When you’re creating asset protection strategies, you must consider the possibility of divorce and how it can affect your financial health.
In matters of the heart, no one ever wants to think about the worst-case scenario. Unfortunately, the odds are not in your favor, so it pays to be prepared. This is especially important for business owners and high-income earners.
Unless you want the courts to decide how to divvy up your hard-earned wealth, you need to implement comprehensive strategies to preserve your assets.
Protect Assets before an Impending Divorce
If you are planning to file or you know the other side is, it may not be too late to take action to protect your assets.
Asset preservation vehicles such as domestic and offshore trusts, single-purpose entities and even mortgage loans can contribute to an effective — and legal — asset protection plan.
Consult an attorney who specializes in estate planning and wealth preservation before taking any action, however, because your assets will come under intense scrutiny as the divorce progresses. If you don’t keep everything legal and above-board, you could end up losing even more than you would have if you’d done nothing to protect yourself.
Act Quickly if You Get Served by Surprise
Hopefully you’ll never have to deal with the unexpected service of a divorce action, but it happens every day. If you find yourself caught unawares, it’s critical that you contact an asset protection lawyer as quickly as possible.
Depending on where you live, the court could freeze your assets immediately. In that case, you must determine whether you have the legal right to remove half of any joint accounts.
An attorney can help you set up new accounts and protect yourself from any additional debt your soon-to-be-ex-spouse may try to rack up. You may not be as clear-headed as usual during this stressful time, so let your legal advisor help you do what you can to preserve your assets.
Implement Proactive Divorce Asset Protection Strategies
The specific strategies you choose will depend on your portfolio of assets as well as your relationship status. The state in which you live also matters, specifically with regard to how its laws allocate property to divorcing spouses.
Tax attorneys can recommend asset protection strategies based on these and other factors to create a plan tailored to your specific needs.
If you’re planning a wedding, your attorney will likely broach the subject of a prenuptial agreement, which can be a touchy subject for many couples. If you’re already married without a prenup, you may want to explore the possibility of a postnuptial agreement. This may require some delicate negotiations with your spouse, but once in place, such as agreement can go a long way toward protecting your assets.
The asset protection specialists at Cantley Dietrich understand the importance of preserving your wealth no matter what events transpire in your life. We work closely with you to develop strategies that work for all involved parties and allow you to resolve property disputes quickly while minimizing losses to the assets you’ve worked hard to accumulate.
Contact us today to learn more about how a divorce affects your asset protection strategies.
NOTE: This article is for informational purposes only and should not be construed as providing legal advice. Use of this site does not create an attorney-client relationship. Contact an attorney to obtain legal advice.