Ohio Divorce Double Dip Issues
This article examines Ohio divorce double dip issues. A double dip occurs when both the value of the business and spousal support represent the same money.
Calculating Spousal Support And Ohio Divorce Double Dip Issues
In calculating spousal support, courts may treat a spouse’s future business profits either as a marital asset subject to division, or a as a stream of income for spousal support purposes, but not both. Business evaluations may not necessarily be based on future income that occurs forever. Instead, they are based upon a realistic expectation of income for a reasonable period of time. At some point in the distant future, it becomes extremely difficult to project income. For spousal support purposes this creates a dilemma. While the business value is being divided up based upon future income, what happens to spousal support? Usually, there is some amount of spousal support along with the business division. When should the court no longer consider the business value in determining spousal support? In other words, when would awarding a greater amount of spousal support no longer be a double dip? Some court have allowed double dipping when the business is a solely-owned, closely-held business.
Equalizing Income And Ohio Divorce Double Dip Issues
In calculating spousal support, Courts usually look to ensure the recipient spouse can maintain the same standard of living as the paying spouse will enjoy. In other words, many courts equalize income. This can include sharing in the success of the paying spouse’s business. While property division payments cannot be considered income for spousal support purposes, the court can consider property division in calculating spousal support.
Attorney Daniel Gigiano
Attorney Daniel Gigiano was admitted to the practice of law in Illinois in 1993. In 1999, he was admitted to practice in Ohio. In 2000, he took his experience to a private practice in Wadsworth, Medina County, Ohio, and devotes a substantial portion of his practice to family law. Attorney Gigiano has maintained a practice in Wadsworth since that time.