You don’t need to be a world-class lawyer to protect your assets in a divorce. According to statistics, about 40 to 50 percent of marriages in the United States end up in a divorce. And besides beings mentally and physically stressful, it can also lay waste to your finance for years. If you don’t want to lose your shirt during this period, here are a few tips to help you protect your assets.
Try to divorce as peacefully as you can because the belligerent it gets, the more your legal fee will increase. If you can negotiate and reach a compromise without going to trial, you can save tens of thousands of dollars.
It is usually common for a partner to be mainly involved in the family finances while the other stays out of it. If you remove yourself from this process, you won’t have the comprehensive details of your spouse financial position. It can later come to bite you because it will be easier to manipulate the numbers during divorce.
You might be surprised when you realized your partner has empty all your joint account without your knowledge. You just cannot afford to ignore this area of finances, try to remove some of the funds while you still can to protect your assets.
Prenuptial agreement before marriage can help resolve how the assets will be divided between you and your partner if things do not work out. The way the law treats the financial aspect of a divorce might not be fair to you, but the law is the law, so you have to be prepared not to put yourself in that position.
Close or freeze all joint accounts you and your partner hold together. Whether it is a line of credit, credit cards, or a loan you need to pay off credit card and close the account as soon as possible, if not, you could be held responsible for all the bills run up by your partner.
Try to get the right financial planner from the start and avoid using your previous planner who is likely not an expert in divorce settlements. The right divorce mediators can reduce the cost of a divorce by over 50 percent because they have experience in this area. However, you can still consult your lawyer to ensure you reach an equitable agreement.
A thorough inventory of all your assets and your spouses’ will help you to make sure they are divided equitably. By doing this, you should accurately estimate the values of each asset and note whether it is an inheritance or a gift and when they were acquired.
Even in a community property state, you can usually take any pre-marital savings and inheritances away with you as long as it is in your separate name. However, using your pre-marital savings to pay down your mortgage could unintentionally make it marital and thus leads to being divided in a divorce.