How to Protect your Assets in a Divorce
One of the biggest issues people face in a divorce is figuring out how to best protect their assets. Although no one plans for or expects a divorce in advance, there are certain measures that parties to a marriage can take in order to protect themselves in case of a divorce.
1. Know your partner’s finances before you get married. In order to protect your assets for the future, it’s important to know you and your spouse’s financial compatibility prior to marriage. For instance, if your future spouse has significant debt, it could potentially bankrupt you after marriage. Discussing finances with each other can better enable spouses to resolve issues such as debt.
2. Discuss whether to keep credit separate. Because one party to a marriage’s bad credit can affect the other person’s, consider keeping credit separate when possible. This would mean having separate credit cards and bank accounts. You also may want to consider keeping a record of spending, to decrease the chances of having to pay back debt incurred by your spouse.
3. Include your name on joint property. If your name is on co-owned property that you and your spouse purchase together, you can ensure that you will receive a portion of that property if you get divorced. By putting your name on joint property, you are protecting your right to a portion of those assets.
4. Keep records of your finances. Each party to a marriage should keep records of their spending and of other documents related to finances, such as 401(k) statements, tax forms, home appraisals, life insurance policies, etc. These documents could be useful in the event of divorce proceedings.
5. Consider getting a prenuptial agreement. Getting a prenupt is often a sound financial decision, because it can help you and your spouse come to an agreement early on about how your property and assets will be divided in the event of separation or divorce.
While these general guidelines can help people protect their assets in case of a future divorce, if you are currently going through a divorce, you can best protect your interests by hiring an experienced and competent family law attorney. To meet with a divorce attorney, contact Brian D. Perskin & Associates P.C. today.