If a divorce might be on the horizon, a person may worry about protecting assets. Such concerns heighten when mates have many years together or have no prenuptial agreement.
Even without a contract, a person may be able to take steps to retain control over personal property and wealth after a divorce.
Keeping assets separate
One of the primary ways of protecting assets is carefully keeping belongings separate from the other spouse’s accounts. Any assets and investments a person acquires before marriage can remain solely in that individual’s name. However, following this strategy means not sharing gifts or inheritance a spouse receives during the marriage.
Knowing the value of assets
Understanding the value of assets before divorcing helps both parties make informed decisions about who keeps what items afterward. It may be necessary to hire an appraiser to assess the worth of each item accurately.
Not changing property titles
It can be tempting to change titles on pieces of property, such as houses or cars, to gain more favorable terms during asset division proceedings. However, such actions can lead to serious legal ramifications and cost more money in the long run.
Drafting postnuptial agreements
In some cases, couples may enter into postnuptial agreements, where mates sign documents after the start of a marriage rather than before it takes place. These agreements outline the division of property and other assets should spouses decide to divorce.
Postnuptial arrangements will likely face heavy scrutiny and may not hold up in court if there was any coercion or fraud when signing them. A person needs abundant caution before creating such an agreement.
Divorces can become especially thorny when it comes time for asset division. While a prenuptial contract typically offers ideal asset protection, other remedies may accomplish a similar goal.