceptions and Urgent Situations
There are situations where selling an asset during dissolution may be reasonable or even necessary. Financial emergencies, looming foreclosure, repossession, or the inability to maintain a property can create urgency that cannot wait until final paperwork is signed.
In these cases, the safest path is written agreement. If both spouses agree to the sale and document that agreement in writing, the transaction is far less likely to cause problems. The agreement should address the reason for the sale, the expected value, and how the proceeds will be handled.
In rare situations where spouses cannot agree but a sale is necessary, court involvement may be required. While dissolution is designed to avoid litigation, the court can approve certain actions to prevent financial harm. This typically happens when delay would significantly damage the marital estate.
Even in urgent situations, transparency is critical. Full disclosure, proper valuation, and clear documentation help protect both spouses and keep the dissolution process on track.
Best Practices for Selling Assets During Dissolution
When possible, waiting until the separation agreement is finalized is the cleanest and least risky approach. Once the agreement is approved, asset sales can proceed according to its terms without fear of legal fallout.
If a sale cannot wait, everything should be put in writing. Verbal agreements are not enough. Written consent protects both parties and provides clarity if questions arise later. This documentation should be shared with the attorney preparing the separation agreement.
Accurate valuation matters. Whether selling a house, vehicle, or other asset, knowing its fair market value helps ensure the division is equitable. Appraisals, market analyses, and account statements all play a role in avoiding disputes.
Record keeping is equally important. Proceeds from any sale should be traceable, ideally kept in a separate account until they are divided according to the agreement. Mixing funds or spending proceeds prematurely can create unnecessary suspicion and conflict.
Most importantly, legal advice should come first. Every dissolution is different, and what seems reasonable in one case may cause serious problems in another.
Frequently Asked Questions
Can I sell my car before the dissolution is final?
In some cases, yes, but only with your spouse’s agreement. If the vehicle is marital property, selling it without consent can cause disputes. The sale and division of proceeds should be addressed in the separation agreement to avoid problems.
What if my spouse sells something without telling me?
Unauthorized sales can be addressed during the dissolution process. The spouse who sold the asset may be required to account for its value or reimburse you. In some cases, the dissolution may be delayed or converted into a contested divorce if trust breaks down.
Does selling a home require court approval?
If both spouses agree and the sale is included in the separation agreement, court approval is usually straightforward. If there is no agreement, selling the home can become complicated and may require court involvement to protect both parties’ interests.
Final Thoughts
Selling major assets during a dissolution in Ohio is not something to handle casually. Because dissolution relies on mutual agreement, unilateral decisions can create serious legal and financial consequences. Whether the asset is a home, vehicle, retirement account, or valuable personal property, the safest approach is transparency, written consent, and careful planning.
Before selling any marital asset during the dissolution process, it is critical to consult with an experienced family law attorney. Doing so can help you avoid costly mistakes, protect your rights, and keep your dissolution moving forward efficiently. If you have questions about selling property during a dissolution in Ohio, Garretson & Holcomb, LLC in West Chester Township can provide guidance tailored to your situation. Call (513) 863-6600 to discuss your options before taking action.
