Before getting married, have you ever considered what you might do if your marriage doesn’t work out? While it’s best to broach your wedding nuptials under the impression that you and your spouse will stay together until “death does you part,” the unfortunate reality is that some marriages don’t stand the test of time.
Here are ways to protect your assets during a divorce
A divorce can be a financially challenging time, especially if the divorce was an unexpected or rushed decision. With so much on the line, it’s vital to protect your wealth and property through thoughtful planning during the divorce process.
Separate finances as soon as possible
If you’re in a marriage where finances are commingled, separating accounts can be harrowing. But if divorce is inevitable and you want to protect your assets from being distributed in divorce court, you must separate them.
Consider opening new accounts for everyday expenses or transferring money into investment accounts, which isn’t easily accessible. Carry what you need and deposit anything above that into a separate savings account in your name only.
Obtain prenuptial agreement
Prenuptial agreements aren’t always popular, but they’re essential to any divorce. Before you tie the knot, sit down with your partner and lawyer to draft an agreement that outlines how you would divide your assets in case of a split.
Consult with a divorce attorney
No matter how amicable your divorce, there are always details to work out. While it can be tempting to try and sort out your divorce proceedings in good faith on your own, it’s important to remember that divorce proceedings can get complicated (and unthinkably messy).
If you suspect that it might get messy or acrimonious, consult with a reputable law firm like wh Law, a trusted Little Rock divorce lawyer group with the experience to help you achieve the best result possible.
Understand the divorce process in your state
If you’re going through a divorce, it’s essential to understand how that process works in your state. In some states, community property law ceases to exist, meaning spouses don’t split assets equally. On the other hand, some states like California have an equitable distribution policy.
Take inventory of your assets
Whether you’re going through a divorce or not, you should conduct an inventory of your assets. This list will include physical assets, retirement accounts, investments, real estate holdings, and much more. Keep a folder where you can collect information about each one and make notes as needed.
If possible, scan or photograph things like car titles, bills of sale, and other documents related to your possessions. Consider getting appraisals for some items if there is any question about their worth.
Create a will and trust
A will and trust are two of the essential documents you’ll need, regardless of whether you have kids or plan on staying married. If you aren’t comfortable leaving your assets to your spouse, set up a will and trust. That way, your holdings will be allocated according to your wishes.
If you’re going through a divorce, your assets get shared between you and your soon-to-be-ex. In these cases, it’s essential to protect yourself from financial and emotional stress by taking precautions now to prepare your assets for divorce and avoid further conflict with your spouse.