Thursday, March 31, 2016

How you Protect your Financial Assets During a Divorce

A divorce can be an emotionally draining time and often in more ways than just one. If you are not careful, it could be financially draining as well. It is easy to let your personal finances fall through the cracks during the events of your divorce as it is very emotionally distracting. 

There is also the possibility that you are having to split your assets to your ex-spouse or lose them altogether. 

However, there are steps that you can take to protect your assets from being taken or divided with your spouse as part of the divorce settlement. What can you do to protect yourself?

Establish Your Own Bank, Credit and Investment Accounts

If money from your own paycheck goes into your own bank account, it is easier to claim that it is a separate asset. Putting a credit card in your own name means that your spouse cannot use it to rack up debt that you may need to liquidate assets to repay. 

Having your own investment accounts enables you to claim that at least some of your portfolio is a separate asset that shouldn't be taken from you. 

Ask for a Prenuptial Agreement or Postnuptial Agreement

As long as it is done properly, a prenuptial agreement can state what happens to property before you even contemplate a divorce. 

If you own a business or have other valuables, you know ahead of time how they will be handled in the event of a divorce. A postnuptial agreement is much like a prenuptial agreement, but it is put into place after the marriage is official.

Learn the Art of Negotiation

Depending on where you live, marital property may be divided in an equitable fashion or divided 50/50. If it is divided in an equitable fashion, you may be able to get your former spouse to agree to forego a claim to a license or patent in exchange for a lump sum payment today. 

Your spouse may also agree to give up a claim in exchange for also being held harmless if you lose a judgment in the future related to misuse of that license or patent.

There is also a lot more when it comes to negotiating the aspects of your divorce that can impact your personal finances and assets. For example, are you a parent? Were you the money maker in your marriage. 

These aspects of your divorce will affect your financial situation. If children come into play, there is a possibility you may have to pay for child support. There is also the possibility that you may have to split money with your ex-spouse in order to help your child go through school or other activities they may be involved in. 

There is also a possibility that you may have to pay alimony to your ex-spouse. This can cost you a lot of money over time and it many cases it usually lasts until they re-marry. 

Therefore you want to be careful in how you negotiate these terms in order to protect your assets. This is where your lawyer will come in handy.

Hire an Attorney

Hiring someone such as Thomas A Corletta may increase your odds of protecting your assets. 

Legal counsel may be able to use state law to your advantage when it comes to dividing property in a divorce. If informal negotiations don't work, a formal trial may enable you to keep what is yours.

After a divorce, you will need your money more than ever to pay rent, pay off past debt or to provide for your child. 

Therefore, make sure that you take every step possible to protect your assets before, during and after a divorce. 

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