As a lawyer who represents clients facing the foibles of a difficult divorce, I am often called upon to represent and protect business owners from assets that may be deemed part of their divorce. While it is very difficult to argue that most businesses are determined by the Court to be “non-marital” i.e. belonging to one spouse, there are provisions in the law that may be useful to separate a company’s assets from the marital estate.
In cases where I represent clients who own specialized, high-end or collectable vehicles I find that legal separation can play an important role in the management of these assets. My client recently asked what the requirements for legal separation in Ohio were, and how they may impact his collection. During discussions, we will discuss the merits of creating a clear, written plan for the vehicles and their use during the pendency of a development of a plan for the divorce.
I often field calls from potential clients who are not ready to file for an entire divorce, but wish to do something about the situation they are facing. For some people, legal separation may be the answer. Legal separation will accomplish many of the same goals as filing for divorce, but you will remain married to your spouse. A written legal separation agreement determines issues such as:
I have found that most lawyers do not often take the time to explain the importance of assets and their care during the pendency of a legal separation. When clients are facing a divorce, it is highly recommended that the parties arrange for the division of assets and their use. If the collection is divided in a way that is agreeable to both parties, many problems can be avoided. In the case at hand, the parties were able to agree to divide the collection and the dates of usage and care.
In some situations, the parties may argue about the value of the vehicle or it may come as a big surprise to understand the value of a particular piece of the collection. With a limited market, and limited knowledge on the part of the general population about certain vehicles, an expert opinion may be required to determine a value for purposes of an agreement. When a value is established up-front, it is usually easier to divide the value than to obtain an agreement later on the ultimate settlement of the case.
If the situation arises where a collection needs to be divided, the parties will need to address the following considerations. All of these issues are important to resolve before the court decides the legal separation issues:
If you own a rare or valuable collection, it is wise to draft a proposed plan to handle the collection once legal separation is completed. During the pendency of a separation, the parties will usually be able to agree on the use, care and maintenance of the collection, making it possible for their use when a divorce is filed.
Many people do not understand legal separation and custody issues. My job often entails explaining the basic concepts of law to help my clients understand the process and their rights. From there, I draft a written agreement to make sure my client’s assets are protected per the mutual agreement. This avoids conflicts and allows my clients to concentrate on their business.
Following the completion of the legal separation requirements, the parties will usually return to court for a hearing on the property and its use. The best way to avoid problems is to work with an attorney who is knowledgeable about the legal separation requirements and can assist you in preparing the terms of an agreement.