Protecting Investments Through Divorce

Ohio Divorce Attorney: Investment Property

If you are heading towards a divorce, you should be concerned about protecting the value of investment property during the division of marital assets and liabilities. This applies to any investment property such as stocks, bonds, mutual funds, savings accounts, vacation properties and other real estate. There are several issues that need to be carefully addressed, including identification of property as marital or separate, accurate valuation, reassignment of shares and tax liability.

Classification as marital property or separate property

Generally, an investment acquired before marriage that has increased during the marriage might be improperly classified as marital property. It is important to examine the history of the investment and determine whether you or your spouse contributed to the value during the marriage, whether the asset has been commingled with your marital estate, or whether it has remained separate property. Commonly, if an investment was purchased with funds from a gift or inheritance received by one spouse during the marriage, it may be classified as separate, non marital property, depending on the above factors.

Valuation of stocks, bonds, mutual funds and real estate

A complex or high-asset divorce, typically includes a number of investments in a variety of financial vehicles. One point of contention in any high-asset divorce pertains to the value of the particular stock, bond, mutual fund and real estate. In order to determine the appropriate valuation it may be necessary to involve the services of an expert such as a CPA or certified financial consultant. Additionally, depending on the particular investment vehicle, there are a number of tax issues that need to considered.

The tax implications of division of investment properties

As your divorce lawyer, I will recommend actions based on your overall financial circumstances as compared with Ohio's matrimonial laws. It is essential to understand penalties for liquidating or withdrawing assets prematurely. Additionally, as with many financial issues affecting a divorce, tax planning and coordinating asset division with spousal support can assist in maximizing your saving in the long run. Whether you are the asset owner or the spouse of an asset owner, the above considerations should be in the forefront.

If you would like to speak with me about division of investment property during divorce, please call (614) 461-5708 or e-mail my Columbus, Ohio, office for a free consultation. I accept credit cards, and can meet with clients at out-of-office locations on evenings and weekends. As your attorney, I will see that you have all of the information you need to make informed decisions and proceed with confidence.

For general information, visit our Divorce and Community Property Information Center.

Dirk D. Winkler, Columbus, Ohio, Divorce Lawyer